Boeing's brand value has taken $7.5bn hit after deadly crash, report finds
On Sunday (10 March), Boeing's 737 Max 8 plane crashed in Ethiopia just seven minutes after taking off, killing all 157 people on board.
Boeing needs to take a proactive strategy to the crisis, says Brand Finance chief executive
Boeing's brand value has crashed along with it, as the aircraft manufacturer has seen its name lose $7.5bn in brand equity since the tragedy, according to a report from Brand Finance.
Federal governments in the US, EU, Canada, Turkey, China, India and Australia have all grounded Boeing's 737 Max 8 aircrafts. Airlines in Mexico, Brazil, South Africa and Russia have also grounded the model. In total, more than 60 countries and airlines have suspended such flights.
Brand Finance estimates that Beoing's revenue from its 737 jets is around $24bn, roughly a third of the company's profits.
David Haigh, chief executive officer of Brand Finance, said all eyes are on Boeing as it enters crisis management mode to save the brand.
"If Boeing is to retain its status as the world’s most valuable and strongest aerospace brand, it needs to adopt a proactive rather than reactive strategy and remain wholly transparent throughout the investigation.
"This could well be just a temporary blip in the long run for Boeing. We’ve seen brands such as Toyota suffer from similar high-profile reputational crises and who have since seen their brand and business value recover."
Brand Finance valued Boeing's brand at $32bn at the beginning of the year. Though the company has taken a severe hit – its shares have dropped by 11% since the crash – it still ranks as the top brand in the aerospace category.
According to Brand Finance, Airbus is the second-most valuable brand at $13bn.