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Published by:
Amity Research Centers (2019)
12 pages
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Boeing, one of the leading aviation giants swung into crisis mode after witnessing two fatal crashes in five months (October 2018 and March 10th 2019) involving its fastest selling airliner 737 Max 8. According to the preliminary investigation, causes of both the crashes appeared to be similar. In the wake of the two crashes, 737 Max planes were grounded across the world. More than 40 countries banned 737 Max airliners in their airspace. The Trump administration, the Congress and the FBI raised a query over the FAA certification process of the airliner. The impact of the crash was so severe that Boeing had to postpone the launch of its new jumbo 777 Max. Within few days, the company lost almost USD26 billion of its market capitalisation and was also facing a set back to its brand reputation. Boeing was working hard to restore the faith of its various stakeholders such as airlines, passengers, Governments, regulators and pilots. The company had publicly unveiled software fixes and other improvements related to 737 Max fleet. The company worked upon its automated flight control system. It also implemented new pilot training protocols. Around 200 aviation industry leaders, technicians, pilots and regulators were called by Boeing to inspect its assembly plant outside Seattle. Would Boeing be able to overcome its public relations nightmare? Would the company be able to restore the lost trust?

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Boeing 737 MAX; Restore the lost trust; Ethiopian Airlines; Aviation market; Tarnished brand image; Faulty flight control system; Grounding of Boeing 737 Max; FAA; Shares declined; Boeing 777; Worst crisis; Reputational damage; Image makeover; Rebrand


The events covered by this item took place in 2019.

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