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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 companys Sales Revenue
increased by 41 % from Dec 2009 in which the company had achieved 98 Million
Dollars. This increase was followed after the companys 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, didnt 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 companys recorded sales. In our paper we stated the
companys Vision, Mission, and Objectives in order to state a plan for developing the
companys civil flights using an edited Business Model. CALs 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 companys
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 paper the new eticketing system which ensures comfort and satisfaction to customers more than
other airlines plus it did open its system for online booking by agencies for tourism
purposes also. Note that CAL did face an increase in the international fuel costs
which is a main source of increasing its flight costs. For that our paper stated that
CAL should always buy new aircrafts with engines of less fuel consumptions and
from there an idea of selling its old fleet come out since old airplanes usually
consume more fuel than new ones.
In addition to its Business model, our paper discusses a main issue which faced CAL
during the past 20 years which is Safety and Security. Many crashes and disasters
were facing CAL Passenger airplanes in which about 20 crashes had occurred from
20 years ago (one accident each year). The reasons of such crashes were mainly
from Airplanes maintenance and pilots mistakes. In the crafting strategy section in
our paper we introduce some important strategies which CAL started implementing
in the last 3 years. Some HR new policies were taking place in recruiting
professional and experienced pilots instead of military ones. Maintenance teams