United evicted Dao and three other passengers from the flight to make room for employees. "This ensures situations like Flight 3411 never happen again".
The treatment of Dao sparked worldwide outrage, as well as multiple apologies from the carrier, and raised questions about the overbooking policies of airlines.
"This is one of our initial steps in a review of our policies to deliver the best customer service", Schmerin said.
United initially said Dr Dao's flight, from Chicago's O'Hare International Airport to Louisville, Kentucky, was overbooked, and its staff picked passengers to be bumped.
Under a new policy, which is meant to avoid future public relations disasters like the one the world witnessed earlier this week, airline crews are required to check in at least an hour before a flight leaves, the airline company said.More news: Pence: US won't rest until N. Korea gives up nuclear weapons
"A commercial airline that removes validly seated customers without serious cause breaches the sacred trust between passengers and their airlines", the bill said. He also plans to sue United and the city of Chicago, who employs the airport police, his lawyer said.
For Dao, who came to the US after fleeing Vietnam by boat in 1975 when Saigon fell, being dragged off the plane "was more horrifying and harrowing than what he experienced in leaving Vietnam", Demetrio said. Two other officers have been placed on leave. It added that it stands behind Chief Executive Oscar Munoz, who has been under fire in the wake of the incident. Dao was one of those, and when he refused to leave his seat - he cited needing to see patients in the morning - United called security, who violently removed him. Munoz himself said on Wednesday that he had left a message for Dao.
Dao's lawyer said in a news conference Thursday that the Kentucky physician and father of five will need reconstructive surgery to fix a broken nose and two knocked-out teeth.
The company also repeated its apologies, saying Munoz had reached out to Dao "on numerous occasions".
Thomas Demetrio, attorney for the passenger David Dao, said on Saturday due to the agreement, a court hearing which was scheduled for next week will not take place, Xinhua news agency reported.