Boeing pays families of crash victims: Starting its long-haul journey to redemption

Boeing is paying of families of the 346 victims of the Lion Air Flight 610 and Ethiopian Flight 302 accidents US$144,500 each. According to Reuters, the amount will be drawn from the US$50 million fund which was launched in July this year, to provide near-term financial assistance to the families. Reuters also reported that family members of the victims do not need to waive or release the right to litigate in order to receive the US$144,500.Boeing previously said that the US$50 million fund represents the initial expenditure of a US$100 million pledge by Boeing to address family and community needs of those affected by the accidents. The remaining US$50 million in funds will support education and economic empowerment in impacted communities, according to a press statement by Boeing. In addition to this initial assistance package, Boeing also tied up with non-profit organisation Global Impact to establish a separate charitable fund known as the "One Boeing Support Fund", which offers Boeing employees and retirees a way to contribute voluntarily. Marketing has reached out to Boeing for additional information about the fund.Chairman, president and CEO of Boeing, Dennis Muilenburg, said the recent 737 MAX tragedies weigh heavily on the employees at Boeing and it continues to extend its "deepest sympathies" to the families and loved ones of the victims."The opening of this fund is an important step in our efforts to help affected families. We thank Ken Feinberg and Camille Biros for their important work leading this effort," Muilenburg added. Feinberg and Biros, renowned experts in establishing and oversee victims' compensation funds were retained by Boeing in July to designer and administer the initial assistance package.Nick Foley, president Southeast Asia Pacific and Japan, Landor said this is a wise move by Boeing and will go some way in re-establishing trust with those communities devastated by the 737 Max 8 crashes. He added that Boeing's current response feels genuine, considered and indicative of a brand that is seeking to set things right."It seems that Boeing have been genuinely affected by the accidents involving two of their aircraft. So far, they are doing everything one would expect to restore trust with the public and endeavour to ensure the Boeing brand is, once again, viewed with the appropriate esteem," he said. However, Foley stressed that Boeing "would be well advised to realise this is not a short term game". In fact, a short-term approach, lacking sincerity, will have "far-reaching major repercussions" for Boeing, Foley said. He explained:The path to redemption will be long and subject to unpredictability."Staying true to initiatives that genuinely rebuild communities affected by the mid-air disasters is paramount to restoring trust in Boeing," he said.  Previously in March, Foley told Marketing he expects the damage to the brand to be low as most people then were speculating on the reasons for crash. Since then, multiple media outlets reported that the system designed to help the planes avoid stalling allegedly malfunctioned. Meanwhile, the Wall Street Journal reported that Indonesian investigators have concluded that "design and oversight lapses" played a key role in the fatal crash of the 737 Max 8 aircrafts.Even so, Foley still maintains that the damage to the Boeing brand will be low, partly due to it being a B2B brand. He explained that travellers typically attribute an air accident with an airline, which is a B2C brand, as opposed to a supplier to an airline. Additionally, Boeing has taken all the steps that one would expect under these circumstances, such as working closely with airlines directly affected by the two accidents, along with those that have added "heavily" the new 737 Max 8 jets to their fleets."The manufacturer is also partnering with the respective authorities in the US to properly assess its aircraft and ensure that full testing is implemented ahead of any return to the skies," he added.[Marketing is holding its PR Asia conference in Singapore once again this year. Join us for a series of exclusive case studies, interactive and thought-provoking discussions this 13-14 November in Singapore and discover the latest strategies, insights and groundbreaking ideas to elevate your PR practice. Register now!] "A price cannot be placed on someone's life. As such, any monetary compensation in instances such as this will be viewed as the least the brand can do," Carolyn Camoens, managing director Asia, Hume Brophy said. At the core of the twin 737 Max 8 crashes lies a safety issue and according to Camoens, trust will only return when Boeing is credible with assurances on that front."To that end, more than the compensation, its recent announcement about strengthening the powers of engineers will have a positive effect," she said.Nonetheless, she said the fact that Boeing has been upfront and proactive in providing updates says a lot for the brand. According to her, its homepage carries a banner which leads to a page offering very detailed updates and resources on the issue, and such a move is "highly commendable", she said. She added that Boeing should keep close and regular engagement with those representing the victims to show that it is truly sincere in helping the families."It’s too soon to say if it has overcome the crisis of confidence. The issue is still very fresh, it’s still playing itself out, and the stakeholder universe is so diverse that t’s hard to know for sure," she explained. For example, the average traveller might have limited awareness and therefore, may not be checking if they will be on an Boeing 737 Max 8 on their next flight, or even a Boeing. However, there may be executives who still have reservations about their next fleet being Boeing.On the other hand, Be Strategic’s chief strategist Ashvin Anamalai said: "Boeing did nothing and everything wrong at the same time by treating their customers, as customers.""When dealing with loss of life, a certain level of accountability is expected. Especially in this era where privacy is a luxury and people are as connected as can be, each death must be taken as a unique case, to understand the needs of the families left behind," he explained. As such, it is important for Boeing to get personal, as each family will be left with different problems following their losses. "Some may have lost their sole family breadwinner, leaving them in a very distressing situation," he said.A crisis such as this can really show what a company is made of. It can also be a chance to demonstrate humanity rather than a focus on the bottom line.At the end of the day, however, it is the communications and actions, along with accountability and improvement to manage its integrity as an aviation leader, that will still prove Boeing's sincerity and help its brand image.[A+M’s PR Asia will come to Malaysia this November, gathering together some of the finest minds in industry to explore the exciting and developing world of digital PR. Join us for a series of exclusive case studies, interactive and thought-provoking discussions at PR Asia on 20 November in Kuala Lumpur, Malaysia. Register now.] (Read also: Public trust on Boeing brand remains in question following fatal 737 MAX crash)(Photo courtesy: Boeing Facebook page)