United Air Lines – The Bad News Continues to Dribble Out

By Hank Boerner
April 12, 2017

United Air Lines, need we say, is in the midst of a serious brand and reputational crisis. Social media chatter is replete with those awful loops of passengers’ cell phone videos of “brutality” on a UAL aircraft — and are spreading the bad news worldwide, in a flash!

Broadcast and cable channels had a good run of the story with passenger videos as the highlights of the report on the goings-on in Chicago on Sunday night. Love those ubiquitous cell phone cameras.

How both alarming, and mesmerizing: Who could turn away from the video clips of ham-handed airport security staff dragging a 69 year old paying customer out of his window seat, slamming his head against the seat post, knocking off his glasses, bloodying his face, dragging him down the aisle in front of other passengers. No wonder it went viral – worldwide!

While he (Dr. David Dao) apparently tried to explain at the start of the incident that he was a doctor and needed to get to his patients in Kentucky, airline staff and airport security officers ignored him — and got on with the job.  And so we saw them in action.

Oh, those resulting headlines:

Facebook: (“Man Violently Dragged Off Plane After United Airlines Overbooks Flights!”)

Also reported with the passenger videos on The Huffington Post. “Dragged like a rag doll,” a witness posted on a Twitter account.

Facebook: (“United Airlines CEO Says Cops Will Never Remove a Booked Passenger Again…Will Use Common Sense.”)

A passenger watching the incident told the media: “He said, more of less, I’m being selected because I’m Chinese…”)

All of this is certainly not good news for the airline on the China mainland, where there is wide public outrage being expressed. The doctor clearly being brutally yanked from his window seat – which he paid for and thought he was entitled to — and was apparently of Chinese or Asian origin.

(The devil is in the details; have you ever read the fine print of the Airline Contract of Carriage, which sets out the rights, rules and procedures governing your relationship with an air carrier? Here’s United’s, in case you are considering a flight: https://www.united.com/web/en-US/content/contract.aspx )

United and its China Market

United has scheduled flights between the USA and China cities — Chicago/Beijing; Chicago/Shanghai; Denver/Zian; Houston/Hangzhou..,and more city-pairs. United has flights to five mainland China cities from various U.S. cities. In all, UAL has cities to 14 different Asia/Pacific destinations. Not a market to have branding issues in, especially this, with discrimination overtones.

What are the Asian customers of the airline thinking about today? There were almost 300 million immediate “hits’ on Chinese social media — and the story is still “new” and in the current news cycle. A boycott was part of the chatter.

And those passenger-provided cell phone videos continue to play in endless loops on television news media around the world.

As Fox Business reported, “Horrifying Video Threatens United Airlines’ Big Investment in China.”

Speaking from Experience

I’ve worked a good number of years during my career as an airline corporate citizenship manager, spokesman, issues and crisis manager, and marketing strategist. I can’t fathom what would move airline personnel to conduct themselves in such a manner when it comes to dealing with their customers. ( “The flying public,” as one would say,)

Yes,working with passengers, things can get tense. Perhaps the cabin crew was exasperated due to a series of incidents (the “now what”!); maybe the ground crew just wanted to get customers off/employees quickly to avoid criticism (what? you didn’t get the flight crews to Louisville on time?).

Of course, all manner of operational issues come up with an airline company having so many moving parts. Fleets of giant airliners moving through the skies, leaded with passengers; landing and taking off at various airports, large and small; the task of people-scheduling to make sure employees (including flight crew) are at their assigned post for “go on time”; fuel loading; baggage loading/unloading; dealing with changes in weather…and more.

Airlines train and train again to make certain their employees are prepared for “anything.”

And then in an instant it hits the fan and we find out if all that training paid off, are we really ready. Or not! United clearly was in the “not” column this weekend.

