Welcome to 10 Things Before the Opening Bell.If this was forwarded to you, <a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell">sign up here.</a> Plus, download Insider's app for news on the go – <a href="https://newsletter.businessinsider.com/click/25788217.148160/aHR0cHM6Ly9hcHBzLmFwcGxlLmNvbS9hcHAvYXBwbGUtc3RvcmUvaWQ1NTQyNjA1NzY_cHQ9Mzg1NzU4JmN0PTA2MjkyMDIxX25ld3NsZXR0ZXJzJm10PTgmbnJfZW1haWxfcmVmZXJlcj0xJnV0bV9zb3VyY2U9U2FpbHRocnUmdXRtX21lZGl1bT1lbWFpbCZ1dG1fY29udGVudD1PcGVuaW5nX2JlbGw/5cf970723f92a452082ea752B3f01ff5e">click here for iOS</a> and<a href="https://newsletter.businessinsider.com/click/25788217.148160/aHR0cHM6Ly9wbGF5Lmdvb2dsZS5jb20vc3RvcmUvYXBwcy9kZXRhaWxzP2lkPWNvbS5mcmVlcmFuZ2UzNjAubXBwLmJ1c2luZXNzaW5zaWRlciZucl9lbWFpbF9yZWZlcmVyPTEmdXRtX3NvdXJjZT1TYWlsdGhydSZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jb250ZW50PU9wZW5pbmdfYmVsbA/5cf970723f92a452082ea752B0911129a"> here for Android</a>.Let's jump in. 1. Metaverse madness has gripped the crypto market. Anything from real estate to high-end fashion is up for grabs in the virtual world. Last week's <a href="https://markets.businessinsider.com/news/currencies/metaverse-real-estate-property-sales-virtual-land-sandbox-decentraland-2021-11">sales of virtual land</a> fetched over $2 million, and a luxury digital mega-yacht just went for an eye-watering $650,000.And it hasn't ended there. Another plot of metaverse land has just <a href="https://markets.businessinsider.com/news/currencies/metaverse-property-sandbox-virtual-real-estate-deal-record-4-million-2021-11">sold for a record $4.3 million</a>, according to the Wall Street Journal.Big corporates are forging into the virtual world too. Some of the world's big luxury brands are well ahead of the game, with the likes of Dolce &amp; Gabbana and Gucci already selling non-fungible tokens — a sort of digital collector's item — of anything from virtual dresses to sneakers.Crypto asset manager Grayscale believes the metaverse could deliver <a href="https://markets.businessinsider.com/news/currencies/metaverse-1-trillion-opportunity-grayscale-virual-land-sales-decentraland-2021-11">$1 trillion in annual revenue</a>, and Bank of America says it's a <a href="https://markets.businessinsider.com/news/currencies/metaverse-crypto-cryptocurrencies-blockchain-technology-decentraland-bank-of-america-2021-11">"massive opportunity."</a> In case you're wondering, "the metaverse" refers to a range of online 3D virtual environments, where people can play games, build things, socialize, work and even trade and earn crypto assets. Check out play-to-earn platform Axie Infinity, and virtual worlds such as <a href="https://markets.businessinsider.com/news/currencies/metaverse-decentraland-festival-happening-again-next-year-nft-sandbox-2021-11">Decentraland</a> and Sandbox.But playing is a lot more expensive now than it was at the start of the year. Decentraland and Sandbox's tokens have soared from fractions of a cent to well over $5, while Axie's is now over $140, compared with just $0.50 in January. 2. US stock futures have recovered from Tuesday's Fed-led selloff. Investors are shrugging off a more hawkish note from Jerome Powell and some of the Omicron-related uncertainty. <a href="https://markets.businessinsider.com/news/stocks/stock-market-today-us-futures-dow-jones-omicron-jerome-powell-2021-12">Here's what is happening in markets.</a>3. As the Omicron variant rocks <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword>, some medical stocks are poised to rally. Credit Suisse analyst Matt Miksic said Omicron's effect on the medical device industry will be much less dire than it was earlier in the pandemic. <a href="https://www.businessinsider.com/best-stocks-to-buy-omicron-variant-investing-advice-credit-suisse-2021-11">Here are the five medical device stocks he thinks will outperform the market</a>. 4. Earnings on deck: CrowdStrike and Royal Bank of Canada <a href="https://markets.businessinsider.com/earnings-calendar">reporting</a>.5. Bitcoin has doubled in price this year, but its gains lag far behind ether's. The second-largest cryptocurrency by market cap has surged 530% in 2021. <a href="https://markets.businessinsider.com/news/currencies/ether-versus-bitcoin-price-comparison-cryptocurrency-ethereum-metaverse-2021-11">The performance gap of more than 400 percentage points is the widest since 2015</a>. 