China Eastern Airlines (B): Building an International Airline

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Case

Reference no. 397-057-1

Subject category: Strategy and General Management

Authors: D Clyde-Smith (China Europe International Business School (CEIBS)); Peter Williamson (China Europe International Business School (CEIBS)); Peter Williamson (INSEAD)

Published by: China Europe International Business School

Published in: 1997

Length: 19 pages

Data source: Field research

Topics: History of the international aviation industry; The competitive environment in the 1990s; Relative size of different markets; Building an international airline; Competition for passengers in the international market; International airline alliances; Links between foreign airlines and China; Potential lessons from a successful entrant

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Abstract

This is the second of a two-case series (397-056-1 and 397-057-1). This case focuses on the issues facing China Eastern Airlines when building an international airline. With the aim of having 50% of all revenues coming from international routes, a challenging task had been set by CEA''s Chairman. The question facing management was what would be necessary to ensure China Eastern Airlines could win market share in the international aviation industry, and how to maintain a strong and profitable position in one of the most competitive businesses in the world. The case provides aggregate data on the international airline industry.

Location:

Shanghai, China

Industry:

Civil aviation

Other setting(s):

1 year