Print

Mail

wiki links

Analysis: CAL corporate culture a problem: analysts

Three of the passengers on the China Airlines flight that exploded at Naha Airport, Okinawa, earlier this week return to Taipei yesterday. PHOTO: YAO CHIEH-HSIU, TAIPEI TIMES

Just when China Airlines (CAL) seemed to be leaving behind a troubled past, it has encountered potentially damaging turbulence.

The series of explosions that destroyed one of the company's Boeing 737s on Monday were grimly reminiscent of the period from 1991 to 2002, when a string of disasters claimed the lives of 693 passengers and crew.

Though no one died in this week's accident at Okinawa's Naha Airport it raised questions about how far the carrier has progressed.

The persistent doubts seem incongruous for a company headquartered in Taiwan, which over the past four decades has transformed itself from an agricultural backwater to a vital link in the global high-tech chain, with a reputation for precision and digital innovation.

Critics lay the blame on a deadly mixture of intrusive government involvement and a corporate culture that places greater emphasis on hierarchy than teamwork and disdains basic accountability.

From in-flight menus with comical English misspellings to senior executives passing the buck, they say, the carrier needs a thorough overhaul to get its act in order.

"There's a selfishness there," said local aviation expert Earl Wieman. "You live in your own sphere, you don't care about others, you are indifferent to things around you."

However, some international aviation analysts question whether China Airlines is really that bad. They acknowledge its poor safety record in the 1990s, but say that recently it has made impressive improvements in the performance of both pilots and maintenance staff.

"They've really done very well over the last two years," said Singapore-based Nicholas Ionides of Flight International magazine. "They've focused a lot on trying to eliminate human error."

Jan-Arwed Richter, a Hamburg, Germany-based aviation specialist who compiles a detailed aviation safety index said: "I definitely cannot support the argument that CAL relapsed back into [the] bad times of the past."

China Airlines would not comment directly on safety issues. In an e-mail company spokesman Johnson Sun (孫鴻文) said the carrier was attending to the needs of passengers involved in the Naha incident and that the crew had performed bravely in supervising the emergency evacuation on the tarmac.

Retired Air Force officers founded the airline in 1959. It is controlled by a quasi-governmental organization, the China Aviation Development Foundation, which owns a 62 percent stake.

Pressured by the government to privatize and become more accountable, the foundation tried to sell 35 percent of its stake in 2000, but there were no takers.

Analysts have said the carrier's struggle to become safer was a major reason it couldn't find a partner.

Still, it has good access to funding and boasts a fleet of Boeing and Airbus aircraft with an average age of 5.3 years -- far below the industry average.

In recent years, CAL has made a big push to improve its record, hiring a longtime Swissair pilot to leaven the militaristic culture that once dominated the carrier's cockpits. It also brought in a veteran engineering specialist from Hong Kong-based Cathay Pacific to help on maintenance.

The moves appeared to have paid off. China Airlines' last fatal accident was in 2002, when a 747 broke up in midair between Taipei and Hong Kong. Since then, said Kay Yong (戎凱), former Aviation Safety Council chairman, the carrier has made "good, honest efforts at every level."

People First Party Legislator Lee Hung-chun (李鴻鈞) -- a longtime member of the legislature's Transportation Committee -- said a major problem is poor leadership among a senior management better at fawning to political masters than conducting reform.

Lee compared CAL to privately held Eva Airways, which in 16 years of flying has been accident free and has a good reputation.

"If EVA were involved in an accident, then the boss would have to take money out of [shareholders'] pockets," he said. "That's the difference between China Airlines and EVA."

While Lee's comments strike a chord with many local critics, foreign experts say that state control in no way dooms an airline to second-rate status.

Chris Yates of the British-based Jane's Airport Review said China Airlines is now on a par with other Asian carriers, which include perennial passenger favorites like Singapore Airlines, whose majority stakeholder is a Singapore government investment company.

"CAL has certainly had a number of issues in recent years in terms of maintenance and safety of its fleet of aircraft," he said. "But it is not really different from other airlines in region."

China Airlines hopes to contain the damage. It offered a new apology yesterday for the accident.

Ho Han-yeh (何漢業), head of the airline's Japanese branch office, bowed deeply to reporters after visiting Japan's Ministry of Land, Infrastructure and Transportation in Tokyo to apologize for the blaze.

CAL also published an apology in major Japanese newspapers on Wednesday. It also said yesterday that it would offer compensation of NT$80,000 each to business class passengers and NT$65,000 each to passengers in economy.

Meanwhile, CAL said yesterday that chairman Philip Wei (魏幸雄) has verbally offered his resignation to Minister of Transportation and Communications Tsai Duei (蔡堆) over the accident.

Wei is currently traveling with President Chen Shui-bian (陳水扁) in Central America and could not be reached for comment.

Sun said that according to his understanding, Tsai had said he would look into the proposal after Wei returns home.

Additional reporting by Jessie Ho
This story has been viewed 2206 times.