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Will United Continental's (UAL) Dog Fiasco Lead to New Laws?
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The latest fiasco at United Continental Holdings, Inc. (UAL - Free Report) , which resulted in the tragic death of a black French bulldog puppy on one of its flights on Mar 12, 2018, has not gone unnoticed by lawmakers in the United States.
According to a Reuters report, U.S. senators — John Kennedy and Catherine Cortez Masto — have introduced a legislation aimed at preventing airlines from putting live animals in overhead bins. The senators have also proposed the imposition of fines on violations of the animal-friendly measure.
Following the dog fiasco, shares of United Continental have lost 2.6% of its value this week versus the 0.7% decline of its industry.
Reasons Behind the Proposed Bill
The senators filed the bill (christened Welfare of Our Furry Friends Act) following the public outcry prompted by the puppy’s death on an United Airlines flight (1284) from Houston to New York. The carrier, however, apologised the next day (Mar 13) for the tragic incident, which is currently under investigation. Also, it has promised to issue bag tags for carriers of animals to avoid a repetition of the same incident. We note that United Airlines is the wholly-owned subsidiary of United Continental.
The owner of the bulldog puppy was reportedly insisted by a flight attendant to put the bag containing the animal in an overhead locker. As a result of this inhuman instruction, the dog died by the time the flight landed in New York's LaGuardia Airport.The Chicago-based carrier, however, said that the flight attendant was unaware of the dog in the bag.
Whatever, be the real story, it cannot be denied that United Airlines’ track record with respect to customer service over the past year is not one to be proud of. It all started with the infamous David Dao incident on Apr 9, 2017.
Animal Deaths: Highest on United Flights in 2017
The death of the puppy further highlights the troubles faced by animals on flights of this Zacks Rank #3 (Hold) carrier. This is because the highest number of animal deaths among U.S. carriers in 2017 occurred in United Airlines’ flights.
According to data released by the Department of Transportation, 18 of the 24 animal deaths on U.S. carriers were related to United Airlines flights. On the flip side, other legacy carriers — American Airlines Group Inc. (AAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) — reported only two animal deaths each in 2017. The data also revealed that 138,178 animals were transported on United Airlines flights in the same year.
Notably, the highest number of animal deaths on United Airlines flights prompted Kennedy to shoot off a letter to the carrier’s President Scott Kirby demanding an explanation regarding the issue.
Even before the death of the French puppy, the issue of carrying animals on flights was very much in focus. In fact, Delta had announced a change in its policy pertaining to onboard service animals from March. Risks related to untrained animals in planes due to lack of regulations led to the change in policy.
At Delta, the concerned passenger onboard would need to furnish documents underlining the need for carrying the animal on the flight. Also, the person has to provide proof related to its training and vaccinations within 48 hours before the flight. Southwest Airlines Co. (LUV - Free Report) is also reviewing its policy pertaining to onboard service animals.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Will United Continental's (UAL) Dog Fiasco Lead to New Laws?
The latest fiasco at United Continental Holdings, Inc. (UAL - Free Report) , which resulted in the tragic death of a black French bulldog puppy on one of its flights on Mar 12, 2018, has not gone unnoticed by lawmakers in the United States.
According to a Reuters report, U.S. senators — John Kennedy and Catherine Cortez Masto — have introduced a legislation aimed at preventing airlines from putting live animals in overhead bins. The senators have also proposed the imposition of fines on violations of the animal-friendly measure.
Following the dog fiasco, shares of United Continental have lost 2.6% of its value this week versus the 0.7% decline of its industry.
Reasons Behind the Proposed Bill
The senators filed the bill (christened Welfare of Our Furry Friends Act) following the public outcry prompted by the puppy’s death on an United Airlines flight (1284) from Houston to New York. The carrier, however, apologised the next day (Mar 13) for the tragic incident, which is currently under investigation. Also, it has promised to issue bag tags for carriers of animals to avoid a repetition of the same incident. We note that United Airlines is the wholly-owned subsidiary of United Continental.
The owner of the bulldog puppy was reportedly insisted by a flight attendant to put the bag containing the animal in an overhead locker. As a result of this inhuman instruction, the dog died by the time the flight landed in New York's LaGuardia Airport.The Chicago-based carrier, however, said that the flight attendant was unaware of the dog in the bag.
Whatever, be the real story, it cannot be denied that United Airlines’ track record with respect to customer service over the past year is not one to be proud of. It all started with the infamous David Dao incident on Apr 9, 2017.
Animal Deaths: Highest on United Flights in 2017
The death of the puppy further highlights the troubles faced by animals on flights of this Zacks Rank #3 (Hold) carrier. This is because the highest number of animal deaths among U.S. carriers in 2017 occurred in United Airlines’ flights.
According to data released by the Department of Transportation, 18 of the 24 animal deaths on U.S. carriers were related to United Airlines flights. On the flip side, other legacy carriers — American Airlines Group Inc. (AAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) — reported only two animal deaths each in 2017. The data also revealed that 138,178 animals were transported on United Airlines flights in the same year.
Notably, the highest number of animal deaths on United Airlines flights prompted Kennedy to shoot off a letter to the carrier’s President Scott Kirby demanding an explanation regarding the issue.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Animal-friendly Measures on Flights in Focus
Even before the death of the French puppy, the issue of carrying animals on flights was very much in focus. In fact, Delta had announced a change in its policy pertaining to onboard service animals from March. Risks related to untrained animals in planes due to lack of regulations led to the change in policy.
At Delta, the concerned passenger onboard would need to furnish documents underlining the need for carrying the animal on the flight. Also, the person has to provide proof related to its training and vaccinations within 48 hours before the flight. Southwest Airlines Co. (LUV - Free Report) is also reviewing its policy pertaining to onboard service animals.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>