The Crisis Details Dribble Out

The details continue to dribble out (the worst scenario in a critical issues situation, of course). The Sunday evening Chicago-Louisville flight (3411) was ready to go and then came the announcement: the plane is over-booked and four passengers need to get off.

The airline’s explanation was that the flight being overbooked (again, not uncommon) meant that four people had to yield their seats. Money was offered (again, not uncommon — it’s the way carriers coax passengers out of their seats).

What happened next? The Washington Post played the story big in the nation’s capital. Where lawmakers, employees of regulatory agencies and other key players could take it all in.

This is an example of where the right or wrong language used is Important — especially in critical incidents.

The Post reported that the airline told the local newspaper in Louisville that the situation was “an involuntary denial of board process.” (Is that clear to you now?).

Apparently no one on the Sunday night flight home to Louisville quickly volunteered to leave their seats. (If you were headed home, would you have gotten up? Maybe – people do that when the price is right.) That’s when the airline “chose” passengers to leave the flight to accommodate four UAL personnel who “had to fly” to get to other aircraft to meet flight schedules.

So, the airline staff selected by some means four people to leave the aircraft.  Three people agreed to leave. When a fourth passenger would not leave his seat, the crew summoned Chicago Department of Aviation security and the man was violently dragged out of his seat and down the aisle and off the plane.

Somehow he got back on the plane, blood on his face, glasses back on, howling it was said, and then was dragged off again. He eventually left the terminal on a stretcher. (The flight will not leave until everyone is off, the cabin crew evidently barked to the passengers.)

When the four crew members came on to fill the vacated seats they were reported to have been booed. Aren’t you ashamed to work for this company, people shouted to them.

The airline began to communicate, sending conflicting messages to the employees and media. (The flight was overbooked; or, the passengers had to make way for United employees. The passenger was belligerent end unruly. The removal was established procedure. The man ran back onto the aircraft in defiance of both our crew and security officials. )

EVERYONE was taken off the plane and after a while re-boarded as the man left on a stretcher. Some did not re-board (they were high school students and their chaperone, the Post said).  The CEO issued an apology to the passengers who were re-accommodated!

Fall Out – Death by a Thousand Cuts

As The Washington Post put it: “It’s a story that has shaken a global air carrier worth billions of dollars – and one that people around the world can find nothing right in at all.”

Investors reacted on Monday, sending the UAL stock downward at once. (CNN: “How to make a PR crisis a total disaster.”)

At the daily news briefing the White House press secretary was asked if a federal investigation was warranted. The U.S. Department of Transportation was looking into the situation, we learned. The late night comedians had new content to add to their stand up routines.

Finally the CEO apologized to the passenger who was “forcibly removed” and to all customers on board the fight. “No one should ever be mistreated this way.”

Another oops moment the media had fun with: Oscar Munoz, the CEO, was named “Communicator of the Year” by PR Week for “transforming the fortunes of the beleaguered airline, galvanized the staff, and set the airline on a smoother course…” (This after a year-and-a-half on the job.)

Systemic Failure?

Over my four decades of crisis management, one of the things learned early on is that it usually is not a single “thing” that goes wrong. Whatever issues bubbling just beneath the surface can suddenly erupt to complicate the response to the (initial) single incident.

The information from the local scene (usually distant from the where the leaders who have  to respond is ) can be scant; the news reports can be conflicting; the standard comments prepared in advance can sound hollow and uncaring as the details of the incident become more widely known. (“This is standard operating procedure?”   Really?)

Unhappy employees can react to situation irrationally and even violently; local managers can make very “wrong” decisions and then try to correct, making things worse at times.

This was a Sunday evening; management was not likely to be at the office and equipped to move quickly to address the situation and begin communications (not in either the HQs or the airport).

Lessons Learned?

What are the lessons learned? We hope for the Chicago Department of Aviation, it’s don’t go dragging and injuring passengers off a plane because a long-time hometown airline asked you to. The aviation authority had moved quickly to put the security officers involved on administrative leave.