6. A company spent $4.3 million on a virtual plot of land in the metaverse. Virtual land developer Republic Realm purchased the property from video-game company Atari. <a href="https://markets.businessinsider.com/news/currencies/metaverse-property-sandbox-virtual-real-estate-deal-record-4-million-2021-11">It's the biggest metaverse property sale publicized to date</a>. 7. You've heard of ConstitutionDAO but what about Big Green DAO? Elon Musk's brother Kimbal Musk launched the crypto collective to disrupt the world of philanthropy and address food injustice. <a href="https://markets.businessinsider.com/news/currencies/elon-musk-brother-kimbal-musk-big-green-dao-food-inequality-2021-11">And Ark Invest's Cathie Wood is a contributor</a>. 8. Adagio Therapeutics extended a rally to over 300% in three days as Omicron emerged. Investors are betting the biotech company's antiviral drug candidate will offer protection against the variant. <a href="https://markets.businessinsider.com/news/stocks/adagio-stock-price-adgi-omicron-covid-variant-antiviral-adg20-antibody-2021-11">Adagio said it expects the drug, ADG20, to be effective</a>. 9. Real-estate investor Tony Javier bought and flipped his first house two decades ago. Since then, he's flipped about 1,000 houses and still owns about 100 rental units. <a href="https://www.businessinsider.com/real-estate-investing-strategy-wholesaling-fix-flip-rental-leverage-funding-2021-11">Find out how he leverages TV commercials and gap funding to increase profits</a>.10. Edward Ryan's stock-picking advice has grabbed Wall Street's attention. Ryan, author of "The World's Simplest Stock Picking Strategy," says investing is all about personal experiences. <a href="https://www.businessinsider.com/stock-picking-strategy-how-to-best-simple-returns-edward-ryan-2021-11">Here are his 15 favorite stocks right now</a>.

10 things before the opening bell

Welcome to <keyword id="11937554" type="UNKNOWN" weightage="60" keywordseo="10-things" source="Orion">10 Things</keyword> Before the Opening Bell.If this was forwarded to you, <a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell">sign up here.</a> Plus, download Insider's app for news on the go – <a href="https://apps.apple.com/app/apple-store/id554260576?pt=385758&amp;ct=06292021_newsletters&amp;mt=8">click here for iOS</a> and<a href="https://play.google.com/store/apps/details?id=com.freerange360.mpp.businessinsider"> here for Android</a>.Let's jump in. 1. Federal Reserve rate hikes won't scupper the stock market rally. Investors' fears may be overblown as they brace for US policymakers to raise interest rates next year, <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-fed-interest-rate-hikes-wont-derail-rally-2021-11">according to DataTrek Research</a>.<a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-2022-bad-year-investors-fed-interest-rates-2021-10?utm_medium=ingest&amp;utm_source=markets">Traders have been conditioned</a> to believe equities perform poorly when the Fed hikes rates — but the S&amp;P 500 has only had two losing years in the last 30 when the central bank was lifting rates. So <a href="https://www.datatrekresearch.com/">DataTrek</a> thinks investors shouldn't be too concerned. "There are plenty of reasons to be skittish on US large caps (valuation chief among them) but Fed rate hikes aren't at the top of our list," DataTrek co-founder Nicholas Colas said in a note.Here's what else to keep in mind:<ul><li>October's Consumer Price Index data showed <a href="https://www.businessinsider.com/inflation-report-october-cpi-scarier-runaway-price-growth-transitory-outlook-2021-11?utm_medium=ingest&amp;utm_source=markets">inflation hit its highest rate since 1990.</a></li><li>Consumer sentiment is at a <a href="https://markets.businessinsider.com/news/stocks/consumer-sentiment-10-year-low-stocks-housing-economy-hit-records-2021-11">10-year low</a>.</li><li>Some analysts warn of <a href="https://www.businessinsider.com/stock-market-crash-warning-fed-tapering-rate-hike-fs-investments-2021-11">multiple pullbacks</a> if the <a href="https://www.businessinsider.com/stock-market-crash-bubble-inflation-sp500-expert-next-months-hunter-2021-11">Fed tightens policy too soon.