United Airlines Video Sparks Global Outrage
SESSAY: Well, Toshiba is far into nuclear power may have poisoned the company for good. The Japanese conglomerate says, it has substantial doubt about its ability to continue, Toshiba reported a net loss of nearly $6 billion in the fourth quarter of last year.</s>VAUSE: The Company is being bought down by its U.S. nuclear business Westinghouse Electric, which filed a bankruptcy protection last month. The subsidiary suffered billions of losses because of cost over runs and construction delays at two U.S. nuclear plants. United Airlines is dealing with public relations nightmare of images of security officers dragging a passenger from a full flight sparked outrage around the world.</s>SESSAY: The airline CEO issued a third statement Tuesday, apologizing to the passenger of what he called a truly horrific incident. CNN Aviation Correspondent Rene Marsh has the details.</s>RENE MARSH, CNN AVIATION SORRESPONDENT: As United Airlines passenger David Dao receives treatment for his injuries at a Chicago hospital. The airline is tail spinning into a public relations disaster. After a video of Dao being dragged from a Sunday night flight went viral.</s>UNIDENTIFIED FEMALE: Oh my god.</s>MARSH: The airline first said, the flight was overbooked then change its language Tuesday to oversold. United did not respond to multiple attempts to clarify the change. From the White House.</s>SEAN SPICER, WHITE HOUSE PRESS SECRETARY: Clearly when you watch the video. It is troubling to see how that was handled.</s>MARSH: To Late Night</s>T.V. JIMMY KIMMEL, HOST, "JIMMY KIMMEL LIVE": The CEO of United released a statement via Twitter. This is what the CEO tweeted. "This is an upsetting event to all of us here in United. I apologize for having to re-accommodate these customers." Right. He's kidding re- accommodate. This is -- it's like when we re-accommodated El Chapo out of Mexico. That is such sanitize statement say nothing, take no responsibility, corporate B.S. speak. I don't know how the guy sent that tweet and didn't vomit when he typed it out there.</s>MARSH: And on social media. United Airlines is feeling the sting. Not just for the violent removal of the passenger, but the airlines' lack of compassion. It took two days before CEO Oscar Munoz apologized directly to Dao who had been left bloodied after the incident. In a statement Tuesday, Munos said, quote "I deeply apologize to the customer forcibly removed and to all the customers aboard. No one should ever be mistreated this way." The new statement a far cry from the e-mail the CEO sent to employees Monday defending the flight crew and calling the passenger "Disruptive and belligerent." And in Munoz very first statement he only apologized for having to re-accommodate customers. Although it is legal for airlines to deny boarding to passengers if it's over booked, lawmakers are also calling foul. Governor Chris Christie is calling on the Trump Administration to suspend the federal regulation that permits airlines to over book flights and remove passengers as a result. Meanwhile, members of Congress are calling for the Department of Transportation to launch an investigation. Right now, the agency is only reviewing the incident. The video has breached borders, trending on China's version of Twitter generating more than 100 million views potentially harmful to the airlines' bottom line. China is a huge growth market for the airline. The airline's CEO pledged a "Thorough review" of how the airline handles oversold flights and how it works with law enforcement. He said, that the review would be completed by April 30th. Rene Marsh, CNN, Washington.</s>SESSAY: So, is that the price passengers have to pay for cheap air travel? Well, the glamorous days, were they so glamorous anyway?</s>VAUSE: OK. Let's find out more. We're joined by Global Business Executive Ryan Patel. Ryan, nice to have you with us here. OK. So, you know, maybe the glamorous days weren't so glamorous after all. Maybe were just, you know, delusional, but. OK.</s>SESSAY: Speak for yourself.</s>VAUSE: United has now revealed that the flight was not actually overbooked when they went to removed the four passengers. It was just booked -- fully booked. And so, they are removing these passengers to give up their seats for employees of the airline. That one side, overbooking is a common practice. It's done by most of the major airlines not just of United States, but around the world. Hotels do it. Rental car companies do it and it one factor in bringing cost and prices down. If you want a cheap airline ticket, this is the price you have to pay. Is that a fair statement?</s>RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: Yes and no. I mean that for me it is using hotels now and rental cars, but for airlines is a practice that causes really disruption in a lot of places. And this in the airline industry, they're able to get away with it, because there's not a competition to be able to do it. So, at least in the hotels and rental cars you have consumers giving feedback and there's a change. Right now, what you're seen in the airlines you get a lot of push back right now from consumers. And you can see that today in the market, that they got really press. For policy that you said, that is normal for all the other airlines. But got deemed as, hey, this is not the right thing to do.</s>SESSAY: As you talk about the lack of competition, which has made these airlines so much powerful, I mean it's really driven how visually when you see the images of this passenger bloodied and battered. I mean, it shows that, you know, really airlines treat customers -- consumers with something approaching contempt these days.</s>PATEL: Yes. I know. And I think -- it's kind of the norm. I can't believe that I'm saying that right now. Consumers who are flying expect not to be treated well and especially in the U.S. on majority airlines. And for any company to come out and say, you know, apologize twice during the day that means you did something wrong. No matter United said this we're following the book. They did something wrong when it comes to protecting the consumer and taking care of it how it's suppose to be and feeling really apologetic of what happened and trying to find the solution to do to fix it. If it was any other company outside this industry we would be talking about a different story today.</s>SESSY: Yes, absolutely.</s>VASUE: OK. The CEO of United, finally issued an apology which is sort of alluded Tuesday -- came out on Tuesday. This is like the third time lucky for United. This is what he said. "I continue to be disturbed by what happened on this flight. And I deeply apologized to the customer forcibly removed and to all customers aboard. No one should ever be mistreated this way." OK. So, maybe we've now hit, you know, the lowest of the low point in customer service for U.S. Airlines. It does seem, though, it has been a race to be the bottom for the airlines, especially in the United States. They say they have a lot of competition for subsidized airlines, like, you know, the national carries like Emirates and India, that kind of stuff. And they can't compete. And so, they're trying to improve their service they felt their cost, right.</s>PATEL: And yes. And I think that's one excuse that, you know, it's to say, "Hey, we don't have to innovate and provide these services." But if the policy to allowed if United and Emirates and even Norwegian Air to kind come in and have more flights. Emirate CEO would tell you, "Hey, we're causing more competition, more routes, better service, we're actually punishing innovation". And it will have to force American United Delta to provide, "Hey, what are we doing next instead of saying status quo." So, we're kind of in the in between stage where, yes, we're being subsidized. We don't know how -- what the numbers per say is. But it causes completion for all of us on global market place. I think which it would be better for everybody. But, if you have status quo right now. You want to change it. And that's what the U.S. Airlines have done over 20, 30 years.</s>SESSAY: And typically, Ryan, you know, I can't help but ask in this kind of warped market or warped system where the airlines are so powerful. Where is the oversight?</s>PATEL: You know, that's to do with all the politics that's going on right now. I know that should come from the Department of Transportation. And they said, "Hey, we've got complaints come to us, come straight to us first, but there's no teeth, right, because really, you know, who has the teeth? The consumers will have the teeth based off of flying with whomever they don't like. That will make Wall Street and everyone else pay attention to that.</s>VAUSE: Well, they show their teeth today. They saw what United done, instead of cutting out their United Airline credit cards and maybe the social media thing changes here quite a but. Ryan, thank you so much, great to see.</s>SESSAY: Thank you Ryan. Thank you.</s>VAUSE: Well, President Trump had a lot to say about Barack Obama's travel habits. But now, conspicuously silent about his own weekend get away ahead. How much is all these costing U.S. tax ban.