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When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines

Shaen Corbet (), Marina Efthymiou, Brian Lucey () and John F. O'Connell

Annals of Tourism Research, 2021, vol. 87, issue C

Abstract: 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.

Keywords: Malaysia Airlines; Airline; Crisis management; MH17; MH370; Nationalisation (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.annals.2020.103109

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