PR Plan 1: Malaysia Airlines. Rachel Harbison Sheridan Smith Catherine Sammon Christina Roach Emi Nguyen

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Juliet Garrett
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1 PR Plan 1: Malaysia Airlines Rachel Harbison Sheridan Smith Catherine Sammon Christina Roach Emi Nguyen

2 Executive Summary: On March 2014, Malaysia Airlines suffered one of the biggest airline disasters in history. Flight MH370 disappeared around 1 a.m. on March 8, carrying 239 passengers on board. It has yet to be found. Malaysia Airlines has been widely criticized for its crisis communication efforts after the MH370 incident. In response to this incident, Malaysia Airlines launched an investigation to find the aircraft. Although this was necessary, their response was viewed as stalling. They also used deliberate inaction when there was little information to give the family members, customers, and stakeholders. We plan to act immediately on this issue. We will be transparent and provide consistent accurate updates on the investigation. Concern and compassion to the families is our number one priority in this case study. Situational Overview: Malaysian Airlines crisis on the lost of flight MH370 was accidental and preventable. At 7:30 a.m. on March 8, 2014, Malaysia Airlines issued a media statement confirming that they had lost contact with MH370 nearly five hours prior. The media statement also included that the airline had begun working with authorities as well as a search and rescue team. They provided a phone number for families of those on board to call for any further information. Malaysia Airlines continued to provide the public with updated information on their website. The former head of the communication department for Malaysia Airlines admitted that the company could have been more sensitive and sympathetic to the concerns of passengers family members. A week after the incident, the airline reached out to Ketchum, a public relations agency based in Singapore for PR support. The airline did not make their work with Ketchum known until many days after it had begun. On March 24, 16 days after the flight disappeared, the airline delivered official condolences to the relatives of the 239 people who had been on board. The company sent out a text stating, Malaysia Airlines deeply regrets that we have to assume beyond any reasonable doubt that MH370 has been lost and that none of those onboard survived, confirming that the flight had crashed somewhere in the Indian Ocean. The Malaysian government also played an important role informing the key publics, which include families of passengers and the customers about the incident. However, the way the government responded to the media was described as uncomfortable by the former head of communications at Malaysia Airlines, Indira Nair. The Prime Minister of Malaysia, Najib Razak, held a press conference on March 24 to address the public. A satellite based analysis was used to determine where the plane might have crashed, though it could not predict the cause of the crash. During the search, two pieces of debris had been spotted, but after 17 days it was postponed due to weather conditions. Razak informed the public that the flight had ended in the Indian Ocean.

3 Relatives of passengers aboard MH370 found that facilities set up generally proved to be disorganized. Malaysia Airlines put relatives in hotel rooms for weeks in Beijing and Kuala Lumpur where they convened to brief families about the search, but news was delivered sporadically and often late. Almost two years after the incident, on February 14, 2016, Malaysia has blasted reports which claimed the pilot of the doomed MH370 plane has been found alive. However, no major newspaper has any report on the event. Last year, on February 28, 2015, TheGuardian reported on the event with a title: Nobody cares any more : the relatives who went looking for Malaysia Airlines flight MH370. In the article, Sarah, a relative of the missing plane s passenger told TheGuardian that nobody cared anymore. The story s moved one. Maybe that s the reason why the blasted report on the pilot received no attention from the public. Because as Sarah once said: This is just one of those things that people will be shocked about, then do nothing about. Background: Malaysia Airlines Berhad is a major airline operating flights from Kuala Lumpur International Airport and from secondary hubs in Kota Kinabalu and Kuching to destinations throughout Asia as well as a handful of destinations in Europe and Oceania. Serving 40,000 guests on 330 flights to more than 50 destinations daily, Malaysia Airlines is the national carrier of Malaysia and one of the largest in Asia. ( Corporate Info Our Story About Us ) The airline began as Malayan Airways Limited and flew its first commercial flight in A few years later, after Singapore s independence in October 1, 1972, the airline separated from Singapore Airlines and changed its name to Malaysia Airlines. ( Corporate Info Our Story About Us ) The airline s slogan is Journeys are made by the people you travel with. Despite numerous awards from the aviation industry and recognition from the World Travel Award as the leading airline in and to Asia ( , 2013), the airline struggled to cut costs to compete with new, low cost carriers in the region since the early 2000s. ( Malaysia Airlines Operators ) In 2013, the airline initiated a turnaround plan after large losses beginning in 2011 and cut routes to prominent, but unprofitable, long haul destinations, such as the Americas and South Africa. Malaysia Airlines also began an internal restructuring and intended to sell units such as engineering and pilot training. ( Malaysia Airlines Airline History ) Prior to the incident of flight MH370, the airline had one of the world s best safety records. Aside from two fatal accidents in 68 years of operation, including the hijacking in 1977 of Flight 653 that resulted in 100 casualties. ( Malaysia Airlines Airline History ) Timeline:

