Time for regulating the oligopoly of the airline industry. Obviously the safety of passengers can not be ensured anymore. https://medium.com/@thisTenqyuLife/united-airlines-should-go...
er, they're getting skewered in the media. United is paying the price for their mistake. If they're regulated, next time they drag someone off a plane, they'll say "We were just following the handbook and were in accordance with federal regulations. Take it up with the FAA" So no, no need to regulate the industry. Also, the body you want to regulate them (the government) routinely does much, much worse to people.[0]…
There's more volatility in the stock to be sure, but I wouldn't call this "paying the price for this mistake" according to public perception just yet. I don't know airlines well enough, but if I were going to take a position, it'd be long. The initial dip in the stock price tapered off, and the current price in pre-market trading has reached parity with 4/7 despite the relative increase in volatility.
Aside from market perception, I don't think UAL is going to lose much in sales (I'd love to be proven wrong though!). Airlines do not seem to really need to compete or differentiate themselves in customer service to be profitable.
These controversies have an impact on the stock price that is like the "villain of the week" impact on a show's overall plot - it's entertaining this week, but next week no one is going to care.