Will Cathay's reputation post cancellation of flights spill over to Airbus?

Aircraft manufacturing company Airbus and aero-engine manufacturing firm Rolls-Royce have come under spotlight after an engine failure was found on a Cathay Airbus 350 plane during a flight on Monday. 

The failure was identified after Zurich-bound CX383 returned to Hong Kong following take-off early on Monday morning, and had forced the airline to cancel 24 return flights on Tuesday. 

Don't miss: Cathay Pacific apologises for axing 48 flights due to engine issues

Further to flight cancellations announced so far, Cathay expects to cancel 11 additional regional return flights from 5 to 7 September. 

In its latest statement seen by MARKETING-INTERACTIVE, Cathay said 15 aircraft were identified with engine fuel lines that require replacement. Of these, six have already undergone successful repairs and are cleared to operate. 

Cathay said it will resume full operations by Saturday after replacing defective engine fuel lines on its Airbus A350 planes. 

Cathay Pacific’s chief operations and service delivery officer Alex McGowan said: “This was a significant situation for Cathay to manage as the engine component failure was the first of its type to occur on any A350 aircraft anywhere in the world.” 

“Completing thorough inspection and maintenance for all A350 aircraft within such a short timeframe has been challenging. The ability to safely deal with and resolve this issue reflects the can-do spirit of Cathay’s people. I would like to express my sincere thanks to our engineering and frontline teams, along with our partners, for their support and commitment to resolve the situation and minimise flight disruptions,” he added.   

“I would also like to extend my apology to customers whose travel plans were affected by this incident. At Cathay, the safety of our customers and our people guides every decision we make." 

Airbus has declined to comment on the matter when MARKETING-INTERACTIVE reached out. MARKETING-INTERACTIVE has also reached out to Rolls-Royce for a statement.  

The incident has garnered over 9,000 mentions as of 5 September, according to media intelligence firm CARMA. Of these, 44.2% express negative sentiment, a decrease from 54.1% two days ago.   

Some netizens continue to voice safety concerns, many commend Cathay Pacific for taking swift and decisive action to ensure passenger safety, believing the airline is not at fault, said CARMA’s HK GM Charles Cheung. “Additionally, we have also noticed that some discussions among netizens have shifted toward different aircraft models and their engines.” 

Industry reactions 

While industry players MARKETING-INTERACTIVE spoke to agreed that Cathay's statement has provided consumers reassurance, highlighting its commitment to safety and enhancing trust in the airline, the incident could still impact confidence in the aircraft manufacturer of A350 Airbus, and engine supplier Rolls-Royce.  

In fact, the incident involving Cathay's Airbus A350, powered by Rolls-Royce engines, has raised consumer concerns, particularly among those aware of B2B relationships in aviation, said Brian Yeung, co-founder, Brandstorm Communcations. 

“As transparency in aviation grows, passengers are increasingly informed about the aircraft and engines airlines use, which can influence their choices. The engine failure and subsequent flight cancellations may prompt some travellers to seek alternatives, favouring airlines with different aircraft or fewer issues,” he added. 

As consumers become more aware of the complex B2B relationships in the aviation industry, they may start to scrutinise the performance and reputation of aircraft manufacturers such as Airbus when making their travel decisions, according to David Ko, managing director, RFI Asia.  

“For example, travellers are now known to choose airlines and routes based on the aircraft type, following the recent quality incidents with Boeing aircraft,” he added.  

In fact, some of Asia’s largest operators of the Airbus A350, including Singapore Airlines and Japan Airlines, said they would inspect and check their fleet since Cathay’s announcement, but do not foresee any delays or flight cancellations for now. 

Jose Raymond, managing director, SW strategies said Cathay Pacific’s decision undoubtedly impacted passengers’ schedules, but they cannot be faulted for erring on the side of caution. 

“What is unfortunate for Cathay Pacific is that its customers would pin the blame solely on the airline, given their ‘service contract’ with the airline, with the purchase of their tickets through the airline,” he added. 

How can Airbus brush up its reputation? 

On the B2B side of things with regard to Airbus, the incident is likely to have a spillover effect on other airlines given many travellers, especially frequent flyers, are conscious or particular about the aircraft they fly, said Kate Kwan, managing director, Greater China, TEAM LEWIS. 

As such, it’s equally crucial for Airbus to issue official clarifications to dispel potential rumours and maintain transparency, she said. “Setting the record straight on the get-go would be critical in these instances.”  

Meanwhile, Charu Srivastava, co-founder and chief strategy officer, TriOn & Co, said there needs to be assurance and reassurance of robust safety standards. “It will be very powerful for the company CEO or someone similarly senior to be seen to speak to the consumers. Putting a face to the brand and humanising can prove to be crucial to recover from this situation with minimal damage.” 

True enough, this incident underscores the need for close monitoring of key components such as the Rolls-Royce engines.  

That’s why Airbus must strengthen its collaboration with airline partners to swiftly address and resolve technical issues, said Brandstorm’s Yeung. “By enabling real-time data sharing and ensuring rapid responses, Airbus can reinforce its commitment to safety and reliability, reassuring consumers that it is actively safeguarding its aircraft’s performance.” 

While Airbus does have a responsibility in explaining to the affected customers what was the issue which caused the delay, SW Strategies’ Raymond said ultimately the key stakeholder in this episode would be Cathay Pacific, as there is a risk that future business decisions by the airline could be impacted as a result of these series of engine issues which has affected its reputation. 

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