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

1.Cal grew furiously-by a factor of 80%- in 1972 and 1973. 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-company-history.html

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

C. MARKETING PROBLEM FACING

1. The impact of the trade cycle and the current period of 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 to its passenger fleet ( 18th

largest

in the world), China Airline is also 4th

largest airline in Asia, 5th

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 companies in 60th

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 passenger’s

destination.

4.This will offer food according to the customer’s 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 world’s 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 & Customer’s feedback, for this airline sales

are increasing. And Now this airline 4th

largest airline in Asia.

References :-

Blackwell, R.D., Miniard , P.W. and Engel, J.F. (2001) Consumer Behaviour, 9th

edition. Mason, OH : South Western.