...Introduction In Dec 2010, China airlines Ltd, announced that it had recorded sales revenues of 138.14 Million dollar as for flights carrying people. The company’s Sales Revenue increased by 41 % from Dec 2009 in which the company had achieved 98 Million Dollars. This increase was followed after the company’s announcement in January 2010 that its recorded Sales reached an amount of 358 Million dollars in Dec 2009 including civil and cargo services. These numbers show a huge deficit in the total revenue of flights carrying civilians where the main source of profitability was based and focused on Cargo flights services. Still CAL, China airlines Ltd, didn’t complete its Mission well in terms of increasing profitability and developing its services in order to boost its revenues. Still Civil flights consider covering 38% of the company’s recorded sales. In our paper we stated the company’s Vision, Mission, and Objectives in order to state a plan for developing the company’s civil flights using an edited Business Model. CAL’s problem was in its high costs among competitors who used the LCC (low cost control) in their business in order to create a competitive advantage. In our paper we edited the company’s business model in which we entered some of LCC programs that may attract more customers and compete strongly with competitors. For that CAL developed its systems to be number one leading systems among other airlines especially those in emerging markets such as Mainland china. We stated in our...
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...Chinese Airline Industry The airline industry is very a volatile and slow growing industry. Many times the revenue does not go up in the same rate as the expenses. It is one of the industries that have one of the lowest returns on investment in many parts of the world. It is nearly impossible to enter the industry and extremely difficult to stay in business in many countries, especially in China. Since the majority of the airlines in China are stated-owned, new entrant would have many disadvantages. New entrants have to find suppliers that offers them acceptable price and also to attract travellers to accept their service. In addition, new entrants face competition amount other airlines as well as other substitute products for airlines. Other factors such as economic downturns and government regulations also prevent new entrant from entering the industry. Therefore new entrants are very hard to enter the industry in China. The major business in the airline industry is for passengers. However, there are a small portion of the airline are for shipping purposes. The shipping airlines are usually in a separate base and act as a subsidiary company of a big airline. There are three major airline companies that play the roles of oligopoly in the Chinese airline market. The “Big Three” are called China Eastern Airline, China Southern Airline and Air China Airline. Each of the airlines hold around 30% of the total market share in China and the remaining 10% belongs to all other...
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...[pic] Master of Business Administration AF5215 Financial Accounting for Executive Group Project Date: 07 Dec 2013 |Student ID |Student Name | |12034578G |Yu Ka Kit, Eric | |13022384G |Kevin Lo | |13051317G |Esther Wong | |12037974G |Simon Leung | CONTENT 1. Executive Summary P. 4 2. Introduction P. 5 3. SWOT Analysis 3.1 Strength P. 7 3.2 Weakness P.8 3.3 Opportunity P.10 3.4 Threat P.11 4. Performance Overall 4.1 Turnover Growth P.12 4.2 Profit Before Taxation P.12 4.3 Net Profit P.12 4.4 Cash P.12 4.5 Earning Per Share(EPS) P.13 5. Liquidity Ratios 5.1 Current Ratio P.13 5.2 Quick (Acid Test) Ratio P.13 5.3 Working Capital P.13 6. Profitability Ratios 6.1 Return on Equity (ROE) P.14 6.2 Return on Assets (ROA) P.14 6.3 Operating margin P.14 6.4 Fixed Asset Turnover P.15 7. Financing Ratios 7.1 Debt/Assets ratio P.15 7.2 Debt-to-Equity Ratio ...
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...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. Strengths 1. Fleet age: The average age of their fleet was only 5.6 years, making it one of the youngest and most updated fleet in the world. Their products such as their aircrafts, services and flight networks are more superior to those of Chinese counterparts. 2. Joint Venture: CAL entered a joint venture with Koos Development Corporation to form Mandarin airline in 1991, so that the airline could carry out services to Canada and Australia where CAL itself was directly banned from operating. 3. Branding: By rebranding the Airline with the Taiwanese flag and slogan “blossom everyday” CAL gained new entry to European countries like Amsterdam, Rome, Frankfurt and Vienne. 4. Aviation Market: In 2007 CAL captures one 4th of the aviation market in Taiwan making it the country’s biggest...
