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Background of Indonesia AirAsia Flight 8501

Question:

Analyse the Case Study of Airaisa Airline Plane 8051 Crash in 2014 Decision Making & Problem Solving.

The report is regarding the Indonesia AirAsia Flight 8501 (QZ8501/AWQ8501) which was scheduled to carry passengers from Surabaya, Indonesia, to Singapore.  The international passenger flight was operated by AirAsia Group affiliate Indonesia AirAsia.  The flight met with an accident on 8 December 2014, while operating on the route, crashing into the Java Sea due to bad weather. The incident killed all 155 passengers and seven crew on board. The debris and human remains were collected two days later in the Java Sea.  The wreckage was found on the sea floor on 3 January 2015(ABEND, 2015). The flight data recorder and cockpit voice recorder were recovered by 13 January. The aircraft was hindered during an unusual steep climb and had been incapable to recuperate. On 1 December 2015, the Indonesian National Transportation Safety Committee stated that the incidence was caused due to the sequence of events causing crash due to malfunction in the rudder travel limiter unit. The pilots’ reply to the 104-degree roll of the aircraft and miscommunication lead to chain of events leading loss of aircraft. The air crash became the second-deadliest in Indonesian territory, behind Garuda Indonesia Flight 152 in 1997. It was considered as the second deadliest crash involving A320 and the third deadliest involving an Airbus A320 family (Lab, 2015).  The aircraft crash lead to series of consequences generating multiple allegations on the AirAsia. It further leads to economic crash and had a long term impact (Smith, 2015). 

The report is related to examination of Air crash of Indonesia AirAsia Flight 8501 (QZ8501/AWQ8501). The incidence leads to series of impacts on the Indonesian economy. Such incidence creates distrust in the airliner and hence creates disruption.  The AirAsia incidences lead to multiple theories against their goodwill. One of the main purposes is to examine the consequences that lead to this event and further affected the unsettled events coming up in future.  AirAsia suffered widespread allegations due to the incidence and witnessed a series of fall in the share market. The group is a pioneer of low -cost model in Asia, and has built a strong reputation for affordable and safe flying.  This has further questioned the credibility of AirAsia’s long history in aviation industry.   An analysis into the matter and how it affected company’s position wherein causing a fall in the share price. It showcases the investor behavior due to the fall in the stock market during the period. It further provides recommendations to the company and the readers regarding the air crash. This has further greater implications on the airliner in order to reduce such incidence (Trask, 2016).

Causes and consequences of the crash

The air crash was known as one the second-deadliest incidence in the history of Indonesian territory. It has affected people trust over the airliner and hampered the people’s faith for a long time-period. The fatal crash occurred due to bad weather condition.   The deadliest incident created a deep concern in mind of people regarding the credibility of aircraft. The probable reason behind the crash was due to the bad weather. This accident has created a concern among people, whether to trust the brand or not. AirAsia is known across the world for holding minority interest in countries like Thailand, the Philippines, India; the low cost airliner is carrying out facilities in order to manage the operations in the cost-friendly way.  Incidence like this has questioned the credibility of the airliner and shaken the faith of people. AirAsia has flown more than 200 Million passengers across the world, including its long haul arm AirAsia X. There has never been an incidence regarding the lost of flight or accident. The apparent incidence caused due to the miscommunication in between the pilot and the co-pilot due to the technical problem. The Airbus was en-route to Singapore from Surabaya, wherein it lost the contact with air traffic control after 42 Minutes after takeoff. Seven crew members and 155 passengers were on board. The wreckage and bodies were later collected from the Java Sea. There were multiple theories suggesting the reason behind the incidence. Investigators state that the Airliner lost the control of the plane leading to accident (Otto and Pasztor, 2015).  Another theory suggests that the incidence was caused due to technical problem with the Rudder Travel Limiter; The estimated interruption to RTL occurred around 3 times in a space of 13minutes resulting in disengagement to auto-pilot.  The loss in auto-pilot function created a miscommunication in between the pilot and the co-pilot leading to manual fly.  According to the information collected from the two black boxes; there was a miscommunication in between the two pilots.  The pilot instructed the co-pilot to pull down which literally means sending the plane to 38,000 feet.  There is a literal misrepresentation of instructions as given by the pilot to the co-pilot (Barreveld, 2015). The findings from the year long investigations suggest that there was no standardised terminology. Co-pilot was initially taken control of the plane as the pilot was fixing the RTL. Further investigations suggested that the plane faced the same issue 23 times since January 2014. The problem occurred due to a cracked solder joint when exposed to extreme temperature (Koren, 2015).   

