Support for the MAX brand falters as Boeing aircraft nears green light

SEATTLE / CHICAGO (Reuters) – Boeing Co PROHIBITION is set to get approval for its 737 MAX on the ground this week, but cracks are appearing in the branding as the most traumatic chapter in the aircraft maker’s history overshadows the original billing of superlative aircraft performance.

When it returns to the skies next month as expected after a nearly two-year security review, the “MAX” name will still be officially in place. However, some airlines have begun to soften references to the aircraft after two fatal accidents that killed 346 people.

Industry sources familiar with the brand say the name is likely to be phased out over time as a strategy develops among airlines to downplay the “MAX” label in favor of the formal names assigned to each variant. , such as “737-7” or “737-8”.

“You will see that the name MAX is used less frequently,” one of the sources told Reuters. Another person involved in the marketing discussions predicted that the MAX name would gradually fade over the next few years.

Boeing declined to comment.

The wavering support for the brand could be a setback for the company, which had announced a name and model number in an unusual way, and urged airlines to “think MAX.” It also shows a possible sore point with airlines, which had invested promotional dollars in a name that is now seen as tarnished.

Last year, Brand Finance estimated that the problems of the MAX had wiped out $ 7.5 billion from the value of Boeing’s corporate image.

In anticipation of this week’s approval, American Airlines Group Inc AAL.O plans to relaunch MAX commercial flights on December 29 from Miami to New York City. But while passengers will see the MAX name in reservation systems, it will not appear on security cards visible in seat pockets, people familiar with the change told Reuters.

“We changed the security cards of the Boeing 737 to simplify the cards and ensure that the correct card is placed on each aircraft,” said a US spokeswoman, confirming the move. “This approach is consistent with other types of fleets where we do not have different security cards for subfotas,” he added.

American is committed to being transparent with customers about the MAX and will offer other travel options if they don’t want to fly the plane.

Originally conceived in 2011, the word “MAX” was just a marketing title for the latest 737. Removing it from the cards has no impact on security. But the cabin is where airlines define their brand, plan each visual cue, and virtually nothing happens by chance, say airline marketing experts.

Doubts about the name arose in August when a press release about a MAX order from Enter Air of Poland referred to it as the “737-8”.

Last week, Air Canada ACT used the same designation in a press release on quarterly earnings, with “MAX” appearing in footnotes only, a change from the previous year’s format. An Air Canada spokeswoman said the airline uses the term “interchangeably.”

While keeping the name, Boeing allows airlines to decide how they want to market the MAX. Even before the accidents, Ireland’s Ryanair Holdings PLC RYA.I he had decided to refer to his specially designed version as “Gamechanger” instead of “MAX”.

“If Boeing customers want it removed, it will be removed,” said a third source, adding that some “key customers are saying the MAX name is tainted.”

HIGH VISIBILITY

The pressures on the once unstoppable brand for Boeing’s fastest-selling jet highlight a delicate problem for airlines.

In the short term, they must restore public confidence in the aircraft, requiring transparency about which aircraft is being used, something that US operators have committed to enforcing.

But the name has also raised a lot of skepticism.

In April 2019, US President Donald Trump tweeted: “I WOULD FIX the Boeing 737 MAX, add some extra features, and REBRAND the plane with a new name.”

In January 2020, the president of Air Lease Corp AL.N, an influential buyer, said the “damaged” brand should be scrapped.

Renaming a tarnished brand has been a well-proven strategy for companies looking to overcome crises.

“Some people will remember it and it will cause them pain in the short term, but it has broken the connection,” said Paul Argenti, a professor at Dartmouth’s Tuck School of Business. “Someone who gets on the plane in four years will not remember ‘MAX’.”

JET Nicknames

The MAX’s branding issues are even more complicated for Boeing, as naming civil aircraft is the exception rather than the rule.

While official nicknames are common for military aircraft like the F / A-18 “Super Hornet”, Boeing only gave its first nickname to a civilian plane with its 787 “Dreamliner” about a decade ago.

But for the MAX, it needed to strike a stronger blow in an all-out battle for market share against its European rival Airbus SE. AIR.PA.

In 2011, Boeing dropped plans for an entirely new aircraft and rolled out a faster upgrade to the 737 MAX after being caught off guard by a large sale from Airbus to American Airlines, the company that now reopens MAX flights.

Boeing’s marketers came up with a name that “ticked many boxes: peak performance, maximum capacity, maximum range,” said a person familiar with the discussions.

A Boeing promotional video using camera angles to give the impression of a vertical takeoff, labeled “Flown by Boeing Test Pilots. Don’t try ”- they underlined the superlative statements.

“It was short and effective,” said the person familiar with the discussions over the name. “The problem,” he added, “is that in a negative context it has also been very effective.”