For the airline leadership: Best to always think up and down the value chain about actions taken and communications needed with key constituencies.

Employees (we hope they are viewed as team members and not just numbers in an organization as it grows larger).
Customers (especially those in physical proximity, at the curb, at the counter, boarding the plane, in their seats, during the fight, as they leave the cabin, getting their luggage).
Potential customers (what are they thinking today about their intention to fly United).
The public-at-large (who as they continue to fly in greater numbers and frequency have come to think of airlines as un-caring, faceless bureaucracies that take advantage of the public with planes that are cattle cars in the skies).

Regulators (yes, airlines are still regulated entities).

As for not flying United, we must remember that they have 50% or more market share at some key cities (Newark, New Jersey) and considerable share of market at Orlando, Boston, Washington DC, Los Angeles, Denver, Houston. (In 2010 United and Continental merged, creating one of America’s largest airlines.)

Perhaps then we should re-examine the structure of the American airline industry: have the dominant carriers become too big to manage?

Should we explore public policies that would begin to return us to the days of robust competition within the U.S.A. industry to try to ensure greater competition and more “customer-friendly” service?

More accountability by large carriers? Should we devise consumer protection measures that would help to reduce the perception that airlines don’t give a damn about their customers?

These and other questions will likely be raised by public policy experts in the days ahead, as the United situation calms down…and another airline crisis erupts. United meantime is the poster child for everything Americans hate about the airline industry.

# # #

Author Post Script:  July 6, 2017 – ABC News Report

Well, it happens again — United Air Lines accused of abusing a customer today.  A mother traveling with a 27-month old son, en route to Boston from Hawaii, had to hold the boy on her lap for hours of the final leg of the flight.  She bought a ticket for the son — two tickets for the flight, money in the United till.  So what!  Hey, we are overbooked – so hold the kind on your lap. (As unsafe as that is – note, please, federal safety regulators.)  A standby passenger took the boy’s seat.

Later United evidently learned that the boy’s ticket was not properly  scanned.

The woman did explain the situation to the crew.  We wonder what is missing in common sense, good judgment, customer-first (should be) thinking at the carrier.  Oh, and the woman appears to be of Asian background.  United is counting on the Asia market – on China flights — to assure its future.   A small note to think about as you Stay Tuned top United’s passenger treatment.

 

The Cyber Attacks on America — Today, Identifying Russian Civilian and Military Intelligence Players as the Culprits

December 29 2016

FBI, Homeland Security, the Director of National Intelligence, the White House — speaking out today on the issues.  The pros and cons are vigorously debated!

by Hank Boerner

The headlines roared forth today:  President Barack Obama’s Administration announcing sanctions on Russian interests — President-Elect Donald Trump saying he’s not so sure the Russians were involved.  Prominent Republican U.S. Senators (John McCain and Lindsay Graham) demanding action against Russia.  Back and forth it went all day and on into the nightly news and the chattering cable class.  Russian leadership immediately chimed in promising retribution for any U.S. action taken against their country.

So what is going on?  We’ll see a flood of comments here in the U.S. (pro and con, certain and questioning) on this and that and whatever, about the Russians hacking, whether that affected the recent election outcome, who thinks they did and who thinks they did not…and on and on.

Take a deep breath.  For context, let’s begin with the official announcements from the U.S. government agencies on the front lines of the attack/defense/retribution. (I know, I know — not everyone will trust the official government explanations!)  To the extent that you trust government agencies and leaders of those entities, at least understand what it is that they are saying on the record.  And what information they put forth to support their opinions.

The President today authorized actions in response to the Russian government’s “…aggressive harassment of U.S. officials and cyber operations aimed at the U.S. election in 2016…”

The President-elect has been communicating (in various ways as is his style) that he is not so sure that it was the Russian government.

