A few months after the disappearance of MH370, another Malaysia Airlines (MAS) passenger flight MH17, was shot down by rogue elements near the Ukrainian-Russian border killing all 283 passengers and 15 crew on board. Following two back-to-back crises in such a short period, MAS is facing a serious threat to their reputation and organizational image – MAS is in crisis. Reputation and image are critical to any organization, and in order to recover from a crisis, it is of utmost importance to communicate appropriately. Communicating during a crisis is even seen as the very rationale of public relations, in fact, most public relations programs are developed either to prevent a crisis or to recover from a crisis (Fearn-Banks, 2001, p.479). As a consequence, crisis communication is a major competence that any organization should
Who will be the one to get the empty seat on the flight, and why? 974 How would you move a customer who was not allowed to sit in an exit row? 975 You're on a flight that is sitting on the runway delayed, waiting for take-off. Multiple passengers are ringing their bell becoming very frustrated and concerned that they will miss their connecting flights. How do you handle this situation?
The approached of the employees and crews of the airline did not meet the standards for the safety and security of its passengers. The problem is very visible when the FA’s themselves fainted, yet it is their major responsibility to calm and accommodate the passengers during problems on the airplane. Also, the pilots who have failed to check their units before the flight. Some problems have also arisen when they rerouted to Nashville, they failed to offer accommodation to their delayed passengers. The passengers waited too long until they got home unsatisfied and extremely angry with the
The 150 miles overflown could’ve lead to the airplane running out of gas putting a number of passengers in danger, all because these pilots were inattentive. Why would these pilots sit there on their laptop instead of insuring the plane gets to it’s destination safely? This activity is the reason why certain things happen when it could have clearly been avoided. Equally important, is how airline employers should schedule their employees to get the amount of rest needed for any
All orders for A380-F were cancelled as an extreme negative affect was made for delivery timings due to the delivery delay of A380. Customers of A380-F had another alternative which was Boeing 747 freighters. Therefore Airbus had no choice but to delay the work on its A380-F. On 26 March 2006, the A380 went under the evacuation certification test in Hamburg with a total of 853 mixed passengers and 20 crew members and they all had to exit the aircraft in less than the 90 seconds which was required time for certification and they evacuated within 78
This has also had its impact on Lufthansa. Earlier this year the strikes in Lufthansa made it to a new level and pilots were striking, causing severe losses for Lufthansa. To bring in some fresh news on the area, late September 2014, Lufthansa pilots resumed strikes. The pilots press to maintain their retirement benefits, which is clear example of some of the challenges Lufthansa is meeting in when trying to increase profits, by decreasing costs and smoothening the business. Lufthansa and the employed pilots have spent weeks negotiating the compensation scheme and also the time the flight captains leave and their official retirement age.
Although the company is not entirely to blame for these major tragedies, the damage to its reputation cannot be undone. For example, aviation brand consultant Johnny Clark said that in the eyes of the public, "it's the company that was flying the plane that crashed – in this case, Malaysia Airlines" (West, 2014). In the case of MH370, sales plummeted especially in China, with customers opting to fly with rival operators. The recognisable logos and corporate colours of Malaysia Airlines which has been spread across newspapers and TV screens this year has put the company in the spotlight for all the wrong
By early 2012, the airline accumulated the losses of over Rs. 7,000 crore with half of its fleet grounded and several members of its staff going on strike. In November 2010, in order to cater heavy debts and interest from the loans taken, the company went in for debt restructuring. As a part of it total of 18 leading lenders agreed to reduce interests and convert part of debts to equity. Debt restructuring helped the company to lower down interest to 11% and save ₹500 crore/year as interest cost.
It has been reporting losses from past 5 quarters. DGCA( Directorate general of Civil Aviation) has ordered SpiceJet “No advance booking beyond a month”, as SpiceJet have frequently cancelled flights, 1861 flights up to December 31.The fall will create bad name for industry as a whole and might lead to blacklisting by banks, aircraft makers and leasing companies, as well as airport operators and fuel suppliers, both in India and abroad. Though Chief executives of foreign airlines don’t see the fall of SpiceJet as big blowback to Indian aviation industry, they think this is high time that government looks into the root causes of failure and act upon issues like high airport fees and fuel taxes to make environment more investment
2.1.4 Malaysian Airlines System (MAS) after the resignation of Tajuddin. As it is in hands of the state, MAS reported a loss of RM1.3 billion in 2005, resulting in a longer recovery plan which saw the appointment of Datuk Seri Idris Jala as the new CEO of Malaysian Airline System. Under the appointment of Idris, the airlines was expected to dismiss about 5,000 jobs and spend a maximum of RM850 million in compensation packages as part of its plan to return to profitability then making it one of the country's biggest corporate retrenchment exercise. A days later, MAS decided it’s expectation to dismiss the entire staff and only retain about two-thirds (2/3) of them on to perform the new company, which means more than 8,000 people will lose their jobs In 2007, it recorded a profit of RM852 million, the highest in the history of