United Airlines Stock Loses Millions on You Tube Song

United Airlines customer, Dave Carroll, witnessed baggage handlers throwing his $3,500 Taylor guitar. When Carroll finally reached his destination he opened his guitar case to find the guitar had been broken. For nine months he called United Airlines customer support to receive compensation. Finally, after nine futile months, when he received his final “no”, Carroll made a music video about his negative experience and posted it on YouTube.

His “United Breaks Guitars” video was released on YouTube in July 2009 and it got over 150,000 views within one day.

United Airlines took a week to react to the video and by that time it had “gone viral” with over 11 million hits to date. Finally, when United Airlines did call to compensate him for the damages, Carroll declined because the exposure was worth more than the $1,200 it cost for him to fix the instrument.

A belated compensation offer of $3,000 which was donated by United to the Thelonious Monk Institute of Jazz (an organization chaired by several upper-management personnel from United) but by then, United Airlines stock price plunged 10% costing shareholders $180 million. Bob Taylor, owner of Taylor Guitars, immediately offered Carroll two guitars and other props for his second video.  People power is extraordinary in the way it sometimes works. The song is cool. Stuart Wilde www.stuartwilde.com