Public Relations Strategy in Rebuilding Airline Company Reputation Following Aircraft Crash
Public Relations Strategy in Rebuilding Airline Company Reputation Following Aircraft Crash
Public Relations Strategy in Rebuilding Airline Company Reputation Following Aircraft Crash
INTRODUCTION
The airline industry increased from the mid-1990s to the beginning of the new millennium—the best
period for the airline industry in the history of commercial aviation. The biggest growth boom was
achieved due to an increase in GDP worldwide driven by a new economic wave. Then, globalization
has driven a more significant demand for traveling. Airlines are experiencing healthy growth of around
4-6 percent per year. However, this encouraging situation did not continue in the following years. In
early 2000, there was a slowdown in the world economy, and the growth phase ended.
Moreover, the terrorist attacks of September 11, 2001, and the SARS virus in 2003 further
worsened the commercial aviation industry. In 2004, the aviation industry was probably facing its most
challenging period (Chattopadhyay, 2015). The aviation industry is also experiencing its worst situation
since the Covid-19 pandemic in 2020.
Reputation in the aviation industry is a determining factor for business survival, including the
airline industry. Many experiences of companies in the industry have imparted lessons (Liehr-Gobbers
& Storck, 2011). A company's reputation is closely linked to the perception built by the company's
founders. The author will be discussing how Lion Air dealt with the crisis besetting its reputation
following the incident in October 2018. One of the newest aircraft produced by Boeing, a 737 Max-8
with registration number PK-LQP crashed on 29 October 2018 into the waters of Tanjung Karawang,
West Java, while flying from Jakarta to Pangkal Pinang. Due to the accident, Lion Air suddenly had to
face an unfortunate situation within a short period.
The present study that employs case studies can reference how Lion Air dealt with a critical
situation that greatly affected its reputation as a company. The first aspect of the crisis-affected its
internal organization, services, and passengers (consumers), which then expanded to other aspects of
the aviation industry ecosystem. Stakeholder participation of Lion Air must be managed and maintained
by the management, particularly the corporate public relations division. Experience shows that it can
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only take as short as eight months following an accident for an airline company (Adam Air) to be forced
to cease operations.
Building a reputation is not easy for companies in this era of information. Any person can
access information on a company from various media. One contributor to the phenomenon is the rapid
proliferation of social media, speeding up the spread of information. A business's positive reputation
can be achieved if its public relations department manages communication activities well (Edwards et
al., 2014). This image-building endeavour is in line with the opinion of Ruslan that daily public relations
activities facilitate two-way communication between the company and an organization. Capacity
building with the public aimed at creating mutual understanding and support towards a common goal,
policy, goods, or service production, and so forth, to foster the growth of the company and its positive
image.
According to Newsom et al. (2012), a public relations department must carry out planned
measures to influence public opinion outside the company through practical communication activities.
The desired opinion is the organization's or company's positive reputation or corporate image. Further,
there is an interconnectivity between a company's identity, name, image, and reputation. Corporate
identity is "the values and principles employees and managers associate with the company. Corporate
identity, whether disseminated, is an image of how the employees work, how products are
manufactured, how stakeholders are served, and others. Corporate identity is derived from the
company's experience since its inception, representing its accumulated achievements and shortcomings
(Ginesti et al., 2018).
In managing and maintaining the company's corporate image, the Corporate Public Rations
Department of Lion Air used an approach deemed unorthodox among companies operating in
Indonesia, particularly in the aviation industry. The public relations department adopted a stakeholder
approach, which is still a new phenomenon in the aviation industry. The approach calls for the company
to refrain from being reactionary to the opinions of the public but instead continue to focus on providing
high-quality service as a privately owned company with a good reputation in the eyes of the government,
service users, and partners. Positive perception continued to be built without seeking subjective or
arbitrary justification. In this context, the communication and public relations strategy of Lion Air
attempted to shape positive perception through a stakeholder approach.
The period of crisis experienced as a disaster for the corporate is heavy and severe. Therefore,
effective communication is needed to reach all elements of stakeholders (Anderson-Meli & Koshy,
2020; Avraham, 2013). This need is required because ineffective communication during crises can
tarnish the organization's reputation both in the eyes of the public and members of the organization
(Canny, 2016; Zaremba, 2014).
