CHINA AIRLINES

TOPIC :- To Improve The Customer Satisfaction Levels Of CHINA AIRLINES

China Airlines
Airplane is the most convenient and fastest means of transportation, though it is also the most expensive. Air travel can cover a long journey in less time, saving precious time and energy for you to enjoy the attractions in your destination.
A.

HISTORY OF CHINA AIRLINES

Since 1978, China airlines have witnessed a dramatic improvement every year. By the end of 2003, a total of 1,176 domestic and international airlines were operated in China. According to a landmark pact signed between China and the USA on June 18, 2004, the number of weekly flights between the two countries will increase nearly five times from the current limit of 54 weekly round trip flights to 249 within six years. The hub of China air travel is based in Beijing, with Beijing being the base for international travel.
www.flightcentre.com.au Air China

China Eastern Airlines Based in Beijing and mainly serve international routes as well as a few domestic routes.

B.

Growth in the 1970s and 1980s

grew furiously-by a factor of 80%- in 1972 and 1973.

1.Cal

However, a number of factors caused this growth to fall off sharply in the next two years. Japan and Malaysia cancelled air agreements with CAL following the UN declaration. Losing access to Tokyo left CAL unable to fly to Korea as well. Within a short time, CAL lost access to Saigon due to the fall of South Vietnam. The 1973 oil crisis dealt another severe blow.

2.As

Taiwanese were allowed to visit mainland China in the

late 1980s,CAL was able to fly them partway, to Hong Kong or Tokyo, where they continued on airlines of the PRC (Air China, China Eastern, China Southern, etc.)That year, another 2,57,000 flew to the United states.

3.1990s:

Decade Of Disaster

China Airlines had 7,200 employees as it began the 1990s. CAL was reorganized as a registered corporation in 1991, though it remained 84% government-owned through the China Aviation Development Foundation (CADF), created in 1988 as a kind of quasi- government holding company.
4.The

Asian financial crisis ended a ten year string of

growth in departure traffic and CAL lost US $92.6 million in 1998 on sales of US $1.61 billion. However, it restored Profitability in the first half of 1999.
5.

In early 2000, Northwest Airlines and CAL discussed

areas of cooperation short of an equity investment.

www.fundinguniverse.com/company-histories/china-airlines-companyhistory.html

Principal Competitors :- Cathay Pacific Airways Limited; Eva Air.

C.

MARKETING PROBLEM FACING

The impact of the trade cycle and the current period of

1.

high oil prices on the demand for air travel.

2.The

effect of current trends towards regulatory reform

and the relaxation of Ownership and control rules on the structure of the international airline industry.
3.The

continuing strong impact of Low Cost Carriers, and

the strategic options open to so-called legacy airlines as they respond to the challenges facing them.
4.The

setting up of new Business Class Only airlines.

D.

Largest Carrier In The World Market

Opportunity
At present, China Airlines limited is largest carrier in the world in terms of market capitalisation. The Airline Company actually take over Singapore Airlines in the year 2007. With 214 aircraft th

to its passenger fleet ( 18 th

largest in the world), China Airline th

is also 4

largest airline in Asia, 5

largest In the world from

the domestic cargo traffic handled.

www.china-airlines.com/en/cargonewsen/cargonewsen000031.htm

E.

China Airlines Subsidiary Companies

China Airlines runs in 4 different sections namely Airline Operations, Engineering Services, Airport Terminal Services and others such as Catering Services and other airline-related services. China Airlines frequent flyer program is called China Airlines Companion which will offer travellers frequent flyers while flying with China Airlines flights or its partner airlines. Membership include both Gold and Platinum card members.

F.

Marketing Strategy

This is a case study about how a foreign carrier, China airlines, adapts its strategy competing in the Guam-based airline industry. In addition, the study explains China airlines approach to its customers through partnerships with hotels & tourism th

companies in 60

Taiwan & on Guam; how this business has

been affected by immigration regulations and how it has become a successful carrier on Guam, in spite of falling to reach its initial goal for even being on Guam. China Airlines is a foreign aviation corporation with headquarters in Taipei Taivan, before 2000.
www.oppapers.com

G.

Problems Facing In China Airlines

Flights
1.The

lonely Planet guide of China reported the following

incident: amused passengers watched the pilot (returning from the toilet) locked out of the cockpit by a jammed door. The co-pilot opened the door from within, then both men fiddled with the catch and succeeded in locking

themselves out of the cockpit. As passengers started in disbelief, the pilot and co-pilot attacked the door with a fire-ax, pausing for a moment to draw a curtain between themselves and the audience.
2.In

July 2004, a man with a history of mental illness tried

to hijack a domestic Air China flights to South Korea, saying some friends of his on the plane were carrying bottles of acid. The situation was resolved quickly. The plane made an emergency landing in the Chinese city of Zhengzhou and the man gave himself up.
3.In

December 2004, a passenger punched a stewardess

and a dozen other passengers blocked the doors when the flight attendants in sited that oversize luggage to be checked in rather than jammed on the overhead compartments.
www.newkerala.com/news/world/full news-112653.html .

H.

Improve Customer Satisfaction

1.China

Airlines arrange travel plan, ensuring that flights to

China are perfectly coordinated with land arrangements. 2.This gives the convenience of booking everything under one roof, and the peace of mind that holiday is covered by the Travel Compensation Fund. 3.China airlines will offer minimum stay in between reach passengers
4.This

destination.

will offer food according to the customers demand.

www.chinahospitalitynews.com

I.

Marketing Goals

CAS access to great airline deals and can search for the best possible connections and the goals.

(a)Segment target markets in order to achieve higher levels of customer satisfaction, based on data collected during our MR.

(b)Create cost-effective marketing strategies.

J.

Image & Budget In Market Of The China

Airlines
In terms of infrastructure, China does not have budget terminals at major airports, which is usually vital to the success of low cost airlines satisfy needs of your target audience. Despite being the worlds fastest growing commercial aviation market, China is not a hot bed for low cost carriers. The controllable costs, namely human resources and management costs, only account for about 15% of their total costs. But to foreign airlines, such costs take up 40 to 50% of their total spending.
K.

Aspects Of The Product Life Cycle

There are 5 main aspects:1.Product

Development

2.Introduction 3.Growth 4.Maturity

5.Decline

www.textbooksfree.org

This product life cycle is showing that China Airlines growing this period. In Between the time the sales of this airline was declined. But According to time and due to some improvements & Customers feedback, for this airline sales are increasing. And th

Now this airline 4

largest airline in Asia.

References :-

Blackwell, R.D., Miniard , P.W. and Engel, J.F. (2001) Consumer th

Behaviour, 9

edition. Mason, OH : South Western.