Dont Worry United Maybe It Will all Blow Over

By Mark Scheinbaum

MIAMI (April 13,—To the people who say United Airlines’ decision to drag a Chinese-American doctor off of a flight for refusing to sell his seat to “dead-heading” employees “will blow over” and all will be normal, I suggest a reality—or a calendar check.

In the year 2017, corporate boo-boos can’t be healed with a press release and a kiss.

United/Continental stock was down the day after the incident, and it took about an hour for folks to post “Boycott United” on USA social media. But things these days have unintended consequences. The links below** show how the main French news agency, AFP, in a story dealing with China, appearing on Yahoo home pages in the USA talks about the wave of social media reaction against United Airlines.

The next story is from VARIETY, the Bible of the entertainment world, which reports that the Chinese version of Twitter has already had 77 million views in its criticism of United, which claims to be the largest international carrier to and from China.

Again, regulators, lawyers, legislators and armchair quarterbacks will review the actual incident. But be sure when Latin American “Azul” airlines made its gala debut on the New York Stock Exchange yesterday, reporters had the CEO talking about United, and he was happy to oblige by explaining differences on HIS carrier.

(The furor over this incident might even be more bizarre if it turns out, as hinted by some later developments, that the ejected passenger was actually insisting that he be arrested, and allegedly alerting an attorney to sue United Air Lines while the incident was still unfolding[fake news?] .

Yet, even if some sort of “agent-provocateur” scenario emerges, it will not erase the viral social media images of the event.)

All of this must be placed in historical context.

When a documented drunken captain ran the Exxon Valdez (1989) aground, polluted Alaskan waters and killed wildlife, millions of environmentalists said they would never buy Exxon gasoline. People cut up their Exxon credit cards. But a generation later I still see plenty of people filling up at Exxon. Warm and fuzzy wildlife infomercials and public relations initiatives eased the pain.

When a predator tampered with Tylenol caplets in Chicago (1982), poisoning people and causing a shockwave against all of its manufacturer Johnson & Johnson’s products, reaction was fast and furious.  Every single bottle and box of Tylenol in the world was pulled from stores. Shrink wrap and childproof anti-tampering caps were added. A media blitz documented each and every step J & J was taking to protect the purity of one of America’s oldest brand names. And it worked. The Tylenol emergency is the textbook example of how to handle a corporate crisis.

But what worked on TV, radio and newspapers 20, 30, or 40 years ago absolutely will not work today.

When people pose a medical question on Facebook, dozens of people with no medical degree respond with conviction and details, and sometimes ridiculous advice.

When people think self-help in my industry—financial services—is a guarantee that cheaper is better and people with no license or credentials tell their friends where to put their money, it is normal, accepted, and welcomed.

On the personal level, why should a single person go to a library, a concert, a volunteer community project or join a civic club to meet people? Just pay an online dating service, and millions have, and millions will and millions of people marry their online soul mate.

I am neither a sociologist nor qualified to predict the ultimate outcome of the lawsuits against United, or the divorce rate of online spouses, but it does not take an Einstein to see the new way things are working.

Online rumors, innuendo and of course, mass anger can determine what soft drink you buy, what President you elect, and what airlines you will never, ever, fly for the rest of your life.

….And besides, some of these airlines don’t even give you a snack anymore!

**See:

https://www.yahoo.com/news/china-internet-outcry-over-united-passenger-fiasco-091833402.html

and

http://variety.com/2017/digital/asia/racism-allegations-united-airlines-chinese-social-media-1202028033/

Regular contributor Mark Scheinbaum is a former UPI Newsman and serves as Managing Director of Shearson Financial Services in Boca Raton, FL  (Mscheinbaum@Shearsonjllc.com). his opinions are his own and do not represent his firm or any investment views of his firm.