Case Studies

February 20, 2024

Boeing Company reputation crisis day 41. With the erosion of Boeing’s reputation as backdrop, the aerospace and defense giant's equity is sinking as shareholders contemplate the long costly tail of reputation damage the firm faces. Its ROI since the January 5 safety incident when a door plug detached mid flight is under performing the FTSER US aerospace and defense Index (FTWIUSA502010Y) by 20.2%. This is comparable to the 18.2% equity under performance of Southwest Airlines relative to the US airlines index (DJUSAR) on the 41st day of its reputation crisis following its IT systems meltdown.

Boeing Company reputation crisis day 41. With the erosion of Boeing’s reputation as backdrop, the aerospace and defense giant’s equity is sinking as shareholders contemplate the long costly tail of reputation damage the firm faces. Its ROI since the January 5 safety incident when a door plug detached mid flight is under performing the FTSE US aerospace and defense Index (FTWIUSA502010Y) by 20.2%. This is comparable to the 18.2% equity under performance of Southwest Airlines relative to the US airlines index (DJUSAR) on the 41st day of its reputation crisis following its IT systems meltdown.

January 30, 2023

Southwest Airlines Reputation Crisis Day 35. Equity returns at 35 days normalized to the S&P500 returns are -6.2% (predicted -5.7%).

Southwest Airlines Reputation Crisis Day 35. Equity returns at 35 days normalized to the S&P500 returns are -6.2% (predicted -5.7%). It is under performing the Dow Jones US Airlines Index (DJUSAR) by 15.4%. The regression technology powering the equity impact model was derived from a study by Steel City Re, an ESG and reputation insurer.