Some people are not getting past these conflicting views to get to the rest of the story. (We do know that President-elect Donald Trump apparently bristles at any mention of less-than-a-triumph-for-him-at-the-ballot-box — just watch the tweeting. So the idea that there was outside influence could undermine the confidence in his win – not good.

The White House today emphatically said the cyber intrusions — yes, attacks — were intended to attempt to influence the 2016 election (the main story the media picks up on).  AND they were intended to erode faith in U.S. democratic institutions; and, undermine confidence in the institutions of the U.S. government.  That part should make every American anxious — and angry — and give pause to think about the consequences of this, if true — no matter their political and personal beliefs (left/right, liberal/conservative, Democrat/Republican, etc.)

The Obama Administration is taking action in response, and what we know at least publicly tonight is:

  • Nine Russian entities and individuals are now officially sanctioned. These are the two Russian intelligence services (GRU and FSB); four officers of the GRU; and three “companies” providing support to the GRU.
  • The U.S. Treasury Department identified two Russians who used cyber-enabled means to steal funds and personal identifications.
  • The U.S. State Department designated two Russian compounds (in New York and Maryland) used by Russian intelligence agencies, ordering them shut overnight and entrance barred to Russians.
  • 35 individuals identified as Russian intelligence operatives are declared persona non grata – they are accused of violating their diplomatic duties and must leave the U.S. (and cannot enter if they are out of the country).  The individuals are in the Washington, D.C. Russian embassy and the San Francisco Consulate.  They have to be out of the U.S. (with their families) in 72 hours.
  • The U.S. Department of Homeland Security and the Federal Bureau of Investigation released de-classified technical information on Russia’s civil and military intelligence services cyber activity to help American network managers identify, detect and disrupt Russia’s global campaign of malicious cyber attacks.
  • The Obama Administration will deliver a report to the U.S. Congress soon detailing the Russian efforts to interfere in the November presidential election and what the Russians have done in past elections.  This should create more headlines (and cable chatter) as it lands on Capitol Hill.
  • The White House pointedly reminded us today that President Obama, back in April 2015 — long before the 2016 election — signed an Executive Order (#13964) creating a new authority for the U.S. government to more effectively respond to Russian (and others’) cyber threats.  This enabled the U.S. government to harm or compromise the abilities of “entities” attacking the U.S. — this could be via a distributed-denial-of-service (“DDOS”), for example.
  • And, the U.S. government could cause a significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain.  Watch this!  There’s three weeks to go in the tenure of President Obama.The FBI and the Department of Homeland Security today issued a “white bulletin” (publicly available information) on “Grizzly Steppe” (Russian Malicious Cyber Activity).  The 13-page document is a “Joint Analysis Report” (JAR) that says this:  Russian civilian and military intelligence services (“RIS”) have been attacking the U.S. government, private sector entities, political entities (the Democratic Party), and attempted to interfere with the presidential election.

Think about this:  Attacked / hacked in the USA:  critical infrastructure entities; think tanks; universities; political organizations; corporations in the private sector.

Today’s document provides detailed information for American network security managers to protect their systems. Watch out for “Energetic Bear,” “Fancy Bear,” “Grey Cloud,” “HammerDuke,” “Tiny Baron,” “SEADADDY,” “WaterBug” — and many more Russian operators in your IT systems!

As for the election season attacks, the U.S. government officially confirms that two different “RIS” actors penetrated the Democratic National Committee systems.  They were identified as “APT 29” and “APT 28” — Advanced Persistent Threats.  The successful attacks started in summer 2015 and continued into spring 2016. The attacks are detailed in the JAR — you can read it (it’s publicly available) here: https://www.us-cert.gov/sites/default/files/publications/JAR_16-20296.pdf

And to make sure the American public understands the Federal government’s position on the Russian attacks, the FBI, Homeland Security (DHS) and the Office of Director of National Intelligence (ODNI) said the following:  The intelligence community is confident that the Russian Government directed the recent compromises of e-mails from U.S. persons and institutions, and that the disclosures of alleged hacked e-mails on sites like DCLeaks.com and WikiLeaks are consistent with the Russian-directed efforts.

