Nightmare for Dreamliner Part 2: Japan

January 16, 2013

Dreamliner

As noted in a previous post, it does take time to work out technical problems. As aviation analyst Brendan Sobie stated: “There are always teething problems with new aircraft and airlines often are reluctant to be the launch customer of any new airplanes. We saw it with other airplane types, like the A380 but the issues with the A380 were different.” But the situation has been getting worse for Boeing and its Dreamliner with each passing day. On January 16, 2013, pilots smelled something burning and executed an emergency landing of a Boeing 787 in Japan. One person suffered minor injuries while using an exit ramp. The two Japanese airlines that use the Dreamliner both voluntarily pulled the planes from service for further investigation. Below are the announcements from All Nippon Airways (ANA) and Japan Airlines.

[Apology] Operation of ANA692
ANA 692 from Yamaguchi Ube to Haneda, Boeing 787, made an emergency landing at Takamatsu Airport at 8:47 (JST) on Wednesday, 16 January due to technical problem. All 137 passengers and crew were evacuated safely from the aircraft. The event was registered as a serious incident by Ministry of Land, Infrastructure, Transport and Tourism (MLIT). ANA will cooperate fully with the Japan Transport Safety Board, relevant authorities and Boeing to investigate the cause of the incident. All ANA flights operated by Boeing 787 have been cancelled and ANA’s fleet of 787 aircraft will remain grounded further notice.
We sincerely apologize to people concerned for the inconvenience and concern caused by this incident.
Please check your flight status here.
January 16, 2013
All Nippon Airways Co., Ltd.
Inquiries
Please contact ANA International Reservation and Information Center in your respective area.

Apology and Notice: Regarding JAL´s Operations of the 787-8 Aircraft
In response to an incident involving a 787-8 aircraft operated by another airline on January 16, 2013, JAL decided to cancel the operations of our fleet of 787-8 departing Japan the same day and January 17, 2013 to ensure complete safety. Operations of JAL´s 787-8 aircraft from January 18, 2013 will be decided after further assessment of the situation with the investigations.
We sincerely apologize to all customers and related-parties for the inconvenience and concerns caused.
Safety is of utmost importance to Japan Airlines and we ensure that every departing aircraft meets all safety standards before flight operations. Please be assured on your future travel with us.
For the operational status of affected flights, please refer to the following website for the latest updates.
January 16, 2013
Japan Airlines

Boeing’s response was “Boeing is aware of the diversion of a 787 operated by ANA to Takamatsu in western Japan. We will be working with our customer and the appropriate regulatory agencies.”
Below are other statements Japan Airlines has made as a result of problems with the Dreamliner:

Apology and Notice: Cancellation of Flight JL007 on January 7, 2013
On January 7, 2013 (local time), after JL008 arrived at Boston Logan International Airport from Tokyo (Narita) and after all passengers and crew members had disembarked the aircraft, smoke was detected in the aft section of the aircraft’s cabin. The fire department was called and a fire found to be from the auxiliary power unit battery located in the aft electronics bay (outside of the cabin) was extinguished. The outbound flight JL007 scheduled to depart that day was consequently cancelled. The cause of the incident is currently being investigated and additionally, subsequent to the event, Japan Airlines initiated and completed inspections on all other Boeing 787 aircraft in its fleet the following morning and found no irregularities.
We sincerely apologize for the concern and inconvenience caused to our valuable customers.
Safety is of utmost importance to Japan Airlines and we will continue striving to ensure safe operations of each and every flight, and on all our aircraft types including the 787 Dreamliner. Please be assured on your future travel with us.

January 10, 2013
Japan Airlines

Apology and Notice: Delay of Flight JL007 on January 8, 2013
On January 8, 2013 (local time), flight JL007 was preparing for take-off after departing Boston Logan International Airport bound for Tokyo (Narita), when a fuel system trouble required the aircraft to return to the gate. Necessary maintenance was performed on the aircraft and after ensuring that flight operations were safe, JL007 was cleared for departure and departed Boston 3 hours and 46 minutes later than scheduled at 3.46p.m. (East Coast Time). The flight arrived at Tokyo (Narita) on January 9, at 7.31 p.m. (Japan Standard Time). The cause of the fuel system trouble is currently being investigated.
We sincerely apologize for the concern and inconvenience caused to our valuable customers as a result of this mechanical issue.
Safety is of utmost importance to Japan Airlines, and we will continue striving to ensure safe operations of each and every flight and with all aircraft types including the 787 Dreamliner. Please be assured on your future travel with us.