</a></li></ul>2. US stocks are holding up, though COVID-19's resurgence in Europe has investors wary. Optimism about the US economic recovery abounds for now, but Fed minutes later in the week could dent that. <a href="https://markets.businessinsider.com/news/stocks/stock-market-today-us-futures-economy-sp500-dow-europe-coronavirus-2021-11">Here are the latest moves on the market</a>.3. Two college friends who co-own 200 rental units use the "1% rule" to decide whether to invest. They say monthly rent should be at least 1% of the purchase price — a rule that has helped them acquire properties across Massachusetts and Connecticut. <a href="https://www.businessinsider.com/real-estate-investing-how-to-be-profitable-factors-rental-unit-2021-11">They shared five tips for people looking to get into real-estate investing. </a>4. Earnings on deck: <a href="https://finance.yahoo.com/news/preview-expect-zoom-earnings-monday-134854385.html">Zoom Video Communications</a>, Spire, and Urban Outfitters, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting.</a>5. A majority of Gen Z investors think crypto will make them millionaires. The idea of gaining wealth from crypto comes from factors like the rising cost of real estate and a college education, an expert told Insider — <a href="https://markets.businessinsider.com/news/currencies/gen-z-crypto-survey-bitcoin-ether-dogecoin-cryptocurrency-investing-2021-11">"This generation has a greater acceptance and comfort with all things digital."</a>6. Elon Musk has sold nearly $9 billion worth of Tesla stock in two weeks. But he's only halfway toward selling 10% of his stake, as he promised in his Twitter poll. Read about the theories for what's behind Musk's selling spree —<a href="https://markets.businessinsider.com/news/stocks/elon-musk-tesla-stock-sales-halfway-twitter-poll-pledge-2021-11"> including what "Big Short" investor Michael Burry thinks. </a>7. Citadel's Ken Griffin outbid a group of 17,000 crowdfunders who pitched in millions to buy an original copy of the US Constitution. The crypto fans formed a <a href="https://markets.businessinsider.com/news/currencies/what-is-a-dao-constitutiondao-bid-sothebys-us-constitution-auction-2021-11">DAO, a decentralized autonomous organization</a>, and they raised $46 million in ether. But Griffin beat them singlehandedly in an auction —<a href="https://markets.businessinsider.com/news/currencies/ken-griffin-us-constitution-outbid-crypto-group-constitutiondao-43-million-2021-11"> and now plans to lend the rare document to a museum.</a>8. Binance's CEO is buying his first home in crypto-friendly Dubai. Some see this as a hint to where the crypto exchange may eventually establish its headquarters. <a href="https://markets.businessinsider.com/news/currencies/binance-ceo-dubai-home-headquarters-us-public-funding-round-cz-2021-11">Binance boss CZ also confirmed its US affiliate will soon close a multimillion-dollar funding round. </a>9. Fund manager Alex Ely has beaten 96% of his peers in the past five years. He told Insider that he's doubling down on investing in innovative, "disruptive" companies that he thinks are set to grow in 2022. <a href="https://www.businessinsider.com/stocks-to-buy-growth-disruption-innovation-value-top-fund-manager-2021-11">These are the 16 stocks he's most bullish on.</a>10. Five crypto experts explained what's behind the recent bitcoin sell-off. The <a href="https://markets.businessinsider.com/news/currencies/bitcoin-inflation-hedge-digital-gold-volatility-diversifier-crypto-institutions-2021-11">token slid</a> after hitting an all-time high, and one analyst said investors' profit-taking created a dip. Here's what other experts said — <a href="https://www.businessinsider.com/altcoins-to-buy-metaverse-gaming-tokens-bitcoin-ethereum-price-correction-2021-11">and why they are eyeing these four metaverse and gaming altcoins.</a>Compiled by Phil Rosen. Feedback? Email <a href="mailto:prosen@insider.com">prosen@insider.com</a> or tweet <a href="https://twitter.com/philrosenn">@philrosenn</a>.Sign up for <a href="https://www.businessinsider.com/subscription/newsletter">more Insider newsletters here</a>.

