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

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  • Corbet, Shaen
  • Efthymiou, Marina
  • Lucey, Brian
  • O'Connell, John F.

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.

Suggested Citation

  • Corbet, Shaen & Efthymiou, Marina & Lucey, Brian & O'Connell, John F., 2021. "When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines," Annals of Tourism Research, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:anture:v:87:y:2021:i:c:s016073832030253x
    DOI: 10.1016/j.annals.2020.103109
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    Cited by:

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    4. Foong, Jia Jun & O'Connell, John Francis & Warnock-Smith, David & Efthymiou, Marina, 2023. "A product and organisational architecture analysis of the performance of Southeast Asian airlines," Journal of Air Transport Management, Elsevier, vol. 107(C).
    5. Loraine Brown & Marina Efthymiou & Caroline McMullan, 2022. "Recovering from a Major Aviation Disaster: The Airlines’ Family Assistance Centre," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    6. Hu, Yang & Lang, Chunlin & Corbet, Shaen & Wang, Junchuan, 2024. "The impact of COVID-19 on the volatility connectedness of the Chinese tourism sector," Research in International Business and Finance, Elsevier, vol. 68(C).
    7. Marina Efthymiou & Katie McCarthy & Chris Markou & John F. O’Connell, 2022. "An Exploratory Research on Blockchain in Aviation: The Case of Maintenance, Repair and Overhaul (MRO) Organizations," Sustainability, MDPI, vol. 14(5), pages 1-17, February.
    8. Sierk Horn & Tomoki Sekiguchi & Matthias Weiss, 2021. "Thrown off track? Adjustments of Asian business to shock events," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 435-455, September.
    9. Anne Graham & David Warnock-Smith & John F. O’Connell & Marina Efthymiou & Xingwu Zheng, 2023. "Market Developments on Chinese International Air Passenger Markets in Light of COVID-19 Policy Measures," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    10. Nicolau, Juan Luis & Sharma, Abhinav, 2022. "A review of research into drivers of firm value through event studies in tourism and hospitality: Launching the Annals of Tourism Research curated collection on drivers of firm value through event stu," Annals of Tourism Research, Elsevier, vol. 95(C).

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