January 10, 2013
Japan Airlines

Apology and Notice:
January 13, 2013: Aircraft Undergoing Maintenance Encounters Fuel System Trouble
On January 13, 2013, a Boeing 787-8 aircraft that had a fuel system trouble in Boston Logan International Airport on January 8, 2013, was at Narita Airport undergoing maintenance as part of inspections for that case when a different fuel system trouble occurred. This aircraft is not scheduled to be in service today and there are no effects on other flight schedules. The cause of the two cases is currently being investigated.
We sincerely apologize to our customers and all related parties for the inconvenience and concerns cause.
Safety is of utmost importance to Japan Airlines and we will ensure that every departing aircraft including the Boeing 787-8, meets all safety standards before flight operations. Please be assured on your future travel with us.

January 13, 2013
Japan Airlines

Questions to Consider

1. How have the recent events in Japan changed the situation for Boeing? What theories can be used to explain that change?
2. How would you rate the effectiveness of the response by ANA? What is the basis for your evaluation?
3. How would you rate the effectiveness of the response by Japan Airlines? What is the basis for your evaluation?
4. How would you rate the effectiveness of the response by Boeing? What is the basis for your evaluation?
5. How might the exists of multiple events for Japan Airlines created new demands for their crisis response?
6. Is there still any value in using experts saying problems are common with new planes in the risk communication for this case? Why or why not?


2012 in review

January 15, 2013

The WordPress.com stats helper monkeys prepared a 2012 annual report for this blog.

Here’s an excerpt:

600 people reached the top of Mt. Everest in 2012. This blog got about 9,100 views in 2012. If every person who reached the top of Mt. Everest viewed this blog, it would have taken 15 years to get that many views.

Click here to see the complete report.


Costa Concordia: A Year Later

January 13, 2013

CC Marker

Crises can linger for organizations. You could argue, the worse the crisis event the longer the effects can haunt an organization and its stakeholders. When crises involve a loss of life, memorial and anniversaries serve to maintain awareness of the crisis and the continuing need for crisis communication. The Costa Concordia is an example of the memorial and anniversary dimension of crisis communication and crisis management.
January 13, 2013 is the one year anniversary of the Costa Concordia crisis. The Cruise ship ran aground off the coast of the Italian island of Giglio and sank killing 32 people of the 4,252 passengers and crew on board the ship. The Ship is still in the water and removal may not be complete unitl September of 2013. It is only natural to commemorate and to remember such a terrible tragedy such as this crisis. Carnival Cruise is the parent company involved in the crisis. Carnival owns Costa Crociere SpA, the operators of the Costa Concordia. Most of the crisis communication has come from Costa Crociere SpA.

A number of events were planned to mark the first anniversary of the event including an unveiling of memorials to the victims, a minute’s silence held at the time of the crash, and a mass in honor of the victims at the church on the island of Giglio. Here is the statement from Costa Crociere SpA about the event:

A year has passed since the dramatic events of the Costa Concordia, events which have left their mark on each one of us.

It has affected those closest to us – our guests and our staff – and we have the sincerest compassion for the suffering they have all experienced, and for the grief of the families of those who are no longer with us.

On 13 January 2013, there will be a commemoration day on the island of Giglio in memory of those who lost their lives. We will renew our thanks to the citizens of the Island, as well as to all the rescue teams, who were so generous in assisting and supporting the survivors on that night.

One year on, on 13 January flags will be flown at half-mast at all Costa’s offices worldwide, and on all of our ships. A mass will be held in the ships’ theatres with a minute’s silence at the end of the service.

In Genoa, the home of our head office, the local staff will attend another commemorative mass at the Basilica of St Mary of the Assumption, Carignano. As a mark of respect for our different religions, there will be an inter religious mass in Paris, Hindu ceremonies in Mumbay and Bali, a Muslim one in Jakarta, a Buddhist one in Shanghai and a Catholic mass in Goa, Jakarta, Manila and Lima.

