Paris: Negative publicity over the grounding of Boeing’s 737 MAX jet following two fatal accidents is set to wipe $12 billion off the value of the plane maker’s brand, Brand Finance said.
The UK-based brand consultancy firm updated the estimate in response to a Reuters query after US President Donald Trump urged Boeing in a tweet to fix and “rebrand” its troubled jetliner.
Brand Finance had previously estimated the damage to the value of Boeing’s reputation at $7.5 billion immediately after the 10 March crash of an Ethiopian Airlines jetliner, the second fatal accident involving the same model in five months.
Boeing has the world’s most valuable aerospace brand, having seen the value of its overall corporate image rise by 61 percent to $32 billion in 2018, according to the same branding firm.
US President Donald Trump on Monday urged Boeing Co to “rebrand” its 737 MAX jetliner following two fatal crashes, but the planemaker said it was focused on fixing the problem and brainstorming over next steps to win back public trust.
What do I know about branding, maybe nothing (but I did become President!), but if I were Boeing, I would FIX the Boeing 737 MAX, add some additional great features, & REBRAND the plane with a new name.
No product has suffered like this one. But again, what the hell do I know?
— Donald J. Trump (@realDonaldTrump) April 15, 2019
Airline officials said they have held lengthy meetings with Boeing over the past weeks about how to regain the public’s support once the grounded planes are returned to service.
A full rebranding of the MAX was not likely, according to a person familiar with Boeing’s thinking, who noted that renaming an aircraft is a significant undertaking.
Asked about Trump’s advice, delivered in a Twitter post, a Boeing spokesman said rebuilding public trust was their focus, with pilots playing a pivotal role.
Updated Date: Apr 17, 2019 08:59:28 IST