CHINA AIRLINES, LTD. (CAL): 191 Nanking East Road, Section 3, Taipei, 104, Taiwan; Phone 886 (2) 715-2626; Fax 886 (2) 5145689; Http://www. china-airlines. com; Code CI; Year Founded 1959.
With capitalization of US$14,000, retired Nationalist Chinese Air Force personnel privately form this airline at Taipei on December 16, 1959. In January 1960 the 26-person concern inaugurates domestic charter services with 2 Consolidated PBY-5A Catalina flying boats.
Nonscheduled ad hoc flights are also undertaken, in 1961-1962, with ex-military Curtiss C-46s. Destinations visited include Hualien, Kaohsi-ung, and Makung. Taitung becomes the carrier’s first scheduled route in October of the latter year.
In October 1963, scheduled domestic Douglas DC-3 services begin. The employee population in 1964 is 329 and the fleet now comprises 1 DC-3 and 3 former NCAF C-46s. A total of 116,000 passengers are carried on the year and revenues of $526,000 are generated.
Orders are placed in 1965 for 2 Boeing 727-109s as the fleet grows to include 2 Beech 18s, 2 ex-military C-123s, 4 C-46s, and 1 DC-3. A Lockheed L-1049H and 3 DC-4s are acquired from The Flying Tiger Line in 1966, joining 10 C-46s and several other aircraft already on hand. International service (primarily for the convenience of U. S. servicemen) is launched on December 2 over a Taipei-Saigon route. During the second half of the year, 6 C-46s are leased to Air Vietnam, S. A. to help the South Vietnamese carrier provide additional required cargo lift in support of the war.
The B-727-109s are delivered in March 1967 and in April commence new tour flights to Hong Kong, Osaka, and Tokyo. A DC-3 freighter crashes into the sea off South Vietnam on August 21 (two dead).
Another chartered Douglas transport with 3 crew and 13 passengers is lost taking off from Phan Rang, Vietnam, on October 24. At month’s end, CAL takes over the Civil Air Transport (CAT) services from Taipei to Seoul and Manila.
Airline employment in 1968 is 2,387. In January, the carrier succeeds CAT as the principal flag airline of Taiwan. That airline, operated for years as a proprietary company of the U. S. CIA, now turns over to CAL its routes to Bangkok, Kuala Lumpur, and Singapore. An order is now placed for a third B-727-109 and 2 B-707-309Cs, plus 2 Nihon YS-11As. CAT is shut down on May 29.
Enplanements total 509,111 and revenues are $16.3 million.
Service is started to Okinawa on January 1, 1969.
En route from Taitung to Kaohsiung from Hualien on January 2, Flight 227, a DC-3D with 5 crew and 19 passengers crashes into Mount Paku in the southern part of Taiwan near Nan-Pao Shan; the wreckage is found the next day and there are no survivors.
The carrier now joins lATA and inaugurates service to Okinawa. Domestic and international frequencies are increased by 38.5% as the 2 B-727-109s, 2 B-707-309Cs, and 1 of the 2 YS-11As are placed in service through the year. In anticipation of transpacific operations, offices are opened in Los Angeles and San Francisco. Bookings decline to 492,794.
The workforce is increased 43% in 1970 to 2,894. Daily (except Monday) B-707-309C service is inaugurated from Hong Kong to San Francisco via Taipei, Tokyo, and Anchorage, on February 2 and Taipei to Los Angeles via Tokyo and Honolulu on April 26.
One of the two YS-11As with 5 crew and 26 passengers arriving from Hualien, crashes in bad weather on final approach to Taipei on August 12 (4 dead).
Passenger boardings increase 41% to 835,522 while freight traffic skyrockets 352%.
Service is started to Bangkok and Singapore in early 1971 and a B-707-351B is purchased from Northwest Airlines on March 6. Additionally, in April, four-times-per-week flights to Los Angeles from Hong Kong via Taipei and Honolulu are inaugurated. The fleet now includes 2 Stratoliners, 3 B-727-109s, 1 Caravelle III, 3 DC-3s, 1 YS-11A, 4 DC-4s, 3 C-46s, 2 C-123s, and 2 Beech 18s. The 6 C-46s out on loan to Air Vietnam, S. A. are now returned.