Be assured that I am personally committed, along with all of Costa Crociere and the rest of the cruise industry, to make every possible effort to prevent something like this from happening again. The safety of our guests and crew has always been and will continue to be our paramount priority.

We would like to thank all those have given us continued trust and loyalty. We hope that all our prayers on this sad anniversary, expressed in different languages and beliefs but with a single voice, will help lead us to a brighter future.

With sincere gratitude,

Michael Thamm
CEO

The memorial was a visually dramatic element for the ceremony. Here is a description of the memorial: “The day of commemorations began when a section of the rock that tore a 70-metre (230-foot) gash in the ship’s hull was returned to the seabed. A crane mounted on a tug boat lowered the rock beneath the waves. A memorial plaque affixed to its side was all that distinguished it from the rocky coastline of the island of Giglio.”
The event actually generated a great deal of controversy and media coverage (legacy and digital) before is transpired. Survivors were sent letters by Costa Crociere SpA asking them not to attend the event due to space limitations. The focus was to be on the families and friends of the vicitms, not the survivors. Costa Crociere SpA and the municipality of Giglio were running ceremony. Here is a sample of the conflict:
“’We are sure that you will understand both the logistical impossibility of accommodating all of you on the island, as well as the desire for privacy expressed by the families at this sorrowful time,’ Costa chief executive Michael Thamm wrote in the letter obtained by The Associated Press.
He expressed sympathies to the survivors and said he trusted that their thoughts and prayers “will help lead us to a brighter future.”
While some survivors said they understood that the families who lost loved ones deserved particular attention, many of those who are still struggling to get through each day said the letter added insult to their injuries — both physical and psychological. Some speculated that the letter was more about keeping disgruntled passengers, many of whom have taken legal action against Costa, away from the TV cameras that have flooded the island for the anniversary.”

There was a compromise as survivors who did arrive in Giglio were accommodated. However, the memorial and commemoration was much more contentious than was planned making a healing event divisive in some respects.

Questions to Consider
1. Why was the idea of Costa Crociere SpA planning an anniversary and memorial a good idea?
2. How could Costa Crociere SpA have executed the anniversary and memorial more effectively?
3. What other factors can account for the tension between the survivors and Costa Crociere SpA?
4. What are the purposes of a memorial for a crisis? Does it seem like the Costa Concordia memorial will achieve these purposes? Why or why not?
5. What are the dangers when an organization becomes involved in memorial efforts?
6. There is a closed Facebook page for Costa Concordia survivors. How might this page have been of use when Costa Crociere SpA was planning the memorial and anniversary?


Boeing Dreamliner Nightmare

January 11, 2013

Any company is worried when it launches a new product.  There are concerns over sales and performance.  One example is when new car model is offered.  People often shy away from the first year of a new car because there are “bugs” in the system that need to fixed.  The people buying the new product become beta testers and often have to endure recalls to correct the flaws that are expected to appear.  Now when your new product costs over $200 million and flies through the air, there is even greater concerns when bugs appear.  However, any new product has minor problems, even airplanes.

Boeings new 787 “Dreamliner” has been having its share of minor problems in January of 2013.  Early on there was a braking problem then a fuel leak that brought out emergency crews at Logan International Airport in Boston.  Here is part of the story about the fuel leak:

A Boeing Co. 787 Dreamliner jet operated by Japan Airlines Co. is towed back to the gate at Logan International Airport in Boston, Massachusetts, U.S., on Tuesday, Jan. 8, 2013. The plane leaked fuel while taxiing for departure today in Boston, in the second incident involving the Boeing Co. aircraft in two days. Photographer: Bizuayehu Tesfaye/Bloomberg

“I am 100 percent convinced the airplane is safe to fly,” Mike Sinnett, chief 787 project engineer, said on a conference call with reporters yesterday. “I fly on it myself all the time.”

Thus far, the airlines that have ordered the planes have expressed confidence in the new plane.

