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.
Highlights
The loss of a technologically advanced commercial airliner is, an exceptionally rare event
The loss of two commercial airliners within five months, was, and remains unprecedented. This is what occurred to Malaysia Airlines in 2014, a scenario that led to the nationalisation of the company in order to protect both the Malaysian tourism industry and twenty thousand airline employees
To analyse Hypothesis H7, we focus on Table 7, which presents the results of a seasonally-adjusted, non-regional analysis of ticket pricing across all classes of travel and across all routes offered by Malaysia Airlines
Summary
Annals of Tourism Research journal homepage: https://www.journals.elsevier.com/annals-oftourism-research. When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines. Shaen Corbet a,b,⁎, Marina Efthymiou a, Brian Lucey c,d,e, John F. O'Connell f a DCU Business School, Dublin City University, Dublin 9, Ireland b School of Accounting, Finance and Economics, University of Waikato, New Zealand c Trinity Business School, Trinity College Dublin, Dublin 2, Ireland d University of Sydney Business School, University of Sydney, Sydney, New South Wales, Australia e Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam f School of Hospitality and Tourism Management, University of Surrey, UK article info. Article history: Received 5 February 2020 Received in revised form 18 August 2020 Accepted 13 October 2020 Available online xxxx
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