Research of managerial Performance Evaluation for domestic airlines in Taiwan

• Main Authors: Lin, Shinn-Der, 林信得
• Other Authors: 黃崇興
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/32962140679797762537

碩士 === 國立臺灣大學 === 商學研究所 === 91 === Abstract The air transportation in Taiwan had not been well-developed until economic growth in 1970s. In late 80s, air services was tremendously growing and played much more important role due to insufficiency of city-pair rail & road transportation services and “Open Sky Policy” adopted by aviation authority in 1987. In early years of 90s, air services industry reached its heyday and enjoyed brisk business especially after Taiwan government lifted ban on Taiwan family visit to mainland relatives and owing to continuously growing trade volume between two sides of Taiwan Strait. But airlines industry did not take advantageous profit enough when public transportation got improved, macro-economy went slowdown and 2nd freeway construction got started in later 90s. While world economy in recession, “September 11 terrorist attacks” put heavy impact on world airlines industry, with costs (e.g. of war risk insurance) up and revenue down, the airlines were losing more money. Taiwan domestic carriers even had much more difficulties. Moreover, Taiwan public transportation system will be restructured when government completes 2nd freeway construction by 2003 and high-speed rail system starts its operation by the end of 2005. Where will be Taiwan domestic air services industry headed for? By internally and externally environmental analysis, the objective of this research is to analyze the strength, weakness, opportunity and threat of Taiwan domestic airlines industry. Using Porter Five Forces of Industrial Structure Analysis and Aaker Strategic Thrusts, this paper presents an exploratory analysis of the competitive environment. And collection of airlines’ income statement, balance sheet & financial report come up with domestic airlines’ business landscape based on five functions analysis of enterprise, i.e. Profitability Analysis, Stability Analysis, Activity Analysis, Growth Analysis & Productivity Analysis. Longitudinal (1998~2001) & Cross-sectional comparisons of the analyzed data leads to more understand competitive marketing and what these challenges, where these opportunities are. Strategic recommendations proposed to reach sustainable competitive advantage for domestic carriers by this research study are: 1. re-evaluate strategic positioning--- from business operational side a. flight route networking in terms of scale economy b. strengthen market segmentation & consolidation c. interline cooperation d. organization restructuring e. market strategy in case of direct air services 2. maximize utilization of resources to sustain competitive advantage a. purchase same series of aircraft in term of modular maintainability b. share flight safety resources to reduce security costs 3. financial improvement a. financial leveraging b. aviation law & regulations c. airfare model ---elasticity of de-regulated airfare