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...[pic] ACFI 3217 International Development in Accounting Comparing of the performance of Malaysia Airlines and China Southern Airlines Summary The purpose of this report was discovering and analyzing the performance of Malaysia Airlines and China Southern Airlines; and the benefits and problems in the U.S. adopting of IFRS will be mentioned. First, it evaluates the performance of Malaysia Airlines and China Southern Airlines through five ratios analysis which is profitability, liquidity/solvency, working capital efficiency, long term financial structure and investors’ perspective. Next, on basic of part one analysis, discuss the limitations of financial reporting, meanwhile, companies from different countries which are using different accounting standards should be noticed. Follow on; depend on the situation of financial report, using the SWOT methods to analyze the primary challenges faced by Malaysia Airlines and China Southern Airlines. Finally, discuss the positive and negative of U.S. adopting IFRS. Contents 1. Introduction 1 2. Ratio analysis of the MAS and CZ 1 3. SWTO analysis of the MAS and the CZ 12 3.1. Strengths 12 3.2. Weaknesses 13 3.3. Opportunities 15 3.4. Threats 16 4. The benefits and problems if US adopt IFRS 18 5. Conclusion 26 6. Reference 27 7. Appendices 36 7.1. Appendices 1—Analysis Current Ratio 36 7.2. Appendices 2—Analysis Quick Ratio 36 7.3. Appendices...
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...Executive summary China Airlines Ltd. (CAL) is a Taiwan-based airline. It was founded in 1959. In the early years, it undertook mostly military contract work. It was then declared as the official airline of Taiwan in 1968. Early on, CAL had a lot of problems including poor safety in 1990s which severely discredited the image, faulty pilot recruitment policies, lax maintenance systems, high cost operational structure, inefficient corporate culture, and strained political relations between China and Taiwan which prohibited the airline from launching flights to route in China. On top of that, the economic crisis caused the company huge loss. However, CAL put remarkable efforts to revive their business to profitibility. This report provides analysis, evaluation, and recommendation for China Airlines. Strategic Difficulties • Outrageous crashes record (safety issue): there were 12 fatal crashes in its history that heavily discredited the image and revenue of CAL. All due to low standard of recruiting and training captain, pilots and crews, wrong policies and low standard of maintenance at the time (cost-cutting in maintenance), and desperate responses to save its image. • Constrain on China and Taiwan relationship: Taiwan’s airlines (flights and cargo) were required to land in Hong Kong or Macau before entering the mainland China, which wasted time and added extra unnecessary costs. Moreover, tourists travelling from China were not allowed to travel to Taiwan individually...
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...American Airlines Foreign Direct Investment Plan University of Phoenix June 8, 2009 American Airlines Foreign Direct Investment Plan American Airlines has decided to expand operations into the greater China market. A thorough analysis of the marketplace has taken place and the final remaining detail that needs to be defined is the airlines strategy for the foreign direct investment (FDI) that will be required to service successfully the Chinese travel market. While much of the expansion into the China market will leverage local resources, direct investment in the Chinese infrastructure will be needed. As such, the FDI analysis will focus on the expansion of airport facilities, airport and city ticket offices and a reservation center. The structure of the FDI analysis will include an executive summary of American Airlines overall China strategy, modes of entry and associated risks, funding of the initiative and contingency plan should the airline need to change strategies mid implementation. Executive Summary American Airlines and American Eagle (firms owned by AMR) serve some 250 destinations in approximately 40 countries including destinations in Europe, the Americas, and Asia-Pacific. The combined aircraft of both carriers comprise of 900 airplanes with 625 of those being jets. On any given day the airline transports 270,000 passengers on approximately 3,300 flights to over 170 destinations worldwide. Additionally, American Airlines is part of...
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...ethics is very critical when focusing on leadership (Hackman, & Johnson, 2013). In this paper, I will use three criteria to analyze the ethics leadership about two crises and determine which one is more ethical. Two Crises of Leadership China Airlines Flight 120 China Airlines Flight 120 was a regularly scheduled flight from Taiwan Taoyuan International Airport to Naha Airport in Japan. On August 20, 2007, the Boeing 737-800 aircraft caught fire and exploded after landing at Naha Airport in Japan. There were 157 passengers aboard, including 2 infants. Of the number, 110 passengers were from Taiwan, 23 were from Japan, and 24 were from other countries (Wikipedia, 2014). A statement from the airline confirmed that all passengers and crew members were evacuated safely (Cooper, 2007). 2009–2011 Toyota vehicle recalls Three separate but related recalls of automobiles by Toyota occurred at 2009 to 2011 (Wikipedia, 2014). After, the reports showed that several vehicles experienced unintended acceleration. As of January 28, 2010, Toyota had announced recalls of approximately 5.2 million vehicles, and an additional 2.3 million vehicles. The next day, Toyota widened the recall to include 1.8 million vehicles in Europe and 75,000 in China. By then, the worldwide total number of cars recalled by Toyota stood at 9 million (Kubota, 2012). Three Criteria about Ethical Leadership The Challenge of Information Management Leaders participate in decision-making groups, receive financial...
