Research on the Economic Impact of Air Disasters on Airlines

Abstract

This research project investigates the impact of uncontrollable factors on companies, which can include natural disasters, political instability, and global pandemics. This paper focuses on the impact of an air crash on airline companies, this uncontrollable factor has significant consequences for the financial, operational, and reputational aspects of airlines, and understanding the impact is crucial for developing effective strategies to mitigate them. The study utilizes a mixed-methods approach, combining quantitative analysis of airline data with a special case study of the air crash that happened on the Eastern Airline, to provide a comprehensive analysis of the topic. The research findings reveal that uncontrollable factors can lead to the loss of reputation, reduced customer demand, and facing operational disruptions. The public's perception of the airline's safety record will be negatively impacted, which can result in a loss of customer trust and loyalty. Following an air crash, people may be hesitant to fly with the airline, resulting in a reduction in demand for their services. The significance of this research lies in its contribution to the understanding of the impact of uncontrollable factors on airlines, especially the impact of an air crash on an airline company. Even in an air crash due to factors beyond human control, people still try to avoid flying or flying with the same company for a period of time after the accident.