When the Taiwan government is evicted from the UN on October 25, China Airlines is no longer eligible for membership in the UN-sponsored ICAO.
En route from Osaka to Hong Kong via Taipei on November 20, the Caravelle III, operating as Flight 824 with 8 crew and 17 passengers, suddenly disappears from ATC radar screens as it is flying at 25,000 ft. near the Pescadores Islands. A small amount of debris washes ashore on Penghu Island, but no other wreckage or any bodies are ever found. Sabotage is suspected as the cause of the disaster, but cannot be proved.
Enplanements for the year drop to 348,300.
Orders are placed in 1972 for 2 Sud-Est SE-210 Caravelles as a third B-707-309C is placed in service. The staff now numbers 3,456. A C-123, chartered to Air America, crashes at Pleiku, South Vietnam, on August 26 (eight dead). The company’s lone active Caravelle is forced to ditch into the Formosa Strait on November 25 (25 dead). At month’s end, permission to land at Kuala Lumpur is withdrawn by the Malaysian government.
Passenger boardings jump 14% to 405,000 and cargo climbs 12%.
The 2 Caravelles join the fleet in 1973. Increasingly, foreign governments, facing a two-China dilemma, elect to withdraw landing rights; in Europe, only the Netherlands permits operations.
Passenger traffic soars 72% to 1.4 million and cargo accelerates by 38%.
The employee population is increased in 1974 to 3,662. The 18-machine fleet is enhanced by the addition of another SE-210, although the last C-46 is now retired. A diplomatic dispute between governments over the two-China policy leads to a suspension of Tokyo service. Taipei to Los Angeles B-707F all-cargo service is inaugurated on June 1.
Under terms of the IATA constitution that requires its members be eligible for ICAO, the carrier must now also depart the trade association, which it does on September 15. President Ben Y. C. Chow becomes board vice chairman and is succeeded, late in the year, by Gen. Cliff Yen-Chun Louie.
Freight traffic soars 75% to 85.9 million FTKs while passenger bookings are up a slight 0.7% to 1,388,000.
General Louie, in January 1975, also assumes the post of chairman. The workforce is reduced by 162 and orders are placed for 3 B-737-281s and 1 B-747F.
A DC-3 is involved in a midair collision with an L-19 over Kom-pong Chom, Cambodia, on March 26; there are no survivors from either aircraft.
The company closes its Saigon office on April 25 and ceases flights to South Vietnam from Taiwan. A B-747-132 formerly flown by Delta Air Lines in the U. S. and leased from its manufacturer, is delivered on May 16 and is placed in service in June on the Taipei-Los Angeles via Honolulu route. Service is resumed to Tokyo on August 10 following a 14-month hiatus.
Although cargo is up 44%, passenger boardings dip 3% to 1,342,000.
The workforce is up 1% in 1976 to 3,363. Chang Lin-teh becomes president on February 1; two days later, an order is placed with Boeing for a single B-747SP-09. CAL is the first airline in Asia to request the long-range Jumbojet.
On February 27, a marketing agreement is signed with Saudia (Saudi Arabian Airlines), covering services between the two company’s home countries.
A second ex-Delta Air Lines B-747-132 leased from Boeing arrives on June 15 as 3 B-737-281s join the fleet to begin service on a 6-point domestic network. The 2 Caravelles, 1 DC-4, and the last C-123 are retired. A route is opened to Jeddah, the carrier’s first destination in the Middle East, on July 1, while flights to Fukuoka via Seoul are launched the same day.
Passenger bookings this year soar 41% to 1,894,000 and freight increases 14%.
When the carrier pulls out of an arrangement to accept a Douglas DC-10-30, it is sent to British Caledonian Airways, Ltd. (BCAL) in February 1977. Following acquisition of the B-747SP-09 on April 6, nonstop transpacific Taipei to Los Angeles and San Francisco frequencies are initiated twice-weekly on May 18. Another B-727-109 is placed in service during the summer.
