Airlines Crisis Management Case Study Assignment Paper (Case Study Sample)

Airlines crisis management case study
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Airlines Crisis Management Case Study
Airlines like any other corporations have goals, which must be managed well to achieve profits. Management thus entails the organization of goals to ensure success through coordination. One of the functions of airline management is controlling (Holloway, 2017). The controlling function involves taking corrective measures to ensure performance is in line with management expectations. This includes crisis management.
Case Study: United Airlines Crisis Management
In April 2017, the united airlines were hit by negative public relations which led to the drop in the company’s stock by $1B. The PR crisis came only a month after the company’s CEO had been awarded the communicator of the year award (Crisis management case study: United Airlines, 2017). The incident leading to the crisis involved the airlines’ security crew dragging a passenger, dr. Dao from the aircraft and was later hospitalized. The whole incident occurred while other passengers were on board and were recorded in multi smartphones and shared globally. The incident led to negative relations with the company’s clients across the globe.
The crisis further escalated after the company CEO; Oscar Munoz gave an insensitive apology. Further, also, a leaked email from the CEO to its employees described the passenger as being disruptive and that the officers were right to act the way they did. The escalation of events after the united airline's issue put the airline's management under scrutiny.
Impact To The Airline's Industry
The incident that occurred at the united airlines has a possible impact on the airline's industry as a whole. The management’s failure to swiftly address the issue has a few impacts to the airline in penetrating the Asian markets. This is because of the injured passenger, Dr. Dao was Asian and filed a case claiming he was targeted because he was Asian. With the globalization of many corporations, it is important to take into consideration the diversity of cultures while handling the clients.
Also, since the incident, the company has been put in the spotlight, and any slight mistake may lead to further escalation of the crisis in the company (Sakzewski, 2017). For instance, after the united airline's passenger incident, another minor incident involving the death of a rabbit on board from London made to the news. Such news would not have seen the light of day had the company not have been placed in the spotlight.
The crisis management failure at United also offers ways in which airlines should address the crisis in the current age. For instance, quick response to the customers shows the company’s empathy towards its clients. Also, in this technological age, information travels fast. It is thus of great importance that the company gets its facts right during a crisis to help in better response to a situation. With the emergence of social media, information could easily get into the wrong hands. Thus it is important for the manager...