When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines
Corbet, ShaenORCID: 0000-0001-7430-7417, Efthymiou, MarinaORCID: 0000-0001-8611-5973, Lucey, BrianORCID: 0000-0002-4052-8235 and O'Connell, John F.
(2020)
When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines.
Annals of Tourism Research, 87
.
pp. 1-23.
ISSN 0160-7383
In 2014, Malaysia Airlines experienced two tragedies in quick succession, damaging the
company's reputation and finances, with negative implications for Malaysian tourism. This research assesses the impact of this. We find that the share price response was immediate and
substantive. The carrier implemented sweeping adjustments, while passenger traffic rapidly
declined particularly in Asian markets. Malaysian Airlines augmented fare reduction after
each accident to stem the ongoing leakage of passengers. Traffic from China witnessed sharp
declines, signalling the severity of the incumbents' prognosis. We further examine the investor
response and the ultimate government decision to nationalise and restructure
Item Type:
Article (Published)
Refereed:
Yes
Additional Information:
Article Number 101997
Uncontrolled Keywords:
Air Transport; Malaysia Airlines; Airline; Crisis management; MH17; MH370; Nationalisation