4 March 8, 2014 Malaysia Airlines Flight MH370, scheduled to fly from Kuala Lumpur, Malaysia to Beijing, China, disappears less than an hour after takeoff. (12:41 a.m.) A search and rescue mission is launched four hours after contact is lost. Malaysia Airlines is trying to rectify the situation through an investigation. Malaysia Airlines issues a statement of the disappearance five hours after lost contact with the flight (7:24 a.m.) Saturday, March 08, 07:30 AM GMT Media Statement MH370 Incident released at 7.24am Sepang, 8 March 2014: Malaysia Airlines confirms that flight MH370 has lost contact with Subang Air Traffic Control at 2.40am, today (8 March 2014). Flight MH370, operated on the B aircraft, and departed Kuala Lumpur at 12.41am on 8 March MH370 was expected to land in Beijing at 6.30am the same day. The flight was carrying a total number of 227 passengers (including 2 infants), 12 crew members. Malaysia Airlines is currently working with the authorities that have activated their Search and Rescue team to locate the aircraft. The airline will provide regular updates on the situation. Meanwhile, the families may contact for further info. Malaysia Airlines holds press conference announcing loss of contact with the flight. (11:14 a.m.) State media reports the Vietnam navy saying the flight crashed near Vietnam. (1:41 p.m.) Chief executive of Malaysia Airlines Ahmad Jauhari Yahya held a press conference near Kuala Lumpur International Airport stating the flight had not crashed in Vietnam. (2:33 p.m.) Chinese president called for emergency search efforts for missing plane (8:15 p.m.) Two passports of passengers on board are found to have been stolen from Thailand in the last two years. (10:46 p.m.) March 9, 2014 Search efforts are initiated in the Andaman Sea based on the possibility that the aircraft may have turned back from its flight path The men holding the stolen passports are put into question about a possible link to terrorism in regards to the missing flight. They are found to be migrants on their way to Germany. March 11, 2014 Air force chief Tan Sri Rodzali Daud reportedly said the plane had last been detected at 2:40am near Pulau Perak, an island in the Malacca Strait a massive detour: instead of travelling north to China, it had doubled back across Malaysia. March 12, 2014

5 Air force chief General Tan Sri Rodzali Daud denies plane was detected on radar after being quoted by the media that the plane was last detected over the Strait of Malacca. This act of denial is a defensive response strategy. Malaysian officials become heated during a press conference after China states that the search effort is chaotic and in disarray. March 13, 2014 The Wall Street Journal publishes an article stating messages about the engine's performance continued to be sent to the manufacturer's hours after the flight was last seen. March 14, 2014 The White House cites unspecified information that the flight may have continued to fly after losing contact so the search spreads further. March 15, 2014 Malaysian prime minister announces during a press conference the plane had in fact flown onward for hours and veered off route at the same time its communication system was turned off. March 18, 2014 Relatives of the passengers threaten to go on a hunger strike because they believe the full truth is not being given to them. March 19, 2014 During a daily media briefing angry relatives gatecrash holding a sign that says Give us back our families. March 21, 2014 Malaysia asks for the US to provide sonar equipment during a daily media briefing and adds it s looking into equipment to locate the plane s black box. March 22, 2014 A new potential sighting is announced by acting transport minister Hishammuddin Hussein. March 24, 2014 Malaysia Airlines sends a text message to families offering their condolences. This is a form of vocal commiseration. March 25, 2014 At 10 p.m. Twitter hashtag, #MH370, was created on Malaysia Airlines Twitter stating, We re deeply saddened by the loss of #MH370. Our prayers & condolences are with the families in this moment of sorrow. This was the first word via social media of the plane being lost. The hashtag is a tactic through vocal commiseration. Relatives in Beijing get into fights with security outside Malaysia s embassy demanding answers as to what is actually going on. March 26, 2014 Ribbeck Law Chartered International begins filing lawsuits against Malaysia Airlines and Boeing for millions of dollars per passenger. October 31, 2014