<a href="http://markets.businessinsider.com/stock/UAL-Quote">REUTERS/Louis Nastro</a><a href="http://markets.businessinsider.com/stock/UAL-Quote">United Continental</a> is set to report first-quarter earnings after Monday's closing bell amid the backlash that followed a <a href="http://www.businessinsider.com/united-passenger-dragged-off-police-2017-4">passenger's removal</a> last week Sunday.Analysts forecast that the company earned $0.38 in adjusted earnings per share and operating revenue of $8.83 billion, according to Bloomberg.The highlight of these results is likely to be the earnings call on Tuesday when analysts get to hear more from executives on the business and last week's incident. Law enforcement officers dragged Dr. David Dao off a plane on Sunday April 9 after he was asked and refused to give up his seat for crew members even after an offer of $800 in exchange.Investors initially shrugged off the outcry, but sold shares as the video of a bloodied Dao spread globally on social media. The stock fell 2.6% last week. That was a muted reaction considering its 21% rally in the prior 12 months, far outpacing shares of Delta and American Airlines. United dealt with more controversy over the weekend after a couple headed to their wedding in Costa Rica claimed they were <a href="http://www.businessinsider.com/united-airlines-responds-couple-claims-kicked-off-flight-houston-costa-rica-2017-4">removed from a flight</a>. The airline said they had tried to seat in a class they did not pay for. Because the now-viral incident happened in April, any impact that <a href="http://www.businessinsider.com/united-airlines-doctor-removed-boycott-2017-4">#BoycottUnited</a> and other protest action has on sales would only really show in the second-quarter earnings due about three months from now. Last week, United Airlines raised its full-year outlook for capacity growth to a 2.5%-3.5% range, up from 1%-2%. Wall Street will be looking out for the impact of fuel and labor costs on United's first-quarter performance, Bloomberg noted. <a href="http://www.businessinsider.com/united-airlines-earnings-stock-q1-2017-2017-4">More to come ... </a> <h3>NOW WATCH: <a href="http://www.businessinsider.com/timeline-of-a-crisis-how-uniteds-passenger-bumping-debacle-unfolded-2017-4">Timeline of a crisis: How United's passenger-bumping debacle unfolded</a></h3> Please enable Javascript to watch this video

Here comes United Airlines ...

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Torsten Blackwood/Getty ImagesMarket concentration in the form of monopolies and oligopolies results in a "fake capitalism," argue the authors of "The Myth of Capitalism."</div></div></div><ul class="summary-list"><li>The following book excerpt is an adaptation of the introduction to "<a href="https://www.amazon.com/Myth-Capitalism-Monopolies-Death-Competition/dp/1119548195">The Myth of Capitalism: Monopolies and the Death of Competition</a>," by <a href="https://www.variantperception.com/">Variant Perception</a>'s founder Jonathan Tepper and head of business development Denise Hearn.</li><li>The authors argue that an increase in market concentration across the United States has resulted in a system that is not true capitalism, since freedom is being restricted.</li><li>They believe that updating antitrust regulations should be an issue both the left and right could unite around.</li><li>This article is part of Business Insider's ongoing series on <a href="https://www.businessinsider.com/better-capitalism">Better Capitalism</a>.</li></ul>On April 9, 2017, police officers from Chicago's O'Hare Airport removed Dr. David Dao from United Express Flight 3411.The flight was overbooked, but he refused to give up his seat. He had patients to treat the next day. Fellow passengers recorded a video of him being dragged off the plane. You could hear gasps of disbelief from fellow passengers.In the video he could be seen bleeding from the mouth as police dragged him down the aisle. The video quickly went viral. Eventually, the outrage was so great that the CEO apologized and the airline reached an undisclosed settlement with Dr. Dao.Years ago, such a public relations disaster would have caused United's stock to stumble, but it quickly recovered. Financial analysts agreed that it would have no effect on the airline. Once investors started focusing on United's dominant market position, the stock price, in fact, went up.The analysts were right. The American skies have gone from an open market with many competing airlines to a cozy <a href="https://www.investopedia.com/terms/o/oligopoly.asp">oligopoly</a> with four major airlines. They have the landing slots, and they are willing to engage in predatory pricing to keep out any new entrants. At 40 of the 100 largest US airports, a single airline controls a majority of the market.The United episode became a metaphor for American capitalism in the twenty-first century. A highly profitable company had bloodied a consumer, and it didn't matter because consumers have no choice.