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...» SAFEST • SUBSIDIARY OF C.S.A » BUT CSA MAKES NO DIRECT INVESTMENT CAPITAL & GOVERNANCE SUPPLY & DELIVERY PRODUCTION PRICING & PROMOTION • ROUTES AND INTERCONNECTIONS • SOME REGIONAL (ASIAN) ROUTES •HIGHER PRICING POLICY IMPACT ON REVENUES / ASK (YIELD) •MARKETING •CUSTOMER SATISFACTION & RETENTION 5|3 XIAMEN AIR DIFFERENTIATION SKIPPING THE SWOT FOR THE MOMENT SINCE COMPETITORS LIKE TRAINS, OTHER AIRLINES MACRO FACTORS SUCH AS FLOOR PRICING POLICY, STAKEHOLDERS OF GOVERNMENT ETC INCREASING COMPETITION BETWEEN PROVINCES & CITIES AND INCREASING NEED FOR REVENUE MANAGEMENT & WITHIN LIMITED SPHERE OF ACTION DUE TO CAPITAL CONSTRAINTS AND RUNNING AS A SUBSIDIARY OF A POTENTIAL COMPETITOR ARE SELF-EVIDENT XIAMEN AIR DIFFERENTIATION QUESTION: (A) WOULD DREAMLINER HELP IN REGAINING THE REVENUE & PROFIT POSITION? (B) HOW WOULD SKYTEAM COMPLEMENT & AID THIS? KEY IS THE SUCCESS OF XIAMEN AS A HUB, FOR A HUB & SPOKE SYSTEM THAT CAN COMPETE WITH OTHER HUBS IN CHINA XIAMEN AIR DIFFERENTIATION XIAMEN AIR...
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...Yinzhi Miao Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State LL.M. Long Paper Harvard Law School Supervised by Prof. Reinier Kraakman and Mark Roe April 2012 Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State Yinzhi Miao Abstract: There are both considerate horizontal and vertical governance problems in the Chinese state-owned-enterprises (SOEs). Due to their privileged positions in the political economy, traditional institutions of corporate governance are far from perfect. Thus the value of oversea listing as a governance mechanism is highlighted, and that could be better revealed by a deeper analysis of the benefit-and-cost balance by the government which controls the SOEs. However, effective as it is, oversea listing could not be a marvelous antidote to all governance ills. Further, as the two major governance disasters of oversea listed SOEs shows, if the government lacks a proper self-positioning, nontrivial negative implications will be brought to SOEs governance via oversea listing. The ultimate function of corporate governance in SOEs thus relies heavily on public governance. Key words: state-owned-enterprises, oversea listing, corporate China governance, 2 Table of contents I. Introduction ....................................................................................................................4 II. The Governance problems of Chinese SOEs and the limitations of...
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...Evaluating Competitiveness Using Fuzzy Analytic Hierarchy Process - A Case Study of Chinese Airlines Abstract With the development of a national market economy, the Chinese aviation industry is now confronted with international competition. Therefore, it is necessary to research the competitive status of Chinese national aviation, as well as advice on how to enhance the competitiveness of the Chinese aviation industry. The main objective of this paper is to propose FAHP as an effective solution for resolving the uncertainty and imprecision in the evaluation of airlines’ competitiveness. In this paper, we review the research of industrial international aviation competitiveness at both home and abroad, discuss a theoretical framework for the study of aviation competitiveness, establish an index system with 5 first-order indicators and 17 second-order indicators, set up a Chinese aviation competitiveness model based on simple fuzzy numbers from the Fuzzy Analytic Hierarchy Process, and evaluate the competitiveness of 5 major Chinese airlines. The results show that this model and these indicators are scientific and practical, with a wide range of application prospects for the purpose of improving and increasing Chinese airline competitiveness in the international market. The effective approach presented in this paper is especially applicable when subjective judgments on performance ratings and attribute weights are not accessible or reliable, or when suitable decision makers...
