The effects of negative reputational contagion on international airlines: The case of the Boeing 737-MAX disasters

Collings, David G.; Corbet, Shaen; Hou, Yang; Larkin, Charles; Oxley, Les

doi:10.1016/j.irfa.2022.102048

Cited by 11 publications

(3 citation statements)

References 73 publications

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“…The Boeing 737-MAX crisis has had negative effects on airlines, one of the important stakeholders of this industry, which were caught unprepared for the first crash but gradually realized the wider industry consequences after the second disaster. Crises in the industry are a potential source of errors that spread across airlines in connection with the internal practices and decision-making processes of the relevant company (Collings et al, 2022). The result of the research conducted on Lion Air Company after the accidents showed that the aviation industry should have a special foresight program to eliminate the loss of reputation caused by accidents.…”

Section: Discussionmentioning

confidence: 99%

“…The internal practices and decision-making processes of a stakeholder in the air transport industry also affect other stakeholders (Collings et al, 2022). When examining the latent conditions of failure associated with the human and organizational factors involved in this crisis, erroneous decisions made at higher levels of the system are striking.…”

Section: Limitations Of the Study And Recommendationsmentioning

confidence: 99%

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Reflections of The Strategies Applied in the Boeing 737-Max Crisis Management on Passenger Perception

Güngör

2023

isarder

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Purpose ⎯Following the two crashes in Indonesia in 2018 and Ethiopia in 2019, resulting in 346 casualties, Boeing 737-Maxs became a global safety crisis. Boeing has pursued crisis strategies to restore brand trust. This study aims to ascertain whether Turkish passengers are concerned about the safety of Boeing 737-Maxs following two deadly plane crashes and whether they favor airlines that continue to use 737-Maxs. Methodology ⎯In this study, the structured interview research method is adopted to reveal the participants' perceptions of Boeing 737-Maxs. The research sample comprised "Turkish passengers who had no fear of flying" and "who had heard about Boeing 737-Max accidents". A total of 14 interview questions were extracted by reviewing the literature. In this study, interviews were conducted with 32 people. The data collected were subjected to content analysis. Findings ⎯The Boeing 737-Max is considered unsafe by 10 out of 20 men and 11 out of 12 women (or 50% and 92%, respectively). 66% of the participants believe that the Boeing 737-Max is an unsafe airplane. The participants, who had not previously heeded the type of aircraft they flew or heard about Boeing, started to pay attention to the type of aircraft type or identified Boeing with these accidents. Discussions⎯Even though Boeing fixed the issue and resumed flying its aircraft, it is concluded that unfavorable opinions of passengers, who are one of its key stakeholders, persisted.

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Section: Discussionmentioning

confidence: 99%

Section: Limitations Of the Study And Recommendationsmentioning

confidence: 99%

Reflections of The Strategies Applied in the Boeing 737-Max Crisis Management on Passenger Perception

Güngör

2023

isarder

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“…The researchers also assess the impact of the social media index that contributed to the stock decline, with the impacts on market valuation following immediately after the second crash of Ethiopian Airlines 302. Collings et al [21] provide significant evidence of an interaction between Boeing´s stock price and airlines with large orders for 737-MAX aircraft, particularly in the case of low-cost carriers and leasing companies. The estimates of DCCGARCH are consistent investor response to the second crash and subsequent impact both on suppliers and customers of this aircraft manufacturer.…”

Section: Literature Researchmentioning

confidence: 99%

Impact of covid pandemic on market valuation of largest aircraft manufacturers

Šuleř

Vrbka

2023

Acta Avionica

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The COVID-19 pandemic has significantly affected the global economy, with a significant impact on the transport sector. It also directly influenced the market valuation of the most important aircraft manufacturers – Boeing and Airbus. Our research shows how investors responded to the spread of the disease and increased market risk. In the case of sudden events, such as serious accidents, investors react immediately, while in the case of the pandemic, despite its global scale, the reaction of investors was delayed, with an impact on the current development of the pandemic in the countries where trading takes place. The risk is thus underestimated at the beginning of the pandemic, which is followed by panic shopping and selling at the moments when the pandemic peaks in the USA and EU. It has also been found that it is not possible to reduce the risk of investment diversification between those companies that react very similarly to the threat of pandemic. Based on the correlation between the trend of share prices of the above aircraft manufacturers and the number of ill people, it can be stated that investors do not effectively take advantage of opportunities to reduce risk and increase returns in this area. The paper also presents further research in the field of the impacts of the pandemic and further global development.

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Resilience Strategies of Aviation During COVID-19 – A Bibliographical Review

Lu,

Yin,

2023

Lecture Notes in Computer Science

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The effects of negative reputational contagion on international airlines: The case of the Boeing 737-MAX disasters

Cited by 11 publications

References 73 publications

Reflections of The Strategies Applied in the Boeing 737-Max Crisis Management on Passenger Perception

Reflections of The Strategies Applied in the Boeing 737-Max Crisis Management on Passenger Perception

Impact of covid pandemic on market valuation of largest aircraft manufacturers

Resilience Strategies of Aviation During COVID-19 – A Bibliographical Review

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