6 Malaysian family sues the government, civil aviation authorities immigration department and air force for negligence. In addition they file suit against Malaysia Airlines for breach of contract. Damage and Crisis Management Reflections: The leading repercussion from Malaysia Airlines flight MH370 is the loss of customer trust. Malaysia Airlines showed no communication plan, or sympathy for the family members who lost passengers. The blame is still held against the public relational representatives for misleading the public and releasing false information. Along with loss of trust, the organization s second leading repercussion is the financial plummet that occurred. Their stock has seen its largest decline since 1998 and the Malaysian government has considered letting the company fail. The company had a net loss of $443.4 million in the three months after the incident occurred. Initially the incident was handled poorly because of the slow response time. The airline activated a dark site, to be the designated main source of communication. The site included informational updates throughout the day, forwarding the posts to various social media platforms. Relative to what the organization did poorly, it outweighs what the organization did well. The company used rectifying behavior as a way of gaining customers back. Malaysia Airlines way of using corrective action to refund customers flight purchases shortly after the incident occurred was an incentive to get customer relations back on their side. The organization lost credibility due official statements that were inaccurate, followed by corrections to the given statements. The loss of credibility was felt the most among family members of those on board the plane. It took 16 days for the company to acknowledge the situation and express it to the family members. The airline sent out a text to family members that stated, Malaysia Airlines deeply regrets that we have to assume beyond any reasonable doubt that MH370 has been lost and that none of those onboard survived. The organization has shown deliberate inaction through silence. Each update that was posted on Malaysia Airlines website has been erased. Other countries, such as Australia and France, continue to provide the public with up to date information. They have continued the search, unlike Malaysia Airlines who has gone months without offering any information. Goal: Maintain confidence and trust in company among customers, stakeholders and relatives of passengers.

7 Objectives: To allow a 10% decrease in ticket purchases among customers within the first six months of the 2014 investigation as measured by passenger capacity. To increase positive media coverage via Twitter users by 60% by the end of 2014 as measured by Malaysia Airline mentions. Redo Plan: As soon as the plane goes undetected and the airline finds something is wrong with the flight status, Malaysia Airlines should begin a pre emptive strike strategy by contacting the families. Before the crisis is leaked to the public or posted publicly as missing on flight boards, the company knows bad news is inevitable and should contact the families with concerns and accurate information. The best tactic would be to reach out to emergency contacts via with a personalized message, directly from the company, so that someone will be there to answer follow up questions. This is important because it utilizes an interpersonal communication tactic that will give the families more trust and faith in the company. Immediately after contacting the families and sharing their deepest concerns and sympathies, the airline should release a statement with their course of action towards finding the aircraft; again expressing their condolences. The CEO of Malaysia Airlines should be the face of all press releases and media acknowledgements. Our strategy here is vocal commiseration. The spokesperson should make sure that concern and condolences are the company s number one priority. To rectify the behavior, the airline should be transparent throughout the investigation. They should release their plans to make it clear they are doing everything in their power to resolve the situation. Throughout the investigation the families should always be contacted before the press to maintain trust within the company. It is important to come out with press releases and media statements often, but the information should always be accurate and honest. Because there are few updates and little progress being made, they should express what the plans are to further the investigation. Since new information is rare it would be important to explain why and what changes they are making to the plan along the way. We chose an information exchange tactic to allow two way conversation with the families and news media tactics to spread the word to a larger audience. To correct their actions, they should express what changes they will make in the future to ensure nothing like this happens again. For restitution, a hotline number should be provided for families or those concerned to allow contact at all hours. There should always be someone available to answer further questions. Long term reputation will be very important for the company. For repentance they should change standards to ensure safety and become safety advocates for other airlines as well.

8 Redo Timeline: March 8, 2014 Malaysia Airlines Flight MH370, scheduled to fly from Kuala Lumpur, Malaysia to Beijing, China, disappears less than an hour after takeoff. (12:41 a.m.) Immediate action is to be taken at this point in regards to the disappearance. Malaysia Airlines should contact all other crew captains in the area to inform them of the loss of contact with MH370. (12:45 a.m.) Families and relatives of the passengers are to be ed personally after they have contacted all other active flights. Malaysia Airlines is showing their concern through vocal commiseration. Malaysia Airlines issues a statement to major media outlets (newspapers, online news sites, network and cable news) of the disappearance 3 hours after lost contact with the flight. (5:24 a.m.) Malaysia Airlines holds press conference announcing loss of contact with the flight and the initial search and rescue efforts. CEO answers any questions able to be answered and announces a second press conference will be held at a later time regarding its search and rescue plan. (6:00 a.m.) State media reports the Vietnam navy saying the flight crashed near Vietnam. (1:41 p.m.) Chief executive of Malaysia Airlines Ahmad Jauhari Yahya holds a press conference near Kuala Lumpur International Airport stating the flight has not crashed in Vietnam. Additionally, any statements or reports regarding the flight should be ignored if it they do not come directly from Malaysia Airlines. He then reveals the plan for their search and rescue mission over the next 48 hours. (2:33 p.m.) Chinese and Malaysian president calls for emergency search efforts for missing plane. They are taking steps to contain the problem by using corrective action. (8:15 p.m.) A statement is released to major media outlets (newspapers, online news sites, network and cable news) that passports of two passengers on board are found to have been stolen from Thailand in the last two years and will be investigated immediately for any ties to terrorism. (10:46 p.m.) March 9, 2014 CEO of Malaysia Airlines holds a press conference in the morning to inform the press the passengers with the two stolen passports were found to be migrants on their way to Germany and posed no threat. The search efforts are still in effect, and any new information regarding the flight will be relayed to families of passengers first and then released to the press by Malaysia Airlines immediately. March 11, 2014 Air force chief Tan Sri Rodzali Daud reports the plane was last detected at 2:40am near Pulau Perak, an island in the Malacca Strait a massive detour: instead of travelling north to China, it had doubled back across Malaysia. Search efforts are doubled in this area and the new search plan is made public via a press release to major news outlets