<h2>Something is broken</h2>All around the world, people have an overwhelming sense that something is broken. This is leading to record levels of populism in the United States and Europe, resurgent intolerance, and a desire to upend the existing order. The left and right cannot agree on what is wrong, but they both know that something is rotten.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Wiley</div></div></div>Capitalism has been the greatest system in history to lift people out of poverty and create wealth, but the "capitalism" we see today in the United States is a far cry from competitive markets. What we have today is a grotesque, deformed version of capitalism.According to the dictionary, the idealized state of capitalism is "an economic system based on the private ownership of the means of production, distribution, and exchange, characterized by the freedom of capitalists to operate or manage their property for profit in competitive conditions."Parts of this definition have universal appeal today, but the harder part is the last section. The battle for competition is being lost. Industries are becoming highly concentrated in the hands of very few players, with little real competition. Capitalism without competition is not capitalism.Read more: <a href="https://www.businessinsider.com/joseph-stiglitz-says-the-us-has-a-major-monopoly-problem-2018-9">Nobel Prize-winning economist Joseph Stiglitz says the US has a major monopoly problem</a>Competition matters because it prevents unjust inequality, rather than the transfer of wealth from consumer or supplier to the monopolist. It creates clear price signals in markets, driving supply and demand. It promotes efficiency. It creates more choices, more innovation, economic development and growth, and a stronger democracy by dispersing economic power. It promotes individual initiative and freedom.An absence of competition means an absence of evolution, a failure to adapt to new conditions. It threatens our survival.<h2>This affects all of us</h2>If you believe in competitive free markets, you should be very concerned. If you believe in fair play and hate cronyism, you should be worried. With fake capitalism, CEOs cozy up to regulators to get the kind of rules they want and donate to get the laws they desire. Larger companies get larger, while the small disappear, and the consumer and worker are left with no choice.The list of industries with dominant players, from beer corporations to internet providers, is endless. It gets even worse when you look at the world of technology. Laws are outdated to deal with the extreme winner-takes-all dynamics online. Google completely dominates internet searches with an almost 90% market share. Facebook has an almost 80% share of social networks. Both have a duopoly in advertising with no credible competition or regulation.Amazon is crushing retailers and faces conflicts of interest as both the dominant e-commerce seller and the leading online platform for third-party sellers. It can determine what products can and cannot sell on its platform, and it competes with any customer that encounters success. Apple's iPhone and Google's Android completely control the mobile app market in a duopoly, and they determine whether businesses can reach their customers and on what terms.Read more: <a href="https://www.businessinsider.com/reid-hoffman-tech-giants-growth-reconsider-roles-in-society-2019-1">Billionaire tech investor Reid Hoffman said the explosive growth of tech giants like Facebook has led to major problems, but warns that regulation may not be an easy fix</a>Existing laws were not even written with digital platforms in mind. So far, these platforms appear to be benign dictators, but they are dictators nonetheless.It was not always like this. Without almost any public debate, industries have now become much more concentrated than they were 30 and even 40 years ago.After the dot-com bust, the economy rebounded but growth was more anemic than during the 1980s or even 1990s. After the financial crisis, growth was even more pathetic. Each expansion has experienced lower growth than the previous one. There is not one variable that answers all questions, but a growing mountain of research shows that less competition has led to lower wages, fewer jobs, fewer startups, and less economic growth.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Andy Kiersz/Business Insider</div></div></div><h2>It's not too late to save capitalism</h2>Capitalism is a game where competitors play by rules that everyone agrees. The government is the referee, and just as you need a referee and a set of agreed rules for a good basketball game, you need rules to promote competition in the economy. Left to their own devices, firms will use any available means to crush their rivals. Today, the state, as referee, has not enforced rules that would increase competition, and through regulatory capture has created rules that limit competition.In 1776 Adam Smith wrote "<a href="https://www.amazon.com/Wealth-Nations-Penguin-Classics-Bks-1-3/dp/0140432086/ref=tmm_pap_swatch_0">The Wealth of Nations</a>," and the Continental Congress declared independence from Britain. Smith complained bitterly about monopolies. He wrote of the East India Company: "the monopoly which our manufacturers have obtained . . . has so much increased