China Airlines

Founded In: - 7 September 1959

Commenced Operations in 16th December 1959
China Airlines is the state-owned national carrier of the Republic of China (Taiwan), and one
of its two major airlines along with EVA Air. It is headquartered in Taipei Taoyuan
International Airport and operates over 1400 flights weekly to 102 cities across Asia,
Europe, North America, and Oceania. The company owns some subsidiaries, which aid in its
operations in other countries and regions within China.

Facts Of the Case

China Airlines is the largest airline in Taiwan. It is also the flag bearer of the Republic of
China. Our case deals with the problems China Airlines. Much of its trouble was attributed
to its poor safety record in the 1990s that severely tarnished its brand image besides
lowering passenger traffic. In addition to this, faulty pilot recruitment policies, lenient flight
crew training process, lax maintenance systems, high-cost operational structure, inefficient
corporate culture, and the cost-cutting policies of the management which sacrificed safety
standards added to its woes.

Problems
The problems that the company faces may not be squared to one party. In the internal analysis, several
operations or activities may significantly contribute to the downfall of the company.
1. One of the main forces is the faulty pilot recruitment policies. The company has not established proper
methods of recruiting employees. This is a main challenge since it leads to hiring of incompetent pilots
who may lead to crashes at work through their inadequate expertise. Such pilots will always lead to
extra cost, which may result from crashes caused by their inadequate experience in the field.
2. Indulgent flight training method is the other internal force that would have reared the problem. The
company has not identified efficient methods to hire staff. This has led to leakage of uncompetitive
flight attendants who cannot identify problems in the aircraft that are likely to cause massive loss.
3. Slipshod maintenance systems also cause massive challenges in the operations of the China Airlines.
This yield high cost of operations increasing problems involved in the operations of China Airlines.
Inefficient corporate culture, which is characterized of cost minimization policies by the management,
which has sacrificed safety standards for the company increasing on the woes that the company
experiences in its operations