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...SWOT analysis for Air China The airline industry has undergone significant restructuring in recent years.Airlines, formerly rivals in a highly regulated industry, have become opportunisticseekers of co-operation. In today's world, mega-carriers and small airlines areworking together rather than competing with one another. Forms of co-operation include sub-contracting, code sharing, franchising and theformation of global marketing networks. Such alliances allow firms to focus on their respective core competencies, while drawing the benefits of scale economies. In essence,co-operation among rivals has led to increased competitiveness. This has accelerated thetrend of joint marketing, and the airline industry has become characterized by the desireto belong to a global network. The tendency has been to strive for a global presence. The case of Air China Air China was founded on the 1st of July 1955. Its headquarters is based in Beijing. Itengages in international and domestic passenger and cargo flight services. To unify itsfacility image and simplify its repairs and maintenances, its fleet of 118 aircraftexclusively consists of Boeing models. It has established hub-spoke style passenger andcargo transport network. The hub of this network is Beijing International Airport.The company is operating 339 routes, which consists of 53 international and 286domestic, operating more than 1,000 scheduled flights on weekly basis, serving 29 citiesin 19 countries. About 66 per cent of its...
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...SWOT analysis for Air China The airline industry has undergone significant restructuring in recent years.Airlines, formerly rivals in a highly regulated industry, have become opportunisticseekers of co-operation. In today's world, mega-carriers and small airlines areworking together rather than competing with one another. Forms of co-operation include sub-contracting, code sharing, franchising and theformation of global marketing networks. Such alliances allow firms to focus on their respective core competencies, while drawing the benefits of scale economies. In essence,co-operation among rivals has led to increased competitiveness. This has accelerated thetrend of joint marketing, and the airline industry has become characterized by the desireto belong to a global network. The tendency has been to strive for a global presence. The case of Air China Air China was founded on the 1st of July 1955. Its headquarters is based in Beijing. Itengages in international and domestic passenger and cargo flight services. To unify itsfacility image and simplify its repairs and maintenances, its fleet of 118 aircraftexclusively consists of Boeing models. It has established hub-spoke style passenger andcargo transport network. The hub of this network is Beijing International Airport.The company is operating 339 routes, which consists of 53 international and 286domestic, operating more than 1,000 scheduled flights on weekly basis, serving 29 citiesin 19 countries. About 66 per cent of...
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...XIAMEN AIRLINES: PAY FOR PERFORMANCE Company Overview: Xiamen Airlines was established in July, 1984 jointly by CAAC and the Fujian Provincial government. By December 2013, its shareholders were china Southern Airlines Co. Ltd., Xiamen C&D corp. Ltd. And Jizhong energy Resources Co. Ltd with 51%, 34% and 15% of shares respectively. They are the only Chinese Airlines featuring all Boeing fleet, operating 102 fleet with 16,650 seats on 218 domestic routes and 26 International and regional routes. They are known for its excellent customer service and extraordinary safety performance. In 2014, Xiamen Airlines employees 11,000+ employees including 1000+ pilots. Airlines Industry in China: Strengths | Weakness | * Highest population in the world * Permitting the private sector to enter into the industry * Increase in Passenger traffic * Steady increase in the need for transportation within the country * Regulation for pilots to avoid them from switching the companies | * Huge investment * Very less players in the market | Opportunities | Threats | * Industry is growing 10 times faster than USA * The revenue passenger kilometer increased by 12% | * Hugh speed rail system development * Pilot shortage | Challenges faced by Xiamen Airlines: * High attrition rate of the pilots and switching to other airlines * Unequal pay system i.e. more pay for the foreign pilots and relatively lesser pay for the domestic pilots * Lack...
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....................... 3 CORE MATURE MARKETS .................................................................................................................................................... 4 EMERGING MARKETS ........................................................................................................................................................... 4 CONSUMER DEMAND............................................................................................................................................................ 5 COMPETITION ....................................................................................................................................................................... 5 TARGET COUNTRY - CHINA ................................................................................................................................ 5 RISK FACTORS...
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