the number of some particular tribes of them, that, like an overgrown standing army, they have become formidable to the government, and upon many occasions intimidate the legislature."That same year, among the reasons the American Continental Congress cited for separating from Britain in the Declaration of Independence, was, "For cutting off our Trade with all parts of the world: For imposing Taxes on us without our Consent." The Boston Tea Party was in response to the East India Company's monopoly on tea. The Wealth of Nations and the Declaration of Independence were bold statements against the abuses of monopoly power. Americans wanted entrepreneurial freedom to build businesses in a free market.Today, we need a new revolution to cast off monopolies and restore free trade.This excerpt is adapted with permission from "<a href="https://www.amazon.com/Myth-Capitalism-Monopolies-Death-Competition/dp/1119548195">The Myth of Capitalism: Monopolies and the Death of Competition</a>" (2018) by Jonathan Tepper and Denise Hearn, from Wiley. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/the-world-economic-forum-founder-shares-the-biggest-threat-to-the-economy-davos-2019-1">The founder of the World Economic Forum shares what he sees as the biggest threat to the global economy</a></h3> <div> </div> </div>

Big companies are crushing their competition in the US, and it's creating a dangerous 'fake capitalism' that hurts workers and consumers

<a href="http://www.gettyimages.com/license/71300027">Spencer Platt/Getty Images</a>Berkshire Hathaway, the largest owner of United Continental Holdings shares, lost up to $58.5 million as the stock fell on Tuesday.That's a lot of money for most of us, but not for Warren Buffett, Berkshire's chairman, who is worth $75 billion according to Bloomberg. Berkshire owns 28.9 million United shares, or about 9% of all outstanding shares, according to Bloomberg. As of Monday's close, that stake was worth $2.07 billion. United's shares fell by up to 4% as a <a href="http://www.businessinsider.com/video-shows-passenger-forcibly-dragged-off-united-airlines-plane-2017-4">video</a> filmed on Sunday showing a passenger being <a href="http://www.businessinsider.com/united-airlines-passenger-dragged-from-flight-name-2017-4">dragged off one of the airline's flights</a> went viral. The airline had offered $1,000 to make room for crew members after the <a href="http://www.businessinsider.com/how-airline-choose-who-kick-off-flight-united-american-delta-2017-4">flight was overbooked</a>. David Dao, 69, refused to give up his seat and was removed. Investors shrugged the initial backlash on Monday, but caused a sell-off on Tuesday as the video spread around the world and in China, United Airline's <a href="http://www.marketwatch.com/story/united-airlines-could-pay-dearly-in-china-as-passenger-dragging-video-spreads-2017-04-11">largest source of revenue outside the US</a> according to FactSet. Berkshire added to its <a href="http://www.businessinsider.com/berkshire-hathaway-13-f-buffett-q4-2016-2017-2">stakes in various airlines</a> including Southwest and Delta during the fourth quarter, according to a 13-F filing published in February.The filings, required of large investment firms, have a time lag and so do not necessarily reflect their updated holdings. Also, it's possible that Berkshire's stake reflected in the data changed before or after the video went viral.Before Berkshire loaded up on airlines, <a href="http://www.businessinsider.com/warren-buffett-blasted-the-airline-industry-before-investing-billions-in-it-2017-3">Buffett criticized them</a> as money losers vulnerable to competition from low-cost carriers.<a class="zoomin" href="https://static-ssl.businessinsider.com/image/58ed220e8af578501f8b4f9f-960/screen shot 2017-04-11 at 23529 pm.png"></a><a href="http://markets.businessinsider.com/stock/UAL-Quote">Markets Insider</a> <h3>NOW WATCH: <a href="http://www.businessinsider.com/united-airlines-plane-video-incident-twitter-reactions-2017-4">People on Twitter are roasting United Airlines after a passenger was forcibly dragged off a plane</a></h3> Please enable Javascript to watch this video

Warren Buffett's Berkshire Hathaway lost up to $58.5 million after the United debacle

<a href="https://www.flickr.com/photos/aero_icarus/6298494626">Flickr/aero_icarus</a>United Airlines Boeing 747-400.On Thursday, <a href="http://markets.businessinsider.com/stock/UAL-Quote">United Airlines</a>' pilots broke their silence on the violent removal of David Dao from Flight 3411."The safety and well-being of our passengers is the highest priority for United pilots, and this should not have escalated into a violent encounter," United Master Executive Council, the union representing the airline's 12,500 pilots, wrote in a letter. "United pilots are infuriated by this event." At the same time, the pilots wanted to the set record straight on some of the facts surrounding the event. "This occurred on one of our contracted Express carriers, separately owned and operated by Republic Airline, and was ultimately caused by the grossly inappropriate response by the Chicago Department of Aviation," the pilots wrote.The disturbing