Various similar studies have shown advantages in handling crises that occur in plane crashes.
However, this research paper fills in the gaps in how the public relations strategy is integrated into the
case of Lion Air and several airlines in Indonesia. The uniqueness of this research paper lies in several
special efforts planned in an integrated and strategic manner by corporations to improve public
perception and understanding of the disasters that occur and give confidence to airlines.
RESEARCH METHODS
The research approach used is the qualitative method that emphasizes the richness of the
author's data. The qualitative research approach reveals specifically and in-depth the issues discussed
(Lichtman, 2013) and, in this case, how a commercial airline company comes out of a crisis when an
accident occurs. The single case study method is used to discuss problems experienced by the Lion Air
company (Ridder, 2014) to maintain and build the company's reputation. The more detailed the data
collected based on interviews, documents, and observations, the better qualitative research. This
descriptive research focuses on interviews, observations, and document gathering to be compiled and
synthesized to become accurate data.
Qualitative research describes a series of activities that aim to acquire data in its original form
without modification, emphasizing meaning. Here the author uses a qualitative descriptive method as
the research intends to explore. The data reflected the strategies adopted by Lion Air's management as
the object of the research to determine what strategies were used in facing the crisis during the aircraft
crash and its aftermath to rebuild the company's reputation. The case study at Lion Air becomes more
focused because it covers a social system unit that includes people, groups, individuals, customer
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communities, and their families. Objects and research subjects are also in the context of natural cases
(Edwards et al., 2014).
Meanwhile, the research method involves case studies that attempt to compile and sort data into
manageable units to identify patterns that can be studied and examined closely by the author to decide
what can be used as the output (Moleong, 2012). The case study method of research can be seen as a
method or strategy to uncover cases. To gain in-depth knowledge, case data can be derived not only
from the cases being scrutinized but also from any person who has knowledge or is very familiar with
the case. Data or information can come from many sources but should be limited to those about the case
at hand. Interviews were conducted with three resource persons to gain material for analysis and
subsequent comparison with handling similar cases in Indonesia and using secondary data in the form
of news links in news media.
According to Stake (2006), a case study as a research method plays an essential part in research
and uncovers the specificities and unique characteristics of a case being studied, which represent the
main reason the research was initiated. Stake added that, as such, case studies need to extract
information and undertake an in-depth analysis of all aspects relating to the case, whether in terms of
nature, activities, history, environmental and physical condition, functions, and others.
It is expected that the present qualitative research using the case study method will expose the
strategies of Lion Air's management as the object of the research in determining the strategies to adopt
to rebuild reputation during and after an aircraft crash.
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(Manurung & Mandalia, 2015). The concept of identity and the corporate image is related to the
attributes in the public mind and is understood as reputation. This term is constantly debated among
academics with different backgrounds, usually overlapping from various associated disciplines
(Camara, 2011). The understanding is created out of information. Meanwhile, an image is a specific
image, description that fits the actual reality or presence, various policies, personnel, products, or
services of an organization or company (Camara, 2011).
From the opinions outlined above, the image can be defined as an impression that is produced
from an understanding of the available information that is in line with the facts. Every company possess
an image based on the judgment of the customers, potential customers, banks, company employees,
competitors, distributors, suppliers, trade associations, and customer movements in the trade that has
their view of the company (Badri, 2009).
The accident involving Lion Air's aircraft registration number PK-LQP on 29 October 2018
above Tanjung Karawang waters, West Java, serving a Jakarta-Pangkal Pinang route, is an incident that
is worth reviewing from a communications science perspective. The event undoubtedly made a
significant impact on the operations of the company. The relevant discussion on corporate
communication in this context would be how the airline's management mitigated the situation using
communication strategies to regain the company's public reputation following the disaster. The
management conducted a "stakeholder mapping" to help them identify to whom specific information is
shared. The stakeholder mapping exercise is meant to gain a complete picture of an event and where
the respective holder is positioned or linked respectively to such event.