Government officials said this activity by Russian intelligence services is part of a decade-long campaign of cyber-enabled operations directed at the U.S. government and its citizens.

As we know, a great deal of information — such as analysis and forensics — related to Russian government activity has been published by private sector security companies.  The U.S. government today confirms that the Russian Government conducted many of these activities as reported by the private sector firms over the recent months. (The U.S. government says the attacks have been going on for a decade or more.)

And so, the U.S. government is now arming computer network defenders with tools to identify, detect and disrupt Russian cyber activities that can do harm.

Over the coming days there will be lots of back and forth on who did what / or didn’t / or who should be tracked down and punished / or “we should move on and forget all this talk about the election, etc. 

Remember that Executive Order 13694: It was issued in April 2015 and updated (amended) today by the President.  This is an Executive Order Taking Additional Steps to Address The National Emergency With Respect to Malicious Cyber-Enabled Activities.

The update adds entities and individuals to the “Specially Designated Nationals and Blocked Persons (SDN List). Russian individuals are named as well as these Russian entities:

  • The FSB / Federal Security Service of Russia
  • The Main Intelligence Directorate
  • Special Technology Center/St. Petersburg
  • Zorsecurity / Esage Lab / Tsor Security
  • ANO PO KSI — The Autonomous Noncommercial Organization of Professional Association of Designers of Data Processing Systems

Stay Tuned:  Watch the rollout of the activities authorized by the Executive Order — including naming names and related personal financial information that could roil Moscow, depending on the details to be released.

There’s still more than 20 days to go for President Barack Obama to order action. Silent or announced.

You can read the Executive Order update here at the U.S. Department of the Treasury: https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20161229.aspx

 

 

 

 

Just The Facts, Ma’am, Said Detective Joe Friday. The Dragnet Cop Should Be Around Today…

by Hank Boerner – August 11, 2016

The brilliant presidential advisors and later, U.S. Senator from New York, Daniel Patrick Moynihan, said it best: Everyone is entitled to their own opinion, but not their own facts.”

As I watch the current presidential campaign, the good Senator’s comments come to mind. So do the comments of Detective Sergeant Joe Friday on Dragnet (radio and TV) about “facts.” (“Just the facts, ma’am,” he would say.)

Too often, it seems, facts and fiction became intertwined and inseparable in the running commentary of the 2016 presidential election.

Let’s look at some economic facts in the hope that he American voting public can be better informed when watching the television news reports or attending a political rally.

Let’s start with these exciting facts for investors: Today as I write this (August 11) the three major stock market indexes all reached all-time highs, simultaneously. The last time that happened was 1999 – 17 years ago.

Today the most followed market stock market indexes stand at:

  • Dow Jones Industrial: 18,613
    S&P 500: 2,185
    NASDAQ: 5,228

Where were we on January 20, 2009, as the new president was being sworn in? (Recall that was the time of the financial markets meltdown and investment portfolios were heading to 40% losses.)

  • Dow Jones Industrial: 7,949
    S&P 500: 805
    NASDAQ: 1,140

This week’s market news is pretty encouraging for 401-k and IRA owners, eh?

Let’s look briefly at national unemployment rates:

  • July 2016: 4.9 per cent
    January 2009: 7.8% (would rise to 9.9% by December)

The web platform Politifact (published by the Tampa Bay Times in Florida) provided a scoreboard of the economy under President Barack Obama in June 2012 as he neared the end of his first term.

Fact: Overall inflation was 4.3% in 2008 / “Zero” was at in 2009

In the months leading up to the start of the Obama Presidency in January 2009, layoffs were peaking and the number of jobs lost — according to the U.S. Department of Labor — exceeded an estimated 7 million jobs…going, going gone as the Great Recession took the national economy into the abyss.