incident and its accompanying cellphone footage has placed the Chicago-based airline at the center of an avalanche of anger, criticism, and ridicule.The public fury was further stoked by <a href="http://www.businessinsider.com/united-airlines-ceo-letter-employee-2017-4" target="_blank">a pair of poorly worded statements from CEO Oscar Munoz</a>. Munoz <a href="http://www.businessinsider.com/united-airlines-ceo-apologize-customer-2017-4" target="_blank">did not issue a true apology to Dao</a> until days later. On Thursday, <a href="http://www.businessinsider.com/united-airlines-major-changes-response-dao-2017-4" target="_blank">the airline </a><a href="http://www.businessinsider.com/united-airlines-major-changes-response-dao-2017-4" target="_blank">promised to make</a> significant changes at the airline along with a sweeping review of the policies governing customer relations, employee training, and the handling of oversold flights. United has committed to refrain from involving law enforcement in the removal passengers from flights unless "it is a matter of safety and security."Here is the statement from United Airlines' pilots in its entirety:"As the story of United Express Flight 3411, operated by Republic Airline, continues to virally circulate in the news and on social media, your United Master Executive Council (MEC) has intentionally withheld judgment because of the rapid pace at which information, both accurate and inaccurate, has been released and manipulated. The safety and well-being of our passengers is the highest priority for United pilots, and this should not have escalated into a violent encounter. United pilots are infuriated by this event. This occurred on one of our contracted Express carriers, separately owned and operated by Republic Airline, and was ultimately caused by the grossly inappropriate response by the Chicago Department of Aviation. It is important to review these baseline facts: 1. This violent incident should never have happened and was a result of gross excessive force by Chicago Department of Aviation personnel. 2. No United employees were involved in the physical altercation. 3. Social media ire should properly be directed at the Chicago Aviation Department. 4. This occurred on an Express flight operated by Republic Airline, as such, the flight crew and cabin crew of Flight 3411 are employees of Republic Airline, not United Airlines. 5. United Airlines CEO Oscar Munoz has apologized for United Airlines, the actions of the Chicago Department of Aviation, and the actions of our Express partner, Republic Airline. On April 9, 2017, United Express Flight 3411, operated by Republic, was preparing to depart Chicago O'Hare (ORD) to Louisville (SDF). Republic Airline made the decision to assign four of their crewmembers to deadhead on Flight 3411 within minutes of the scheduled departure. Although four passengers would have to be removed from this flight to accommodate the Republic crew, the goal was to get the other 70 passengers on their way to SDF and ensure a flight crew needed the next day would also be in place. By all reports, the Republic flight crew was courteous and calm throughout the event, and three passengers left the flight voluntarily for compensation. After repeatedly asking the fourth passenger to give up his seat to no avail, the gate agent requested the assistance of law enforcement. For reasons unknown to us, instead of trained Chicago Police Department officers being dispatched to the scene, Chicago Department of Aviation personnel responded. At this point, without direction and outside the control of United Airlines or the Republic crew, the Chicago Department of Aviation forcibly removed the passenger. Members of local airport law enforcement are normally important security partners who assist aircrews in ensuring the safety of everyone on the airplane. This event was an anomaly and is not how United or the police are expected to treat passengers when there is no security threat. United pilots have always been the true leaders of this company, and our fellow employees count on us to continue to do what we do best-deliver a world class product and safely transport our passengers around the world. We cannot let this huge distraction affect our ability to do our jobs. We have successfully flown through more turbulent times, and we will weather this storm as well. Ultimately, United must be measured by more than this one incident on a single United Express flight; this airline is comprised of more than 82,000 employees, including over 12,500 pilots, working every day to safely fly around the globe. For 91 years, United has earned the trust of millions of passengers, and we will continue earning their trust, despite the incident on this United Express flight. The United Airlines MEC is confident that the steps we are taking as a company will ensure this type of inexcusable event never happens again." <h3>NOW WATCH: <a href="http://www.businessinsider.com/snaphat-tech-stock-buy-sell-henry-blodget-2017-4">How to know if Snapchat stock is a buy or a sell</a></h3> Please enable Javascript to watch this video

'Infuriated' United pilots union slams cops for forcibly dragging passenger from plane

