Problems at China Airlines
|
Case Code: BSTR368 Case Length: 22 Pages Period: 2001-2010 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.300 Organization: China Airlines Ltd. Industry: Aviation Industry Countries: Taiwan Themes: Political environment, Regulatory environment, Operations |
Abstract Case Intro 1 Case Intro 2 Excerpts
"It's [China Airlines Ltd.] a company that has come through years of external shocks and storms, probably shaken but still fighting."
- Derek Sadubin, airline analyst, Center for Asia Pacific Aviation, in December 2009.
"We will do we can to map out new operation strategies in order to increase the company's business and fight for its continued survival."
- Philip Wei, Chairman, China Airlines Limited, in July 2008.
Introduction
In January 2010, Taiwan-based full service airline, China Airlines Ltd. (CAL), announced that it had recorded sales of US$ 358.49 million for the month of December 2009. This was attributed to the increasing cargo sales that offset the losses incurred by the airline in the previous three quarters of financial year (FY) 2009.
Founded in 1959, CAL was the flagship carrier of the Republic of China (ROC). However, it was not completely state-owned. The China Aviation Development Foundation (CADF) had a nearly 54 percent stake in CAL. The airline faced turbulence in its initial years of operations. Its poor safety record in the 1990s severely tarnished its brand image besides lowering passenger traffic. Analysts felt that faulty pilot recruitment policies, lax maintenance systems, high cost operational structure, inefficient corporate culture, etc. had only added to its troubles. Moreover, the strained political relations between mainland China and Taiwan, which prohibited the airline from launching flights to routes in China, made things worse for it.
The airline's mounting problems prompted it to look for ways to restore its image. Its initial efforts were focused on improving its brand image and regaining consumer confidence...
Buy this case study (Please select any one of the payment options)
| Price: Rs.300 |
Price: Rs.300 | PayPal (7 USD) |
