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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Excerpts
Background Note
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China Airlines Limited (CAL) was started on December 10, 1959, by some Chinese ex-Air Force officers in Taiwan with an initial fund of NT$ 400,000. The airline operated with just 26 employees and the limited resources of two PBY-5A Catalina flying boats . Initially, the airline undertook mostly military contract work...
CAL's Difficulties
Industry observers felt that the airline's poor reputation could be attributed to its safety record. In addition to this, CAL's recruitment policies, corporate culture, and the strained political relations between mainland China and Taiwan were blamed for its troubles...
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Revival Efforts
CAL adopted various steps over the years to revive its image after several fatal air disasters happened due to pilot errors and poor maintenance procedures. The company diligently pursued a policy of retraining pilots and redesigning its safety procedures...
Improving Cross-Strait Relations
From 1949, when the PRC government came to power, till 1979, relations between mainland China and Taiwan had remained practically frozen. Initiatives to relax the tension began from as early as 1979, but restrictive and non-cooperative political relations had mostly dampened the efforts to improve trade and transport between Taiwan and mainland China...
Excerpts Contd...>>
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