Impact on AirAsia and the aviation industry

The investigation detects two reasons behind the incidence resulting in plane crash.  The malfunctioning of RTL and subsequent flight crew action resulted in the accident.  It was beyond the capability of the crew to recover. The series of technical failure resulted in the incidence.

The joint investigation by Australian, French, Singaporean and Malaysian authorities has pointed out the weakness in pilot training in dealing with such situations.  It is further recommended by the authorities that the pilots have to be given training regarding the recovery of plane (Pounian and Green, 2015).

From above it is clear that analysis it is clear that the It is very well clear from the scenario that the AirAsia pilots are not given with a proper training.  There were sudden changes in the market leading to change in airliner in an effective way.  This has a prolong impact on the history of aircraft industry. This has a direct influence on the airliner and influenced the factors that were later responsible for the ill-fate of the aircraft. It is further justified that the airliner has a direct implication on the flight and impact the flight had on the long term sustainability (Brajawidagda, Chatfield and Reddick, 2015).  This is important enough while analysing the factors that are associated with the incidence.  This is important in order to avoid such incidences in the aviation industry.  This is important enough for handling the situation in the most effective way. More the less, this incidence is an example of ignorance that required to be dealt with utmost care.   It is clear from that the steep fly angle in attempting to over-fly a huge thundercloud the Air Asia plane, flying from Surabaya to Singapore in the early morning of 28 December 2014, entered the thundercloud.  Jet-engines stopped working without presence of oxygen. Air Asia flight QZ8501, a twin engine Airbus 320, unfortunately flew into such a bubble of CO2  the aircraft made an "unbelievably" steep climb, from 32,000 to 38,000 feet, possibly pushing it beyond the Airbus A320's limit.  Due to the high altitude and steep angle of climb, the plane lost control and lost the balance.  As per the research, The CO2 escaping from an unknown source in the earth’s crust resulted in high winds at this altitude, leading the incidence (Matsuno and Ilmi, 2015).


There were sudden disturbance in the flight recorder (black box) from Flight 8501 can disprove or otherwise validate this theory. The possible reason behind the incidence can only be determined through the recordings. There are multiple theories one out of many possible explanations for the accident. The crucial point to look for is the relatively sudden loss of thrust due to failure of both engines at about 36,000 feet (Gerken, et al 2016).

Analysis of investor behavior and share market

There is a need to conduct an investigation into the matter like - Investigation of possible volcanic activity in the region. This is to avoid any repeat of stalling aircraft, in case more CO2 is released.

One of the main reasons behind the incidence was due to ineffective training.  This is critical for gaining an effective insight. There were questions on the credibility of the airliner that has affected the company. People avoided the use of Aircraft after the incidence took place. There are situation where the critics have slammed the company for using inefficient aircrafts (Elliot, 2015).

There are consistent issues in the airliner that required to be addressed in a well effective way. There is a necessity to adopt a standardised training process. The pilots are not being provided with a proper training that in return has affected the brand. Reports suggested that the Airliner was not following any standardized guidelines that created the confusion. There is a necessity to address the problem in a well and effective way so as to manage the problem with a correct approach. This is important for gaining effectiveness in drawing efficiency in the best possible way (LA Times, 2015).

Another critical issue found in the case study is regarding the use of failed aircraft parts. The incident could have been avoided if the RTL was repaired at an early stage.  There is a constant issue that is been faced by the airliner. Such an incidence created questions in the mind of the travellers and the other stakeholders.  It is important to repair the aircraft in order to avoid such incidences in future.

The best approach is to find out the most appropriate solution to the problem and to effectively implement the plan in order to eliminate the repercussion of such incidence. This is important to eliminate such incidences that might affect the company later. This is necessary for implementing one of the most effective ways to reduce the ill-impact (Auxier, 2015; Bellamy, 2015).

