April 15, 2019 / 12:08 PM / 7 days ago

UK firm sees 737 MAX crisis wiping $12 billion off Boeing brand value

FILE PHOTO: The company logo for Boeing is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid TPX IMAGES OF THE DAY

PARIS (Reuters) - Negative publicity over the grounding of Boeing’s 737 MAX jet following two fatal accidents is set to wipe $12 billion (£9 billion) off the value of the planemaker’s brand, Brand Finance said.

The UK-based brand consultancy firm updated the estimate in response to a Reuters query after U.S. President Donald Trump urged Boeing in a tweet to fix and “rebrand” its troubled jetliner.

Brand Finance had previously estimated the damage to the value of Boeing’s reputation at $7.5 billion immediately after the March 10 crash of an Ethiopian Airlines jetliner, the second fatal accident involving the same model in five months.

Boeing has the world’s most valuable aerospace brand, having seen the value of its overall corporate image rise by 61 percent to $32 billion in 2018, according to the same branding firm.

Reporting by Tim Hepher; editing by Richard Lough

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