United Airlines boss: 'This never will happen again'

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United Airlines' CEO Oscar Munoz offered his "deepest apologies" to Dao.

A spokesperson said all those on Flight 3411 on Sunday night from Chicago to Kentucky would be "receiving compensation for the cost of their tickets", according to reports from USA media. He was later seen with blood on his face.

Munoz is scrambling to contain the damage to the carrier's reputation and vowed to reassess policies for seeking volunteers to give up their seats, for handling oversold flights and for partnering with airport authorities.

"Watching this makes my blood boil, I'll never fly United Airlines", said one Facebook user, Anh Trang Khuya.

One of the officers involved in Dao's forcible removal has been placed on paid administrative duty pending an investigation leave, according to the Chicago Department of Aviation.

"Probably the word is shame comes to mind", Munoz said after days of criticism and ridicule of the company on social media.

It later came to light that passengers were removed so that the airline's own staff could take a seat.

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United's initial PR statement made matters worse, and now the boss of the company has apologised, promising to "fix what's broken so it never happens again".

As of Tuesday, Dao was still in a Chicago hospital from injuries he sustained when airport security snatched him from his seat aboard United Flight 3411 to Louisville, Kentucky, his lawyer said. Mr Munoz told ABC he had no plans to resign over the incident.

Dao also talks on his phone to an unknown person, at one point discussing the possibility of a lawsuit against United.

Oscar Munoz told ABC News Wednesday that the passenger, Dr. David Dao, was not at fault and the incident occurred due to a "system failure" that resulted in a "lack of common sense".

The U.S. Transportation Department also is investigating whether United complied with federal regulations regarding overbooking.

An airline could use that approach if it needs to bump passengers who are already seated and are refusing to leave, said Brett Snyder, a former airline executive who runs the blog CrankyFlier.com.

The Chicago Aviation Department employee who pulled Dao off the plane has been suspended. He issued another statement on Tuesday formally apologizing for how Dao was treated. "This is wrong", "Look at what you did to him" and "Busted his lip". The four top-ranking members of the Senate Commerce Committee asked the airline and Chicago airport officials for more information about what happened.