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China Airlines Swot Analysis

In: Business and Management

Submitted By patcatfish14
Words 956
Pages 4
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 airline and national flag carrier.
Weaknesses
1. CAL is restricted: PRC government prohibits Taiwanese Airlines from operating in mainland China – both carrying passenger and cargo services – significantly limits the income source. But cross-strait relationship is improving significantly, and CAL has the confidence in competing with the carriers from mainland China.
2. High accident...

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