“Until the pattern was established, people didn’t think it applied to them,” he said. We’re going to work on this and figure it out.’”Īccording to McDonald, people’s fear of flying on Boeing aircraft after the Ethiopian Airlines crash wasn’t because of that accident alone, but because of an apparent pattern between that incident and the Lion Air crash. After the Lion Air crash last October, he said, “Boeing did a really good job, initially, of saying, ‘We need to find out what’s happening. John McDonald, the founder of the crisis management firm Caeli Communications, disagrees with Grabowski’s assessment that Boeing has handled the crisis poorly. “Either he was being disingenuous or he was speaking to the president without the facts.” “Whether he said that because he didn’t have the facts or was ignorant of the facts, or whether he was trying to veil the fact that he knew ,” Grabowski said, Boeing’s CEO made a “big mistake” by calling Trump. But companies that perceive themselves as business-to-business actually do a worse job because they’re not used to dealing directly with consumers.”Īnother issue, he said, was that Boeing’s CEO called the president before the FAA decided to ground certain Boeing jets to convince him to keep the planes in flight. “A business-to-consumer operation like Procter & Gamble - or an airline, like Southwest Airlines or even United on its best days - is better at handling crises. “One of the seeds of Boeing’s mishandling of the crisis is the very fact that it considers itself a business-to-business operation,” Grabowski said.
“It’s going to cost Boeing between $30 billion and $40 billion, but they’re going to recover because their business is so strong.” -Gene Grabowski, a partner at the public relations firm kglobalīut that doesn’t mean Boeing has done everything right on the road to recovery, Grabowski said. “The United States government wouldn’t let Boeing go out of business - they’re like GM or AIG. “It’s going to cost Boeing between $30 billion and $40 billion, but they’re going to recover because their business is so strong,” Grabowski said. If Boeing were a carmaker, it would be more serious because there’s more competition,” he said. “There aren’t that many aircraft manufacturers. But Boeing’s business is so strong, he doesn’t doubt it will recover eventually. “Boeing’s recent situation, it’s a huge problem,” Grabowski said, and added that the company hasn’t handled it as well as it could have. Gene Grabowski, a partner at the public relations firm kglobal, told me that three factors determine whether a company can recover from a crisis: how big the problem is, how the company handles the problem, and how strong the company’s business is. The question isn’t if Boeing will be able to bounce back, but how long it will take - and how much it will cost - for its reputation to recover. But Boeing isn’t the first big company to struggle with a scandal of a similar scale companies like Chipotle and Toyota have faced enormous safety concerns as well. Though it’s still unclear what caused the deadly accidents, it’s undoubtable that the manufacturer’s reputation - and its stock - has taken a hit. On Monday, the CEO of Ethiopian Airlines said it would be difficult for Boeing to restore his trust in the safety of its planes. The initial panic over the safety of Boeing’s jets has died down, but the investigations into what went wrong on the Ethiopian Airlines flight and the deadly Lion Air crash five months earlier are ongoing - and Boeing remains in damage control mode. Shortly after the second crash, which occurred on March 10 and involved an Ethiopian Airlines jet headed from Addis Ababa to Nairobi, Kenya, regulators in China, the European Union, and the US grounded all Boeing 737 Max jets. The world’s largest commercial aircraft manufacturer is being investigated by the Department of Justice in response to two deadly crashes involving its 737 Max jets less than six months apart. Boeing is in the middle of a public relations nightmare.
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