The incident took place on a Kentucky-bound flight April 9 between Dao and members of the Chicago Department of Aviation officers after he was removed to free up space for members of the staff. After his ordeal went viral, the airline's practices were magnified and mocked on social media.
One of Dao's attorneys had kind things to say about United CEO Oscar Munoz, who "said he was going to do the right thing, and he has", explained attorney Thomas Demetrio.
Calling his client "the unintended champion" for airline changes, Demetrio hoped other airlines would follow United's lead and reevaluate their procedures.
Charles Hobart, a spokesperson for the airline, also confirmed the agreement, telling the Times, "We are pleased to report that United and Dr. Dao have reached an amicable resolution of the unfortunate incident that occurred aboard flight 3411".More news: Being US President 'big burden on the family'
While the treatment of Dao is unacceptable, his removal - depending on what further information may surface over time - seems to be justified per United's contract of carriage. He suffered a concussion, a broken nose, and lost two of his teeth because of the incident.
The settlement comes as United announced a new incentive for passengers to voluntarily give up seats on overbooked flights.
And, Delta Airlines was first to raise to USD10,000 the amount it would pay for volunteers to get off overbooked flights.
Southwest Airlines also said on Thursday that it would end overbooking of flights.More news: Jets not exercising S Calvin Pryor's fifth-year option
"Every customer deserves to be treated with the highest levels of service and the deepest sense of dignity and respect", Mr Munoz said in announcing the airline carrier's change in policy. The officers who dragged Dao off the plane worked for the city. After no one offered to give up their seats, airline personnel chose four seats at random - one of which was Dao's. United has since promised it will no longer use officers to forcibly remove paying customers from flights.
As per the Independent, the Airlines have reached a settlement for an undisclosed sum with the passenger.
As previously reported, Dao was seated on a flight scheduled to leave from Chicago to Louisville on April 9, when airline personnel announced that they needed volunteer passengers to give up their seats so that commuting crew members could make their connecting flights.More news: Clinton blames sexism, self, FBI for loss