After the incidence, AirAsia share price fell 7.8 percent. This was their biggest one-day drop in more than three years after its Flight QZ8501 went missing.   A lot many travelers lost faith in the airline. This has affected the company profits for a short period.  AirAsia took the whole responsibility and believed in shifting people negative attitude towards the airline (Wise, 2015).

The Kuala Lumpur-traded shares of AirAsia had fallen 7.8 percent as of 0320 GMT, their biggest daily drop since Sept. 22, 2011. The stock had dropped as much as 12.9 percent after the opening, compared with a 0.4 percent decline in Kuala Lumpur’s benchmark index. The fall in investor’s faith has affected the brand and later created a question in their mind. They find it difficult for them to manage the interest of people in the company (Plucinska, 2015).

Recommendations for avoiding such incidents in the future

About 59.5 million AirAsia shares had been traded. That was about 5.2 times the stock’s average full-day volume over the past 30 days. The fall in the price of AirAsia share was considered to be the highest fall after 2011. However, as expected the price of share went up after sometime (REUTERS, AGENCE FRANCE-PRESSE, 2015).

There was a drastic fall in the AirAsia’s share after the incident took place. The entire market was bewildered after a fall in the market.  Investor lost the hope in the company for a short period of time. AirAsia try building customer faith that was lost after the crash. It is very obvious from the research that has a sustainable impact on the investor. A negative image of the brand was coated for the short period of time. Customers’ believed that the company is not trustworthy enough to gain an effective market share.  The fall in investor’s faith has affected the brand and later created a question in their mind. They find it difficult for them to manage the interest of people in the company.  People do lose faith in a brand after such an incidence.

AirAsia replenish the lost faith of people in the company. The CEO of AirAsia came forward and took complete responsibility of the incidence. It was pretty much understood that people require and effective plan in order to gear up people interest (McGee, 2015).

The following data shows the change in the price of AirAsia during the event. It states forward the changes in the fall of the prices.  The AirAsia share price fell 7.8 percent at the starting stage. It started recovering in July 2015. The chart represents the changes in market share of AirAsia after the incidence. This directly showcases the impact of this incidence on the company (Reuters, 2015).

Conclusions

To conclude, the incidence had a long lasting impact in the history of AirAsia. It can be seen that Airliner faced multiple impacts due to the incidence. People lost faith in the airliner that has shaken the faith of people. It is important enough for taking inference of such incidences and developing a proper strategy in order to avoid any such incidence in future. The report provide with multiple theories. It examines the consequences that lead to this event and further affected the share market.

  • The aircraft crash lead to series of consequences generating multiple allegations on the AirAsia
  • The deadliest incident created a deep concern in mind of people regarding the credibility of aircraft
  • The failure was caused due to the RTL and ineffective training to the pilots.
  • The share market was affected due to the incidence for a short period which later started recovering in July 2015.

To company

It is recommended that, AirAsia need to incorporate an effective training process. The problem can only be eliminated if the company is able to manage the situation with a correct approach. This is important for gaining effectiveness in drawing efficiency in the best possible way.

To readers

It is recommended that, for safety sake the customers need to keep faith in the airliner. It is further suggested that the travellers should refrain themselves from using airline that are continuously facing the issues.

References

Abend, L.2015. AirAsia 8501 crash: It's not just pilot error. Online. Available at: https://edition.cnn.com/2015/12/01/opinions/abend-airasia-8501-case/index.html  Accessed on: 25 November 2017

Auxier, E.2015. “PULL DOWN!” — HARSH LESSONS FROM THE AIRASIA 8501 ACCIDENT. Online. Available at: https://airwaysmag.com/best-of-airways/pull-harsh-lessons-airasia-8501-accident-2/ Accessed on: 25 November 2017

Barreveld, D., 2015. Air Crash Investigations-Cracked Solder Joint-The Crash of Indonesia Air Asia Flight 8501. Lulu Press, Inc.

Bellamy, W.2015. AirAsia Flight 8501 Crash Caused by Pilot Error, Rudder Units. Online. Available at: https://www.aviationtoday.com/2015/12/03/airasia-flight-8501-crash-caused-by-pilot-error-rudder-units/ Accessed on: 25 November 2017

Brajawidagda, U., Chatfield, A.T. and Reddick, C.G., 2015, May. The imperative of government transparency in crisis communication: the case of AirAsia QZ8501 crash. In Proceedings of the 16th Annual International Conference on Digital Government Research (pp. 51-60). ACM.

