Unoccupied seat represents lost revenue

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Reference no: EM133016024

This article discusses a recent video showing United Airlines removing ticketed, seated passengers from a plane to make room for four of its employees who needed to fly to another airport (https://openstax.org/l/53VideoUnited) igniting debate over company policies and how they are implemented. This related article about the United Airlines overbooking situation (https://openstax.org/ l/53United) provides some more information.

Upon being asked to deplane and take a later flight, should a customer who has booked the fare for the earlier flight have the right to refuse? Which stakeholder(s) do you think United valued more in this incident? Why?

Airlines overbook to ensure that despite any no-shows or cancellations, any given flight will have as many occupied seats as possible, because an unoccupied seat represents lost revenue. In terms of valuing stakeholders, does this strategy make sense to you? Why or why not?

Reference no: EM133016024

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