A comparative strategic analysis of China Airlines and EVA Air

Abstract

The two biggest airlines in Taiwan – China Airlines and EVA Air – face a wide range of similar strategic opportunities and challenges, while also pursuing considerably different strategic priorities in some key areas. This paper conducts a comparative strategic analysis of these two airlines by considering the key success factors (KSFs) of fleet mix and size, international partnerships and cooperation, network scope and global reach, and brand awareness and loyalty. Despite geopolitical restrictions, both carriers have developed sizable fleets, networks and partnerships with a global ambition, effectively creating a duopoly that controls half of the passenger market and almost two-thirds of the cargo market in Taiwan. Their brands are recognized outside Taiwan, although EVA Air enjoys slightly better perception of quality by rating companies and passengers. Yet, external realities have greater potential to determine each airline's future strategic trajectory, rather than internal KSFs. Both airlines help to illustrate the global connectivity that the airline industry can foster and promote, and each provides a counterbalance to regional tensions and divisions by doing so.