More recently, there was an oil leak and problem with the cockpit.  These problems were experienced by All Nippon Airways.  Japan has been the largest purchaser of the Dreamliner but you also have airlines in Qatar, India, Ethiopia, Poland, and the U.S. who have purchased and/or are using the planes.

The Dreamliner is revolutionary in its use of composites and fuel savings generated by using these new materials.  The minor problems have caught the attention of the Federal Aviation Administration (FAA) in the U.S.   The FAA has ordered a comprehensive review of the critical systems on the Dreamliner. This could further eroded airline and passenger confidence in the new airplane.

Here is the response from Boeing:

EVERETT, Wash., Jan. 11, 2013 /PRNewswire/ — Boeing [NYSE:BA] is confident in the design and performance of the 787. It is a safe and efficient airplane that brings tremendous value to our customers and an improved flying experience to their passengers.

The airplane has logged 50,000 hours of flight and there are more than 150 flights occurring daily. Its in-service performance is on par with the industry’s best-ever introduction into service – the Boeing 777. Like the 777, at 15 months of service, we are seeing the 787′s fleet wide dispatch reliability well above 90 percent.

More than a year ago, the 787 completed the most robust and rigorous certification process in the history of the FAA. We remain fully confident in the airplane’s design and production system.

Regular reviews of program and technical progress are an important part of the validation and oversight process that has created today’s safe and efficient air transportation system. While the 787′s reliability is on par with the best in class, we have experienced in-service issues in recent months and we are never satisfied while there is room for improvement. For that reason, today we jointly announced with the U.S. Federal Aviation Administration (FAA) the start of a review of the 787′s recent issues and critical systems.

We welcome the opportunity to conduct this joint review. Our standard practice calls on us to apply rigorous and ongoing validation of our tools, processes and systems so that we can always be ensured that our products bring the highest levels of safety and reliability to our customers.

Just as we are confident in the airplane, we are equally confident in the regulatory process that has been applied to the 787 since its design inception. With this airplane, the FAA conducted its most robust certification process ever. We expect that this review will complement that effort.

Contact:
Lori Gunter
787 Communications
+1 206-931-5919
loretta.m.gunter@boeing.com

 

Japan Dreamliner

Questions to Consider

1.  How bad is the situation for Boeing and what leads you to that conclusion?

2.  What role can public relations play in helping to address this problem?

3.  Some media outlets have found experts that say minor problems are common in new airplanes.  Who might this type of information help Boeing?  Hurt Boeing?

4.  Why should the FAA announcement be so significant in this case?

5.  How would you evaluate Boeing’s response and what is the rationale for your evaluation?

6.  What else might Boeing doing and how would those efforts help?

7.  How is publicity working against Boeing in this case?


AIG: Promotion Its Payback

January 9, 2013

AIGIn 2008, there was a global meltdown of the financial markets.  Most experts feel the financial institutions and lax government policies contributed to this financial disaster.  Many companies did not survive.  In the U.S., a number of financial companies survived due to a bailout from the Federal government.  Among those receiving a bailout was AIG, a financial/insurance company.  AIG received a little over $182 billion dollars in the bailout.  In return, the U.S. government received stock in the company.  Taxpayers had mix reactions about their money being used to bailout financial companies that had helped to create the problem.  The term “too big to fail” was used as a justification.  In other words, these large companies were important and their failure would make the economic situation worse.  Even some experts thought the U.S. government would not recoup the money it loaned AIG.

By the end of 2012, the U.S. government had sold all of its shares of AIG and turned a profit of over $22 million on the deal.  Still the reputations of financial institutions that took bailouts remained grim.  Most people still disliked the bailouts and had negative views of financial institutions.

AIG decided to promote its repayment and thank the people of the U.S.  On January 1, 2013, AIG launched its “Thank You America” campaign.  Here is a description of the effort and comments from AIG:

“We at AIG are proud of not only our work to rebuild the company, but also the work we do every day to help guarantee that customers and communities are prepared for the opportunities and challenges ahead – work we never stopped doing, even during the depths of the financial crisis,” said AIG President and Chief Executive Officer Robert H. Benmosche. “We thank America for allowing us to insure a brighter future and to bring on tomorrow.”

