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Growing Stakeholderism in the Airline Industry after the COVID-19 Pandemic

October 26, 2023 @ 12:30 pm - 1:30 pm

 

This article investigates the long-term impact of COVID-19 on the airline industry from a corporate governance perspective. Although the impact of the pandemic was literally unprecedented and the three years of hardship it caused (2020–2022) were particularly acute for the airline industry, the aviation market quickly recovered from a much gloomier forecast. This turnaround occurred at various times in different markets, but the airline industry in most regions has returned to pre-pandemic levels. However, COVID-19 has left a profound impact on the airline industry from a corporate governance perspective. Since almost no airlines could have survived the pandemic on their own, governments bailed out the airline industry, and particularly flag carriers. The rationale for the bailout was not only airlines’ economic contributions but also reinforced nationalism in the airline industry. As a consequence, governments have been more concerned about airline corporate governance while emphasizing social issues. Board members and corporate leaders of airlines that received bailouts from governments are pressured to consider the interests of all stakeholders, and not just shareholders. This article argues that stakeholderism gained more influence in the airline industry after the pandemic.

 

Professor Yoon is Associate Professor at Hankuk University of Foreign Studies School of Law in Seoul, Korea, and has been a Visiting Scholar at UC Law SF since January 2023.  His research focuses on corporate governance and capital markets regulation, and he has published widely on these topics.  Professor Yoon holds an LL.B. in Law from Hankuk University of Foreign Studies; a Master’s in Legal Institutions from the University of Wisconsin, Madison; and LL.M. and J.S.D. degrees from Washington University Law School in St. Louis. Prior to joining the Hankuk University of Foreign Studies, he served as a visiting scholar at Washington University and at Indiana University Maurer School of Law, and as a research fellow with the Korea Corporate Governance Service.  His doctoral dissertation was titled Hedge Fund Regulation in Global Financial Markets: Implications for the Korean Financial Markets.

 

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Details

Date:
October 26, 2023
Time:
12:30 pm - 1:30 pm

Venue

333-404
333 Golden Gate
San Francisco, CA 94102 United States
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