Elliot,M.2015. AirAsia QZ8501 Crash: Final Report Points to Faulty Component, Crew Action. Online. Available at : https://www.flyingmag.com/technique/accidents/airasia-qz8501-crash-final-report-points-faulty-component-crew-action Accessed on: 25 November 2017

Gerken, F., Van der Land, S.F. and van der Meer, T.G., 2016. Crisis in the air: An investigation of AirAsia’s crisis-response effectiveness based on frame alignment. Public Relations Review, 42(5), pp.879-892.

Koren, M.2015. What Brought AirAsia Flight 8501 Down?. Online. Available at:  https://www.theatlantic.com/international/archive/2015/12/airasia-crash-report/418143/ Accessed on: 25 November 2017

LA Times, 2015. Full Coverage Crash of Indonesia AirAsia Flight 8501. Online. Available at : https://www.latimes.com/world/asia/la-fg-airasia-8501-sg-storygallery.html Accessed on: 25 November 2017

Lab,K.2015. AirAsia crash: crew lost control of plane after apparent misunderstanding. Online. Available at: https://www.theguardian.com/world/2015/dec/01/airasia-crew-actions-caused-jet-to-lose-control-say-crash-investigators Accessed on: 25 November 2017

Matsuno, S. and Ilmi, B., 2015. A CAUSAL STUDY ON THE AIRASIA AIRBUS CRASH EVENT.

McGee, O.2015. AirAsia 8501 Crash Report Says Faulty Part, Pilot Error Stalled Airbus A320 Last Year. Online. Available at: https://www.linkedin.com/pulse/airasia-8501-crash-report-says-faulty-part-pilot-a320-oliver Accessed on: 25 November 2017

Otto,B.  And Pasztor, A. 2015. Malfunctions, Pilot Response Blamed in AirAsia Flight 8501 Crash. Online. Available at:  https://www.wsj.com/articles/rudder-system-failure-contributed-to-airasia-flight-8501-crash-1448956384 Accessed on: 25 November 2017

Plucinska, J.2015. Crew Action and a Faulty Part Caused the AirAsia Crash, Indonesian Investigators Say.  Online. Available at : https://time.com/4130480/airasia-crash-indonesia-qz8501-cause/ Accessed on: 25 November 2017

Pounian, S. and Green, J., 2015. AirAsia Flight 8501 Disaster: Applying International Conventions. New York Law Journal.

REUTERS, AGENCE FRANCE-PRESSE,2015. Crash of AirAsia QZ8501: Key findings of investigation report. Online. Available at: https://www.straitstimes.com/asia/se-asia/crash-of-airasia-qz8501-key-findings-of-investigation-report Accessed on: 25 November 2017

Reuters, 2015. AirAsia Flight QZ8501 missing, share price crashes 7.8 pct, biggest drop in 3 years. Online. Available at: https://www.financialexpress.com/industry/airasia-flight-qz8501-missing-share-price-crashes-7-8-pct-biggest-drop-in-3-years/24107/ Accessed on: 25 November 2017

Smith ,L.2015. AirAsia flight QZ8501: Faulty part and 'crew action' caused loss of control that killed 162. Online. Available at: https://www.independent.co.uk/news/world/asia/airasia-crash-crew-action-caused-loss-of-control-of-flight-that-crashed-into-java-sea-killing-162-a6755311.html Accessed on: 25 November 2017

Trask, S. 2016. Thousand of Australians flew on doomed Indonesian AirAsia plane for a year before it crashed in Java Sea and killed 162 people. Online. Available at: https://www.dailymail.co.uk/news/article-3570375/AirAsia-plane-flew-fault-year-crash-Java-Sea.html Accessed on: 25 November 2017

Wise,J.2015. AirAsia Flight 8501 Crash Reveals the Dangers of Putting Machines in the Driver’s Seat. Online. Available at: https://nymag.com/daily/intelligencer/2015/12/airasia-flight-8501-and-the-risks-of-automation.html Accessed on: 25 November 2017

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