CASE

STUDY: 737

PREPARED BY PRESENTATION
PARTNERSHIP
Teresa Buzzoni
Mallory Carlson
A&B COMPANY
Understanding the
crisis
BOEING 737
Introduction Boeing introduced the
737 MAX in 2018, where a total of 387
aircrafts were ordered. In 2018,
however, the Lion Air 737 MAX
crashed over Indonesia just 13
minutes after takeoff, with no
survivors Titan Grey 2019). The
incident occurred because of a
malfunction in the new flight-control
system. Less than six months later,
another 737 crashed with 157 deaths
over Ethiopia in March 2019, and this
time $28 billions in stocks were lost
as well. From there, all plans were
grounded. Boeing’s chief technical
pilot, Mark Forkner, as it was
recently announced, could face
criminal charges for his involvement.
Crisis management Boeing remained
relatively unscathed by the incidents
of the crashes because of their crisis
communication techniques. They
immediately announced the problem
to their customers, reassuring them
that they would handle the issue.
Next, Boeing reached out to the U.S.
Federal Aviation Administration (FAA)
for help fixing the issues. In turn the
FAA produced a complete timeline to
share with the public what changes
were being made to fix the 737
aircrafts, creating complete
transparency.
PAGE 01
Boeing also helped mitigate any
negative perceptions by attempting
to address the problems of each
stakeholder group, speaking to staff,
those who lost loved ones, public,
shareholders and employees.
The physical response plan
looked extremely simply, but
effective. All the pilots involved in
flying 737 Max planes underwent new
training. The pilots involved in mis
operations were dealt with
accordingly. Boeing then created a
tactical plan of transparency on what
they were doing to fix the actual
software, which they outlined
directly on their website and the
FCC’s. They were cleared to fly after
some wiring changes and new
updates to the MCAS software to add
new sensors. They continued to
resolve staff issues, helping them on
a new simulator to fix the training
issues and increase plane safety.
Regarding their clients and vested
interests in the brand, they did
everything possible to let their
customers know, in addition to
providing them support to come
forward if necessary. Despite the
tragedy, Boeing did everything right
to repair that broken trust.
A&B COMPANY PAGE 02

Public response the public faced backlash due to the loss of life on their hands
Boeing was careful to manage public perception, despite some neigh-Sayers who believed
that the brand lacked emotion towards the loss of life. However, due to their size and
commitment to safety with a hundred-year reputation, Boeing flew unscathed. Other
countries, including the European union and several African nations grounded planes, and
waited for safety checks. It was feared that a local crisis could turn international as a
result.

RECOMMENDATIONS
Boeing is a strong example of what to do during a crisis. In the case of Boeing, there was
nothing to be done for the loss of life, and only a way to look forward. Boeing points out
three main takeaways for the case of crisis communications.

Take greater responsibility. Boeing needed to admit wrongdoing, because it was in fact
their planes that caused the tremendous loss of life. Being responsible and understanding
that their environment could have cause employees to cut corners, as well as not training
their pilots well enough demonstrates where Boeing had gone wrong.

Be Transparent and accountable. The Boeing case demonstrated the need for immediate
transparency. Giving airline passengers the choice to make their own decisions was a
powerful move that saved much of Boeing’s brand.

Recognize the human element in every crisis. Looking at the massive loss of life, Boeing
needed to be more sensitive to the families who lost loved ones. Without losing touch of
their sympathy, the brand also needed to ensure that it was protecting itself from
backlash while also supporting the safety of their passengers. The brand was criticized
for having relied on the history of reliability and safety, rather than looking at the
current issue and loss of life.

K n o w y o u r a u d i e n c e. U n d e r s t a n d i n g t h a t t h e c a m p a i g n n e e d e d t o a d d r e s s m u l t i p l e
publics, Boeing had to know that the world was watching during the duration of their
public relations campaign. With the board of directors containing a vested interest,
Boeing had to assure those with vested monetary interest that stock prices would
recover. They also had to assure workers that it would be safe to come to work and get
on a plane. For passengers, knowing that the problems had to be fixed was crucial. With
the lawsuit facing the operations officer, it was also important to understand that a
larger separation was needed between those with vested interest in making money, and
those who would address the problem correctly.

D o n ’ t r e l y o n s c a l e. L o o k i n g t o t h e r e p u t a t i o n o f B o e i n g a s a s a f e a i r l i n e t o f l y w i t h , i t
was important for them to run a fully-fledged crisis campaign to immediately alert
consumers of their awareness of the issue. By fully acknowledging that they had a
problem, they were able to come back from the crisis.
A&B COMPANY PAGE 02

EVALUATION AND
RESPONSE
Evaluation and response Boeing’s response was effective, for all that it is worth. From the
beginning of the crisis in March 2019 when the second plane fell to September of 2021,
Boeing has remained a tremendous aircraft carrier and remained a large name in the
airline world, with thousands of passengers travelling safely per year. The international
approach was curtailed to understanding the strategy behind their crisis
communications. The talks needed to be global, and help people understand different
values in different languages, and with extremely varied, vested interests. Looking to the
future, Boeing needed to continue learning. Looking to the pending lawsuits and trials
ahead, Boeing had to be sure that they maintained their position and did not anger the
public further. This was achieved through their compassionate and sensitive addressal of
the issue and legal position. All in all, Boeing taught us an extremely positive example of
what could be done right when there was no right answer to a situation.