The new campaign will run for two weeks, and will include broadcast, online, and print placements. Television ads will run on high impact programming: sporting events, including NCAA Football Bowl Championship Series games and NFL playoff games; national morning shows including The Today Show and Good Morning America; and primetime television, including The Golden Globes, 60 Minutes, and Dateline. Print ads will appear in upcoming issues of major publications, including The Economist, The Financial Times, The Houston Chronicle, The Los Angeles Times, The New York Times, USAToday, The Wall Street Journal, and major trade journals. Online ads buys include a masthead and mobile roadblock on YouTube, and homepage takeovers of nytimes.com, MSN.com, WSJ.com and Yahoo!. The campaign will also be promoted on social media and can be seen on AIG’s YouTube channel.

AIG promoted the campaign on social media.  Its Facebook page had links to the campaign, its videos were on YouTube, and here is a Tweet about it:

AIG’s Thank You, America #ad just ran on the #BiggestLoser Are you watching? RT if you saw it, or catch it again here http://www.youtube.com/AIG?x=us-en_showcase2_86_15 …

The campaign highlights the pay back but also shows the different ways AIG has been helping Americans recover from disasters such as Hurricane Sandy.  The message is a positive one of repayment and recovery for AIG and the U.S. We will have to see how people react to these messages.

Questions to Consider?

1.  What are the benefits to AIG of this campaign?

2.  What are the dangers to AIG of this campaign?

3.  Why would AIG be using such a heavy push in social media and legacy media?

4.  If you were at AIG, how would you defend taking the original bailout money?

5.  Why do financial institutions have a lingering reputation problem?

6.  What other actions need to be taken to help financial institutions repair their reputations and why will these actions help?


Nike “Gold Digging”

August 16, 2012

The US women just completed an amazing Olympics.  Blog writer loves track and field so I will mention the world recording 4 by 100 relay and a blistering 4 by 400 relay by the women runners.  Allyson Felix stood out by winning 3 gold medals and making the finals of the 100 meters.  If you like other sports there are story lines for those as well.

One thing the Olympics cannot escape is sponsorship issues.  The negatives for the US women revolved around sponsorship issues.  The issue as Rule 40.  Basically athletes cannot use the Olympics to market/promote no-Olympic sponsors.  That means Adidas is okay but not Nike.  So athletes like Sanya Richards-Ross complained about it.  This was commercial not free speech and detracted from Olympic performances.  The Olympics sets rules and participation is an honor not a right.  Detraction number 1.  Detraction number 2 was the controversy over the women’s soccer team donning shirts reading “Greatness has been found.”  It was considered gloating and in poor taste.  Again, it becomes about the sponsors and what they want harms the athletes.

Now Nike has a new shirt that is raising eyebrows and protests.  As full disclosure, I do not hate Nike.  In fact I own many Nike shoes and running apparel.  However, there are times when even companies you like do things that are questionable.  The new shirt is for women and says “Gold digging.”  The shirt is meant to be funny.  Gold digging is traditionally a women looking to romance/marry for money.  In this case it means winning gold at the Olympics.  We can question (1) is the joke funny at all and (2) is it more offensive than funny.  Here is one take on it:

We don’t like to be super sensitive about these things, but something about this seems… off. The t-shirt features metallic gold lettering and Nike’s signature check logo and is only available for women (because women presumably love to be called gold diggers). But we can’t help but wonder if some ladies will be less than pleased with this kind of depiction.”

Questions to Consider?

1.  Is the shirt situation a crisis or an incident for Nike?  Explain your decision.

2.  Is it unethical for non-Olympic sponsor to pressure athletes into marking for them during the Olympics?  Why or why not?

3.  What arguments can be made for and against the US Women’s Soccer Team wearing the victory shirts?

4.  Overall, how have Nike’s actions impacted potential customers, especially women?

5.  If you were Nike, how would you defend the gold digging shirt?Image


Apple vs New York Times: Not Really but It Seemed Interesting

February 21, 2012

Anyone following Apple knows that the New York Times wrote a series of very critical articles about the Foxconn that makes iPads and iPods for Apples.  And to be fair, the facility makes produces for other electronics companies as well.  The focus of the article was on the working conditions and why electronics are no longer manufactured in the U.S.  Most people who read the articles would agree that the articles cast Apple in a negative light.  Moreover, a number of protests against Apple were appearing at this time as well.  You can see the earlier case about it at this site.

