United's board said on Friday the company had to craft policies to win back customer trust and apologised to Dao and his family.
"A commercial airline that removes validly seated customers without serious cause breaches the sacred trust between passengers and their airlines", the bill said.
After Dao, 69, refused to give up his seat to make room for four crew members, a group of security guards dragged him by his feet down the aisle and off the airplane.
Eventually, United's chief executive, Oscar Munoz, apologized for the whole fiasco and promised it wouldn't happen again, but by that point, no one really wanted to hear it.
United spokeswoman Maggie Schmerin said the policy change is the first step of an ongoing review of what happened.
According to video taken by passengers, Dao was repeatedly asked to get off the aircraft by law enforcement and told them they would have to drag him off the aircraft. Media coverage created a PR nightmare for the airline.
United, which is undertaking an audit of its practices, already amended some policies, saying it will require employees to be booked at least 60 minutes prior to departure.
In an effort to save face, United announced last week that it would reimburse all the passengers on the flight where a passenger was beaten, bloodied, and removed from his seat.
Although United later clarified it was to accommodate additional flight crew, the incident nevertheless cast a spotlight on the unsavoury industry practice.
"For a long time, airlines - United in particular - have bullied us". The ordeal led to demonstrations at Chicago's O'Hare International Airport and turned into a public relations disaster for United Airlines. They have treated us less than we deserve. This comes after they forcefully removed a passenger on the plane to give a seat to a commuting crew member.
It is legal in the USA for airlines to overbook flights to compensate for unfulfilled bookings.
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