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Who is Malaysian Airlines?!20,000 employees and 5 types of aircraft!
50,000 passengers on average daily!
Covers more than 850 destinations!
Accorded more than 100 awards in the last decade!
‘World’s Best Cabin Crew’!
In August 2014, KHAZANAH NASIONAL which then owned 69.37% of the airline announced its intention
PURCHASE REMAINING OWNERSHIP from to
minority shareholders and DELIST THE AIRLINE
FROM MALAYSIA’S STOCK EXCHANGE.
Our Approach!
Online Search of articles and media resources!
Our analysis shall focus only on the first incident, the disappearance of MH370!
Timeline!
8 March 2014!
7.30am: Statement issued by airline!
Flight Disappears!
5.30am: Search begins!
Timeline!
8 March 2014!
What MAS did: !- Took 5 hours to admit they
lost contact with MH370!- Waited 1 hour to inform
families about missing plane!
Flight Disappears!
5.30am: Search begins!
7.30am: Statement issued by airline!
7.30am: Statement issued by airline!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
7.30am: Statement issued by airline!
Timeline!
8 March 2014!
What MAS did: !- Crisis updates in English
and Chinese to accommodate different audiences!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
7.30am: Statement issued by airline!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
11 March 2014!
It was revealed that two men boarded plane with stolen
passports !
7.30am: Statement issued by airline!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
11 March 2014!
It was revealed that two men boarded plane with stolen
passports !
7.30am: Statement issued by airline!
What MAS did: !- Several press releases
specifically to quell rumours and myths!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
11 March 2014!
It was revealed that two men boarded plane with stolen
passports !
24 March 2014!
MAS announced to relatives that MH370 was lost, no survivors!
7.30am: Statement issued by airline!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
11 March 2014!
It was revealed that two men boarded plane with stolen
passports !
24 March 2014!
MAS announced to relatives that MH370 was lost, no survivors!
7.30am: Statement issued by airline!
What MAS did: !- Sent this information via text
message!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
11 March 2014!
It was revealed that two men boarded plane with stolen
passports !
24 March 2014!
MAS announced to relatives that MH370
was lost, no survivors!
CEO confirms there were highly
flammable lithium-ion batteries!
7.30am: Statement issued by airline!
Timeline!
8 March 2014!
Flight Disappears!
5.30am: Search begins!
Website went “dark”!
11 March 2014!
It was revealed that two men boarded plane with stolen
passports !
24 March 2014!
MAS announced to relatives that MH370
was lost, no survivors!
CEO confirms there were highly
flammable lithium-ion batteries!
7.30am: Statement issued by airline!
What MAS did: !- Info only revealed 4 days
after he denied that the aircraft carried any dangerous
cargo!
Before! After!
Customers! Dominant ! Definitive!• Retain customer base!
Public! Non-stakeholder! Demanding!• Maintenance of image!
Media! Non-stakeholder! Dangerous!• Can help or destroy
MAS reputation!Aviation Industry! Dangerous ! Demanding!
• Unimportant in the face of a crisis!
Prioritizing Stakeholders
The Dynamic nature of stakeholder priorities
Stakeholder Salience Model!
Prioritizing Stakeholders
Customers!• Key public!• Source of income!
Public!• Key public!• Create public sentiments!
Victims’ Family!• Influentials!• Gain power as opinion
leaders!
Media!• Intervening public!• Source of information!
Labor Unions!• Intervening public!• Power by numbers!
Employees!• Constraint behavior!• Little influence!!
Prioritizing Stakeholders Power-Interest Matrix!
Customers!Victims’ Families!
Public!
Media!Labor Unions!Employees!
SWOT!
- Framework mentioned by Coombs (2012) - Strengths & Weaknesses: Crisis Responses (Internal, Preventable) - Opportunities & Threats: Disasters (External, Unpreventable)
Provided flight transcripts and documents
Dark Site
Information in English and Chinese
Facebook, Twitter & Google+
Expressed compassion and
sympathy
Acknowledged but did not comment further on speculations that arose
Strengths
Weaknesses
Backtracking and inconsistency
Slow in communicating to families and public
SMS sent to victim’s families
Gaps in updates led to rumours and
speculations
Updates on social media did not
contain updates specifically
Opportunities
Backing of the Malaysian
Government Improve flight
tracking technology
Learn and recover through possible rebranding and
restructuring success stories (JAL, SIA)
Leverage on their brand equity
Media coverage of the incident drowning out
official statements
Unpredictable crises make current disaster prevention handbooks
irrelevant
Negative public sentiment damaged
brand reputation and image
Labour unions backing MAS
employees
Employees unhappy about possible job
cuts
Threats
Insights!
- Prioritise stakeholders
- Regain public trust
- Communicate better with the media and labour groups
Problem Statement!MH370
Restructuring
6,000 Employees To Be Laid Off
R enaming ebranding R R etrenching
Relevant theories!CRISIS PLANNING (MITROFF & PEARSON, 1993)
Stage 1: Minimal planning for emergency responses
Stage 2: major planning but limited to natural disasters and potential human
errors
Stage 3: Extensive contingency plans
with training of personnel with
detailed procedures
Stage 4: Inclusive contingency plans
with various types of crises
Stage 5: Environmental
scanning and early warning systems
Relevant theories!CRISIS PLANNING (MITROFF & PEARSON, 1993)
Stage 1: Minimal planning for emergency responses
Stage 2: major planning but limited to natural disasters and potential human
errors
Stage 3: Extensive contingency plans
with training of personnel with
detailed procedures
Stage 4: Inclusive contingency plans
with various types of crises
Stage 5: Environmental
scanning and early warning systems
Relevant theories!CRISIS PLANNING (MITROFF & PEARSON, 1993)
SINGAPORE AIRLINES What Malaysia Airlines can learn from
SQ006
Crashed into construction equipment on the runway
Relevant theories!CRISIS PLANNING (MITROFF & PEARSON, 1993)
SINGAPORE AIRLINES What Malaysia Airlines can learn from
ROBUST CRISIS PLAN SQ006
Relevant theories!CRISIS PLANNING (MITROFF & PEARSON, 1993)
What Malaysia Airlines can learn from SINGAPORE AIRLINES
Assumed full responsibility Provided timely and accurate updates
Deployed trained staff to give emotional support
Relevant theories!CRISIS PLANNING (MITROFF & PEARSON, 1993)
Pre-emptive measures SINGAPORE AIRLINES Introducing new systems to guide airplanes on
runways
Change perceptions of their company!
Change their brand name
Stigma against MAS Facing immense pressure
Change perceptions of their company!
Change their logo
Stigma against MAS Facing immense pressure Change their brand name
Working together with the unions!
Ensure demands of unions are met
Foster stronger ties with the staff
Singapore Airlines!
Hedging Responsibility
Accepting Responsibility
Making Amends
Offering Reassurances
Looking Ahead
Fig.2. SIA’s communication strategies
Evaluation!Strategies mentioned were to ensure goals
were met
Huge step forward for MAS
Financial stability is necessary
Evaluation (Japan Airlines)!
Bowing is in the Japanese culture and unconventional
Boost sense of sincerity
Increase likelihood of public acceptance