In December 2008 the U.S. Department of Labor described the situation this way: “…unemployment rose to 7.2% (from 6.8% the prior month); employment [fell that month] by 524,000; 1.9 million jobs were lost in the last four months of 2008; job losses were large and widespread across major industry sectors.”

There were 2.6 million jobs lost just in the year 2008 alone (fact source is CNN Money). The job losses in the U.S.A. were astronomical as the stock market cratered in 2008 and into 2009.

Consider: In September 2008: some 400,000-plus jobs were gone. In November 2008: 800,000 jobs lost. Layoffs continued into 2009, into the early months of the new administration in Washington (April 2009: almost 700,000 jobs disappeared).

Think of the ripple effect — if one industrial job was lost, economists’ rule of thumb was that three or four or more other jobs were disappearing, too.

The Center on Budget and Policy Priorities reported on August 10, 2016: Employers have added nearly 200,000 jobs each month since early 2010. (Remember: early in 2009 Congress passed the American Recovery and Reinvestment Act of 2009.)

After going deep into non-growth GDP territory in 2008, 2009 and toward 2010, we moved back into positive growth in 2010 and pretty much stayed there until today.

Check out the interesting charts at: http://www.cbpp.org/research/economy/chart-book-the-legacy-of-the-great-recession.

Last month — July 2016 — the country added 255,000 jobs.

Whether you believe the White House records or not, in March 2016 that was the source for this set of data:  The private sector had added 14.4 million jobs over 73 straight months of job growth.

There was not all good news of course, and you can check out the full report with its data and charts here: https://www.whitehouse.gov/blog/2016/04/01/employment-situation-march

Look at the job gains as reported by the Bureau of Labor Statistics, U.S. Department of Labor this year (2016) alone:

January:168,000
February: 233,00
March: 186,000
April: 144,000
May: 234,000
June almost 300,000
July: 255,000

And let’s not remove from our memory the preservation of an important industry employing hundreds of thousands of men and women in this country: vehicle manufacturing and marketing. Politifact noted (September 2012) that employment for car makers and their suppliers was up 250,000 jobs from 2009, with sales rising for Ford (13%), Chrysler (14%) and General Motors (10%) in 2011.

That’s a long way from 2008: GM out of cash to pay bills, Chrysler reeling as well; Ford in better shape financially having mortgaged literally all of its assets just before the financial meltdown on Wall Street. (The New York Times, November 27, 2006 — USD$19 billion as factories, equipment, offices, patents, trademarks, ownership in Volvo and other businesses were mortgaged.)

The rescue of the auto industry began under the presidency of George W. Bush, using TARP funds in his last months in office (fact), and continued under the presidency of Barack Obama. The heart of U.S. industrial power, the auto & truck manufacturing industry, was rescued by the Federal government with U.S. taxpayer money — which has been paid back for the most part. And jobs were protected.

“Make America Great Again,” the apparently trademarked slogan for the 2016 campaign (should we put a “TM” or “patent pending” or “R” here?), does have a certain resonance. In economic reality terms, however, it does not reflect the true condition of the economy after eight years of the current occupant of the White House. (He-whose-name-may-not-be-mentioned-in-certain-circles. OK, it’s Barack Obama.)

We as voters are entitled to the facts – -not fear mongering, not the offering up of misleading “facts” or the rhetoric of provocateurs. Having facts we can make better informed decisions as part of our civic responsibility — that is, when we enter the voting booth.

This probably comes across as a partisan commentary, favoring one side or the other. My intention is to present facts — the word descending down to our time from the ancient Latin, meaning “…the thing that is done, the thing known to be true…” vs. factitious, descending as well from Latin “…imagined, made up, artificial, not real or genuine…”

As fictional detective Joe Friday used to say on the popular television series “Dragnet”: “…just the facts, ma’am, just the facts…”

Or in the expression of this era…just sayin’.