United changes policies, will pay passengers up to $10,000

The airline also settled with passenger David Dao.

United Airlines announced 10 "substantial" policy changes to how it flies and serves customers following a disastrous month for United Airlines when a passenger was dragged off of an overbooked flight.

The passenger, David Dao, was left bloodied and injured after being forcibly removed. Several videos shared by fellow passengers went viral on social media. The airline is now offering customer compensation incentives for voluntary denied boarding up to $10,000, according to a news release.

The carrier also said it would limit its use of law enforcement to safety and security issues only, and also will not require customers seated on a plane to give up their seat unless safety or security is at risk.

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United employees will also undergo additional annual training, and the carrier will work to reduce the amount of overbooking, according to a statement.

The airline also reported that it reached an amicable resolution with Dao over the incident.

“We look forward to implementing the improvements we have announced, which will put our customers at the center of everything we do,” a company statement said.

To avoid any similar incidents, Delta sent an internal memo to employees earlier this month allowing them to increase the amount of compensation that can be offered to passengers. Delta is now letting employees offer customers almost $10,000 in compensation if passengers give up their seats on overbooked flights. If a flight is overbooked, airlines will typically ask for volunteers by offering travel vouchers, cash and gift cards.

» RELATED: 5 tips for booking cheap flights

The Delta memo, obtained by The Associated Press, said gate agents can offer up to $2,000 now, and supervisors can offer $9,950 — a major increase from $1,350.

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