Asiana Airlines.
July 6 2013 - San Francisco
An aeroplane crashed in San Francisco, United States has faced a technical failure while landing on the airstrip.
HOW DOES THIS EFFECT THE ECONOMY?
Asiana Airlines formerly Seoul Airlines. One of the two major airlines in South Korea. A huge threat to the competitor, Korean Air has faced a very troublesome issue due to the recent plane accident. Not only this has caused it's loyal customers of Asiana Airline to switch to the firms leading competitor, but also would jeopardise its country's gross domestic product (GDP). Gross domestic product(GDP) measures the total market value or all final goods and services produced within the nation's geographical boundary during a given period of time. At 8th July 2013, Asiana Airline's market share dropped by 10%, but regained some ground and closed the trading day with a loss of 5.8%. This shows investors has sold their share to the market which leads to a decrease in investments that causes a decrease in the country's gross domestic product (GDP).How do regain trust from investors? I think what Asiana Airline should do is they should do dirt cheap promotions as cheap as budget airline but with aircrafts which are better than the budget airlines. This encourages consumers to fly with Asiana Airline and in time, consumers regain trust in the firm. Asiana Airline may earn profits which may lead to the entry of new investors.
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