From the interviews conducted in the field, Lion Air's management saw the disaster as
something that they hoped had never happened (an unexpected situation) and an unpredictable situation.
As the first step, the management initiated a public relations approach for the traveling public to receive
complete (not partial) information from a credible source.
According to Coombs & Holladay (2011), who found the typology of crisis, it is explained that
a crisis depends upon the stakeholder's perception. Such stakeholder perception was then made as a
reference by the Lion Air in determining the most appropriate public relations strategy. The company's
management recognized that if the information were to be conveyed incompletely and partially, the
company would not be unlikely to experience a management crisis.
Lessons were drawn from a similar case in the national aviation industry involving the company
P.T. Adam Sky Connection Airlines (Adam Air). Adam Air flight 54, DHI- 574, which was served
using Boeing 737-400 registration number PK-KKW, flew between Jakarta-Manado via Surabaya.
During the ill-fated flight, it carried 96 passengers and six crew members before it disappeared over
Majene sea, West Sulawesi, eventually causing the company to file for bankruptcy.
The strategic measures referenced earlier would allow the company to maintain its reputation
through a crisis management communication strategy. The communication strategy employed by Lion
Air's public relations division in managing the crisis warrant further study. From the company's
organizational perspective, in the operation of its business, the policies of Lion Air's management in
formulating strategic steps during the crisis is a part of its public relations strategy to maintain the
company's image in the eyes of Indonesian consumers.
If Lion Air chose the wrong steps to respond to the incident, it would likely have disrupted its
work system or even jeopardized its entire business (driving it to bankruptcy). The author believes that
the crisis would be an exciting study in communication, particularly the company's effort to maintain
its corporate image. There should be a well-ingrained realization that the consequence of a crisis and a
weak capacity to anticipate such a crisis necessitates anticipatory measures to be built as a framework
that can be referred to as crisis management. The management's policies in dealing with an event
constitute decisions that the organization must make quickly to prevent the incident from creating
adverse conditions.
Such an event is a pivotal point or momentum that can lead to downfall or greatness. Such
direction would be determined by the established foundation, stance, and actions taken in response to
the crisis. A crisis is a turning point that can make a situation better or worse. Even a crisis moment can
be seen as an opportunity to communicate strategic change for the corporation by building and
maintaining the sustainability of its reputation, utilizing issue management and crisis management as a
significant effort on top of a positive corporate culture (Austin et al., 2017).
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strategy to map which media are reporting and disseminating the news, including opinions from
individuals and experts.
Lion Air's management then sorted and built a "large picture" of the opinions that prevail within
the public and to what extent they impact are relevant to the company's reputation. One interesting
situation that the company responded well to be the "communication culture" of the Indonesian public,
which efficiently receive information and quickly forget them, which the company understood well.
Also, during disasters that involve a high number of casualties, one should never begin with "I am not
at fault. Therefore, I am not responsible".
Utilizing the "information map" produced from the "communication holding," Lion Air's
management then sorted and selected relevant information to be communicated to the public as the
largest stakeholder in the aviation industry. They were not influenced nor bound by the opinions of
analysts, experts, and other sources appearing on television or other media. The management then
inserted "special messages" to ensure that its business operation could continue. In that context, despite
the "difficult times," Lion Air's management continued providing service to its consumers in Indonesia.
It even provided service that was felt by the customers as being "more compassionate," such as when
they asked passengers of Lion Group-operated flights to pray for the victims before the aircraft took
off.
Communication holding is very relevant to the situation and communication culture of the
Indonesian people. It requires an organization to refrain from reacting to the current situation but still
selectively maintain communication with all stakeholders. Information supplied to the public must give
the impression that they side with the public without compromising professionalism as a company
undergoing a crisis. This strategy is very appropriate to be adopted when dealing with the Indonesian
public, who are susceptible to sensitive information, requiring caution when issuing comments or
opinions as their acceptance of information determines their perception of an event.
The strategy of communication holding (holding information from dissemination) during a
post-accident crisis provides room for the management to analyse information that is relevant to the
company (internally), to be subsequently released to the public as a stakeholder. Once proper
communication methods are implemented by Lion Air's management, humanitarian services are
provided to the stakeholders after they have complete control of information.