 

That brings us the supposed fight between Apple and the New York Times.  A number of online sources reported that Apple had snubbed the New York Times by not providing its reporters early access to its OS X 10.8 Mountain Lion operating system.  Here is a sample of the reports:

 

Apple Shuns The New York Times in OS X Mountain Lion Coverage Over Foxconn Reporting

Friday February 17, 2012 7:14 am PST by Eric Slivka

With yesterday’s announcements from Apple regarding its forthcoming OS X 10.8 Mountain Lion operating system, a number of media outlets had been provided with advance briefings and early copies of the software for the purposes of having reviews prepared and ready to go. When Apple published its press release and went live with OS X Mountain Lion information at 8:30 AM Eastern yesterday, the embargo was lifted and all of the pre-briefed publications immediately posted their stories on the topic.

 

February 21, 2012

Snubbing the Media — Strategy or Revenge? Apple’s Stiff-Arming Of the NY Times After Paper’s Foxconn Exposé Offers a PR Lesson In Access Journalism — Gadget Giant Leaves Gray Lady Out In the Cold By Breaking News Elsewhere

Times all-star contributing columnist David Pogue got through to Schiller, but no regular Times journalist could make a dent. The reason for all this disrepect, the Washington Post‘s Erik Wemple speculates, was the hard-hitting Foxconn series the Times’ ran last month. Foxconn assembles roughly 40% of the world’s electronic devices, including those sold by Dells, HP and Sony — but the Times‘ series singled out Apple in way that many, including CEO Cook, thought was misleading and unfair. Was the cold shoulder the Gray Lady got this week really payback for the series? Reporters and editors at the Times seem to think so, Fortune reports.

The implications from the reporter were that Apple was purposeful not providing the New York Times with same early access to information it was providing other journalists.  In essence, the view was Apple was punishing the New York Times for its negative story.  This is a serious charge.  Organizations have every right to decide who they send information to and who they do not.  This point should not be disputed.  However, denying access because of a negative story is a dangerous measure.  At its worst, such an action is an attempt at censorship.  The message is, “mess with us and you pay a price.”  Journalists need to be free to write whatever they feel is appropriate and accurate.  PR people should not corrupt the system by trying to leverage any form of influence over them.  Here is how report described the situation:

 

Was the cold shoulder the Gray Lady got this week really payback for the series?  Reporters and editors at the Times seem to think so. Wemple got two quotes, one off the record, one on:

“They are playing access journalism … I’ve heard it from people inside Apple: They said, look, you guys are going to get less access based on the iEconomy series.”

“We’re never happy with our access to Apple. We never have been. Apple is a difficult company to report on,” says Damon Darlin, the paper’s tech editor. When asked how big a deal is the Journal‘s exclusive with Cook, Darlin responds: “Talking to the CEO of one of the largest technology companies, the highest-valued company of the world? Yes, we would like to do that. They know that.”

However, most reports were amended because there is no proof purposeful action by Apple to freeze out the New York Times.  Apple had briefed reporters before the release but asked for an embargo on stories until a specific time.  Most people based the negative actions by Apple on the New York Times key technology reporter David Pogue’s story was “slow” in appearing after the embargo was lifted and used information from the news release, not the information found in the early briefings.  Later reports included other reporters saying they saw Pogue waiting for a briefing and Pogue stated he had access to the early information.  In the end, the story was a non-story but did allow reporters to vent their frustration with Apple’s generally unresponsive nature to “the media.”

Questions to Consider

1.  If a company was restricting access to a media source after a negative story, could you justify that action?  Why or why not?

2.  What ethical issues are raised in this case especially those about quick, online reports?

3.  What do the tone of the stories saying about Apple’s reputation and relationship with many online and legacy media reporters?

4.  What responsibility does David Pogue have for correcting the story that he had been snubbed by Apple?  How did you reach that conclusion?

5.  Why has Apple used a limited access policy toward the media?  Has it been an effective strategy?  Why or why not?

 


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