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China Airlines Swot Analysis

956 words - 4 pages

China Airlines Ltd. SWOT Analysis
SWOT Analysis examines the company’s, key business structure and operations, history and products and provides summary an analysis of its key revenue lines and strategy. China Airlines (CAL) is principally engaged in the provision of airline services. The company offers two major services, passenger transport and cargo transport. The company operates flights to 89 cities in 29 countries. It is headquartered in Taipei, Taiwan and employs more than 10.000 people. This report provides all the important information on China Airlines Ltd. and contains a study of the major internal and external factors affecting China Airlines Ltd. in the form of a SWOT analysis. ...view middle of the document...

44, worldwide average is 1.5. This had severe impact on the passengers’ confidence in travelling with the airline – resulting in downturn in the revenues from carrying passengers.
3. Relatively high costs: Operating expenses are relatively high – greater than total cost, and grew significantly in the year 2008 compared to the year 2007.
4. High level of shares owned by government: Staff acted more like government employees than their counterparts in other companies; this may have had the effect on safety records as corporate democracy is hard to enforce.
Opportunities
1. Downsize: The Company has a poor record of safety due to cutbacks; by “trimming the fat” the company could make advancements at creating better quality and minimise operating expenses in order to maximise profits by focusing more on key areas such as repair & maintenance, freight logistics and aerospace technology.
2. Taiwan improves relationships: With the easing of cross-strait relations CAL’s operations in cargo and passenger revenue could improve tremendously, CAL could also use more direct routes to Europe lowering flight times.
3. Quality & Image: If CAL was to improve its recruitment and safety standard then the Airline would be on track to recovering its image in the public eye, this would show the company is taking measures to ensure consumer safety as well as raising the standards of operations by the Airline.
4. Growing operations: With the implementation of new regulations and standards CAL has the opportunity to grow their network even further and capture more than just one 4th of the market share.
Threats
1. Economic Downturn / Increased Oil Prices: Economic downturn has weighed heavily on the number of passengers per month down to 150 flights, and also decreasing their cargo runs by 50 per month. One barrel of oil in 2009 was $90, with this being a continued trend could prove to choke any profits CAL hopes to make, with the...

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