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releases for media representatives after flight JT 610 was declared to have crashed. The management
focused on the airworthiness of the aircraft that it operates. This concern was aimed to make the public
understand the airworthiness and safety requirements that apply in the aviation industry. In this regard,
the company assured the public that it has complied with the rules and regulations established by
regulators.
As another industry stakeholder, the media obviously cannot be ignored. In this context, the
media must be made a partner in conveying a positive message to the public. Current communication
technologies allow the media to communicate to a broader audience and cover every second of an event,
whether broadcast or electronic.
As part of its crisis management strategy, the management of Lion Air created an official
information channel through the Lion Newsroom (http://www.lionair.co.id). To this day, the airline's
management continues to engage in 'correspondence' with the public to provide them with 'official
comments' on information issued by the government and conduct media monitoring.
A relevant source of information performs a highly strategic function in managing a crisis. The
crisis management strategy of Lion Air's management was to restrict the supply of information to
provide a complete message to the public. This aim was expected to foster a positive relationship with
the community and protect the company's reputation by creating positive opinions and perceptions.
According to Edwin and Emery (1988:32), the public relations function within a profit organization is
responsible for creating a mutually beneficial relationship between the company or organization and
various elements of the public in a planned and organized manner.
By restricting the supply of information, the management was able to 'control' information.
Messages conveyed through the organization's official channel played an essential part during the crisis.
In this context, the company provided relevant and complete information that represents the public
interest as a measure to reduce the adverse impact borne by the company's reputation because of the
accident.
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itself. In this case, Lion Air assigned Tugu Asuransi as a "communicator" to convey a positive message
from the management.
Referring to the communication theory put forward by Laswell (1948). “Who, Says What, In
Which Channel, To Whom, With What Effect,” is concern of Lion Air's management took into grave
account the potential impact of a positive message by the spokesperson. The opinion perception of
stakeholders greatly influences the reputation a company enjoys today. Lion Air's management
implemented a brilliant strategy. Without directly taking over the stage (using its communication
channel), the stakeholders saw the humanitarian values and reputation of the company in a positive
light.
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conveyed through the organization's communications play a vital role during a crisis. In this context,
the company provides information impacted by the crisis and works towards minimizing the damage
and adverse impact that the crisis brings on the company.
Communication relating to a crisis occurs during three phases of the crisis: (1) prior to the crisis, (2)
during the crisis, and (3) following the crisis. Of the three phases, the crisis phase is the most critical,
as the action or inaction of the company dramatically affects public opinion. During the actual crisis,
stakeholders scrutinize how the organization handles the situation. If the company inappropriately
handles the crisis, it may exacerbate the situation. An essential feature of crisis communication is
managing the complexities of organizational communication.
CONCLUSION
Based on the field research, the public relations strategy implemented by the management of
Lion Air to restore its reputation. The crisis was following the crash of its aircraft registration number
PK LQP. The conclusion is that a communication strategy utilizing a stakeholder-oriented approach has
provided Lion Air's management with room to manage information aimed towards providing positive
information to build perception among the stakeholders that are in line with the company's expectations
in maintaining its reputation.
Lion Air, specifically in the crisis period due to an accident, applies six public relations
strategies such as 1) handling news in a crisis period, 2) internal perception within the company, 3)
conducting "communication holding," 4) centralization of information source, 5) business partner as
"communicator," and 6) adopting a humanitarian approach. These six public relations strategies have
provided an understanding to the public and its customers that Lion Air is a company that is responsible
and capable of solving a series of problems resulting from accidents. Finally, a responsive framework
that can be used when a company faces a crisis will serve as a reference for the management to maintain
and manage its reputation.
The research result implies that the aviation industry has a particular anticipation program to
resolve the decline in reputation due to accidents. Similar programs must be organized and managed as
emergency training for every commercial airline company.
Recommendations for future research are directed to be carried out with an empirical approach,
especially to examine various factors that may have a psychological and sociological effect on
passengers and the public.
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