Scott Olson/Getty ImagesUnited's response to the incident sparked a backlash.Recently, United Airlines hit some major turbulence after a video emerged of a passenger <a href="http://www.businessinsider.com/video-shows-passenger-forcibly-dragged-off-united-airlines-plane-2017-4">being forcibly dragged from a flight</a>.The company's response to the incident further ignited public anger and even <a href="http://www.businessinsider.com/united-airlines-doctor-removed-boycott-2017-4">calls for a boycott</a>.United CEO Oscar Munoz initially <a href="http://www.businessinsider.com/united-response-to-passenger-dragged-from-plane-2017-4">apologized</a> for having to "re-accommodate" the affected customer - who was left bloodied after being seized and pulled off of the overbooked flight. Subsequently, Munoz released <a href="http://www.businessinsider.com/united-airlines-ceo-letter-employee-2017-4">an open letter</a> to employees offering his support for United staffers and calling the customer "disruptive and belligerent."The damage was already done by the time that Munoz, who had <a href="http://www.businessinsider.com/united-airlines-ceo-response-award-pr-week-communicator-2017-4">won a prestigious communications award</a> just weeks before the incident, <a href="http://www.businessinsider.com/united-airlines-ceo-apologize-customer-2017-4">released another statement</a> officially apologizing to the passenger, Dr. David Dao. United's <a href="http://markets.businessinsider.com/news/stocks/united-airlines-taking-hit-after-forcibly-kicking-passenger-off-plane-2017-4-1001913476-1001913476">stock took a hit</a> in the aftermath, but <a href="http://markets.businessinsider.com/news/stocks/ubs-on-united-continentals-stock-price-2017-4-1001918343">analysts expect it to rebound</a>.So, how should have Munoz and United responded to the initial fallout (especially since, as Business Insider's Bob Bryan <a href="http://www.businessinsider.com/united-airlines-passenger-dragged-from-plane-economic-reason-2017-4">reported</a>, similar incidents could probably still happen in the future)? How can other leaders and companies avoid a similar misstep?According to management expert and "<a href="https://www.amazon.com/Difference-When-Good-Enough-Isnt/dp/0451496213">The Difference: When Good Enough Isn't Enough</a>" author Subir Chowdhury, just apologizing in the beginning would have been a far better strategy."Any true leader should be able to apologize," Chowdhury told Business Insider. "There's nothing wrong with apologizing. People do make mistakes. It is not an ego game."However, he cautions, this course of action only applies to situations where a company or individual worker is clearly in the wrong. For example, he said, Whole Foods was right to <a href="http://www.businessinsider.com/whole-foods-is-suing-a-gay-pastor-2016-4">stand by its employees</a> after security footage showed that a customer had <a href="https://www.nytimes.com/2016/05/17/us/gay-pastor-apologizes-after-accusing-whole-foods-of-writing-slur-on-chocolate-cake.html?_r=0">falsely accused</a> them of putting a homophobic statement on a cake in the summer of 2016.But when you're at fault, beyond a doubt? Time to brace yourself.He broke down a few major lessons other leaders can glean from the debacle:<h2>Be thoughtful</h2>When something happens and it becomes clear that your team or organization is clearly at fault, it's not time to get defensive.Instead, be thoughtful. That means effectively listening to the aggrieved parties and trying to form some empathy for them."When I use the word thoughtfulness, I'm not saying that each leader needs to become Mother Teresa," Chowdhury said. "It means putting yourself into that person's shoes before you respond."<h2>Take responsibility straightaway</h2>"For any true, good leader, whenever a major problem happens, the number one thing to do is take complete accountability," Chowdhury said.He said that goes double for firms within service industries, like United Airlines. Chowdhury points to the example of GM CEO Mary Barra, who <a href="http://www.businessinsider.com/gm-ceo-mary-barra-takes-responsibility-for-broken-culture-2014-9">took full responsibility</a> after the auto company was forced to recall millions of vehicles in February 2014 due to faulty ignition switches. She also apologized the victims of accidents caused by the vehicles, <a href="https://www.bloomberg.com/news/articles/2014-04-01/the-one-important-thing-gm-ceo-mary-barra-told-congress">as Bloomberg reported</a>.The key thing is timing. Accepting full responsibility after directing blame at other parties just won't ring true."Right now, it doesn't matter what the United CEO does," Chowdhury said. "Everyone thinks that he's apologizing now because his company's profits are going down." <h3>NOW WATCH: <a href="http://www.businessinsider.com/united-airlines-ceo-apologizes-passenger-not-to-blame-oscar-munoz-david-dao-oscar-munoz-2017-4">United Airlines CEO apologizes after initially calling the passenger 'disruptive' and 'belligerent'</a></h3> Please enable Javascript to watch this video

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