08 May, 2017
The airline had been faced with fierce public backlash after Dao was seen on cell phone video being dragged off a flight after refusing to give up his seat for a United Airlines crew member earlier this month.
United said in a separate statement that it was pleased to reach "an amicable resolution of the unfortunate incident that occurred aboard flight 3411".
On Thursday, Thomas Demetrio, Dao's attorney, said in a statement that the policy changes "are passenger friendly and are simple, commonsense decisions on United's part to help minimize the stress involved in the flying experience".
Calling his client "the unintended champion" for airline changes, Demetrio hoped other airlines would follow United's lead and reevaluate their procedures.
Chicago aviation police dragged Dao up the aisle of the packed plane when United needed to make room for airline employees.
A provision in the settlement, which was reached on Thursday, specifies that the terms of the amount be kept confidential, according to a press release sent to Chicagoist from Dao's legal counsel.
The airline was criticized in March after a gate agent stopped two teenage girls from boarding a flight because they were wearing leggings - an apparent violation of a dress code for passengers traveling in a program for employees and their dependents.
United said they had asked for volunteers but no one volunteered and soon after Dao was selected to be removed from the flight along with three others. But when he refused, officers grabbed him and pulled him off of the airplane.
The four officers who forcefully dragged Dao off the flight have all been placed on adminstration leave.
The ordeal became an global embarrassment for both the carrier and the city's aviation department. Southwest Airlines announced on Thursday that it will stop overbooking flights altogether.
Dao's lawyer said earlier this week, during an interview on The Today Show, the Kentucky doctor planned to sue United after suffering a concussion, a broken nose and broken teeth as a result of the forcible removal.
Earlier this month, Delta was the first airline to announce that it was raising compensation for those involuntarily bumped from their flights to almost $10,000 - up from $1,350. Shortly after the incident, he had also come under fire when his initial response was perceived as insensitive.