9 ( newspapers, online news sites, network and cable news). This is another form of corrective action as they are trying to further contain the problem. March 12, 2014 MA issues a press release to all major media outlets (newspapers, online news sites, network and cable news) stating that their safety measures will change to ensure that a situation like this does not happen again. This is a form of concession as they are trying to ensure that safety standards are up to measure. March 13, 2014 The Wall Street Journal publishes an article stating messages about the engine's performance continued to be sent to the manufacture hours after the flight was last seen. March 14, 2014 MA CEO announces during a press conference the plane had in fact flown onward for hours and veered off route at the same time its communication system was turned off. The company is taking action and immediately beginning a search in the area. March 21, 2014 Malaysia asks for the US to provide sonar equipment during a daily media briefing and adds it s looking into equipment to locate the plane s black box. March 22, 2014 A new potential sighting is announced by acting transport minister Hishammuddin Hussein. Action is taken immediately and search efforts are extended to this area. March 25, 2014 Relatives in Beijing get into fights with security outside Malaysia s embassy demanding more answer. Limitations: Our plan is limited by lack of new information and evidence of the plane s whereabouts. We hope to gain long term trust by recognizing and addressing where Malaysia Airlines went wrong. Interpersonal communications tactics will be time consuming but effective because it shows empathy. Nonetheless, negative reactions from family members are inevitable due to limited information. In our plan we will continue to be transparent and always keep the family members informed with immediate updates. Due to the high amount of public interest in this case, interpersonal communication is limited because Malaysia Airlines cannot contact each party that expresses interest. Works Cited: Han, Choong En, and Kyunghee Park. "Malaysian Airline Stock Drops as State Considers Pullout." Bloomberg.com. Bloomberg, 19 May Web. 31 Jan Tilley, Jonathan. "Analysis: Malaysia Airlines' Mishandled Response to the MH370 Crisis." Analysis: Malaysia Airlines' Mishandled Response to the MH370 Crisis. N.p., 21 Mar Web. 31 Jan

10 Chibber, Kabir. "Malaysia Airlines Is Offering Refunds for Any Tickets to Fly This Year." Quartz. N.p., 19 July Web. 31 Jan Mintz, Zoe. "A Disastrous Void: Why The MH370 Public Response Failed." International Business Times. N.p., 16 June Web. 31 Jan "MH370: What We Know." BBC News. N.p., 3 Dec Web. 31 Jan "Corporate Info Press Room 2014 Malaysia Airlines." Corporate Info Press Room 2014 Malaysia Airlines. Web. 04 Feb info/press room/2014.html "Corporate Info Our Story About Us Malaysia Airlines." Corporate Info Our Story About Us Malaysia Airlines. Web. 14 Feb Johnson, David E. "(2015 Top Post) Malaysia Airlines: A Lesson in Crisis Management CommPRO.biz." CommPRO.biz Web. 04 Feb "Malaysia Airlines." Malaysia Airlines. Web. 14 Feb < history.net/airline profile drop down box/cargo airlines/101 international airlines/296 mal aysia airlines.html?showall=1 >. "Malaysiaairlines Operators." :: Malaysiaairlines Operators. Web. 14 Feb "Missing Malaysia Airlines Plane: Timeline of Events on Flight MH370." The Straits Times. 14 Mar Web. 04 Feb Jie, Su. "The Crisis Management on Social Media: A Case Study of Malaysia Airlines Crisis Management of Missing Flight MH370 on Facebook." Academia.edu, 12 May Web. 04 Feb Perring, Rebecca. "Malaysia Blasts Report That MH370 Pilot Was Found ALIVE in Taiwan Hospital." Express.co.uk. 14 Feb Web. 14 Feb Ronson, Jon. "'Nobody Cares Any More': The Relatives Who Went Looking for Malaysia Airlines Flight MH370." The Guardian. 28 Feb Web. 2 Feb

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