Problems at China Airlines

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Case Details:

Case Code : BSTR368
Case Length : 22 Pages
Period : 2001-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : China Airlines Ltd.
Industry : Aviation Industry
Countries : Taiwan

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"It's [China Airlines Ltd.] a company that has come through years of external shocks and storms, probably shaken but still fighting."¹

- Derek Sadubin, airline analyst, Center for Asia Pacific Aviation², 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."³

- 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 2009.⁴ 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.

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1] "Dark Business Clouds Ahead for Taiwan's China Airlines," www.chinadaily.com.cn, December 15, 2009.
2] Center for Asia Pacific Aviation is a global agency providing data services and analytical research on the aviation industry.
3] "New Head of Taiwan's China Airlines Vows to Overcome Hard Times," www.earthtimes.org, July 10, 2008.
4] "CAL, EVA See Sales Growth in December 2009," www.cens.com, January 14, 2010.

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