Malaysian airlines slide deck

MH370 Flight

Flight Path

Introduction!

Issue Management Analysis!

Recommendations!

INTRODUCTION

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!

Flight Disappears!

Timeline!

8 March 2014!

Flight Disappears!

5.30am: Search begins!

Timeline!

8 March 2014!

7.30am: Statement issued by airline!

Flight Disappears!


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!




Timeline!

8 March 2014!

Flight Disappears!


Website went “dark”!


Timeline!

8 March 2014!

What MAS did: !- Crisis updates in English

and Chinese to accommodate different audiences!

Flight Disappears!




Going “dark”

Timeline!

8 March 2014!

Flight Disappears!



11 March 2014!

It was revealed that two men boarded plane with stolen

passports !


Timeline!

8 March 2014!

Flight Disappears!



11 March 2014!


passports !


What MAS did: !- Several press releases

specifically to quell rumours and myths!

Timeline!

8 March 2014!

Flight Disappears!



11 March 2014!


passports !

24 March 2014!

MAS announced to relatives that MH370 was lost, no survivors!


Timeline!

8 March 2014!

Flight Disappears!



11 March 2014!


passports !

24 March 2014!

MAS announced to relatives that MH370 was lost, no survivors!


What MAS did: !- Sent this information via text

message!

Timeline!

8 March 2014!

Flight Disappears!



11 March 2014!


passports !

24 March 2014!

MAS announced to relatives that MH370

was lost, no survivors!

CEO confirms there were highly

flammable lithium-ion batteries!


Timeline!

8 March 2014!

Flight Disappears!



11 March 2014!


passports !

24 March 2014!

MAS announced to relatives that MH370

was lost, no survivors!

CEO confirms there were highly

flammable lithium-ion batteries!


What MAS did: !- Info only revealed 4 days

after he denied that the aircraft carried any dangerous

cargo!

Stakeholder analysis

Grunig’s Organizational Linkage Model!

Summary of MAS Stakeholders

Summary of MAS Stakeholders

Stakeholder analysis Stakeholder

Salience Model!

Situational Theory!

Power-Interest Matrix!

Prioritizing Stakeholders Before the Crisis

Stakeholder Salience Model!

Immediately after the Crisis

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!


Situational Theory!


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!!

Customer!

Victim’s Family!

Public!

Prioritizing Stakeholders Power-Interest Matrix!

Customers!Victims’ Families!

Public!

Media!Labor Unions!Employees!

SWOT analysis

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

R!Recommendations

Problem Statement!

Problem Statement!MH370

Earnings decreased

Stocks were delisted


Deal with different stakeholders

Relatives Government Media


Restructuring

R enaming ebranding R R etrenching


Restructuring

6,000 Employees To Be Laid Off

R enaming ebranding R R etrenching

Relevant theories!

VISION CULTURE

IMAGE

Relevant theories!

VISION CULTURE

GAP

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


SINGAPORE AIRLINES What Malaysia Airlines can learn from

SQ006

Crashed into construction equipment on the runway


SINGAPORE AIRLINES What Malaysia Airlines can learn from

ROBUST CRISIS PLAN SQ006


What Malaysia Airlines can learn from SINGAPORE AIRLINES

Assumed full responsibility Provided timely and accurate updates

Deployed trained staff to give emotional support


Pre-emptive measures SINGAPORE AIRLINES Introducing new systems to guide airplanes on

runways

Strategies & Tactics

Goals!

Reputation and Brand Image

Staff Morale

Change perceptions of their company!

Stigma against MAS


Facing immense pressure Stigma against MAS


Change their brand name

Stigma against MAS Facing immense pressure


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

Japan Airlines!

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

Thank you for flying with Malaysia Airlines

Malaysian airlines slide deck

Social Media

Transcript of Malaysian airlines slide deck