Enplanements are 2,518,839. Revenues are $220.2 million and the net profit is $9.8 million.
Airline employment is up 8.2% in 1978 to 4,460. In January, weekly, direct Taipei-Seoul service is inaugurated, frequency on the route is increased to thrice-weekly in July. Meanwhile, on March 9, the flight engineer of a B-737-281 en route from Taipei to Hong Kong attempts to take over the scheduled service, with 101 passengers, and divert it to Communist China. The plot is foiled when a security guard shoots the pirate dead.
In April, the Jumbojet leased from Boeing is returned as a new B-747-209B combi is delivered. On July 28, orders are placed four 4 Airbus Industrie A300B4s. A second B-747SP-09 is requested on December 8.
Passenger boardings grow 9.1% to 2,771,000 and freight moves ahead 26.1%. On total revenues of $300 million, a $28-million net profit is recorded.
One B-727-109 and 1 B-737-281 are sold as orders are placed in 1979 for 4 additional Jumbojets; 1 B-747-209B joins the fleet in July, allowing commencement of service to Amsterdam via New York.
A B-707-324C with six crew crashes into the sea off Taipei while on a September 11 training flight; there are no survivors.
Freight drops 13.6% and passenger bookings decline 6.9% to 2,580,452. Profits are $4.7 million (operating) and $10.9 million (net).
The workforce is reduced by 0.07% in 1980 to 4,956.
A B-707-309C with 11 crew and 124 passengers undershoots the runway while landing at Taipei on February 27 and catches fire (2 dead). A third B-747SP-09 is ordered in March.
A B-747SP-09 enters service on April 30 and a B-747-209F in July; the freighter begins all-cargo services to Amsterdam, Dhahran, Dubai, and Luxembourg. Jeddah service is rerouted via Singapore and a new freight route is started to Los Angeles via Fairbanks, Alaska. The third B-747SP-09 is delivered on September 30.
Just after landing at Manila on an October 16 flight from Taipei with 135 aboard, a B-707-309C catches fire and explodes (1 dead).
Passenger boardings drop another 16.3% to 2.16 million and cargo remains level. World economic conditions and the introduction of new domestic service transport options allow revenues of $371.9 million and an increase of 22.5% in expenses to $392.1 million. The resulting losses are $20.1 million (operating) and $19.2 million (net).
A total of 4,956 people work for China Airlines in 1981. Another B-747-209B is added on April 17 as 2 B-707-309Cs and 4 B-727-109s are retired. An order is placed for 6 more Airbus Industrie A300B4s and
3 B-767-209s. Direct Taipei to New York City all-cargo B-747-209F flights commence in January.
Freight traffic soars 60.1% to 304.62 million FTKs. Passenger traffic also rebounds, up 8.89% to 2,352,025 passengers flown.
The employee population in 1982 stands at 4,956. On May 10, the company joins with Cargolux Airlines International, S. A. to provide exchanged space cargo flights between Taipei and Luxembourg via Singapore and Jeddah westbound and Jeddah and Dubai eastbound.
The first of 3 A300B4s delivered during the year arrives on June 22 and is placed into service on regional routes. The last of 4 B-747SP-09s arrives on June 29; it is the last passenger-configured 747SP constructed.
One passenger is killed and 17 are hurt as a B-747-209B with 300 aboard hits air turbulence over the China Sea on August 16. In December, a B-767-209 arrives as 3 B-707-309Cs are sold. China Airlines is now the first airline in the world to operate the advanced Boeing and Airbus wide-bodies simultaneously.
Freight traffic dips 4.3% to 291.41 million FTKs, but passenger boardings increase 20% to 2,822,130.
The workforce is increased 12.2% in 1983 to 5,562 and Gen. Wu Yueh becomes chairman. The first B-767-209 enters service on January
1. The last of 4 A300B4-220s enters service in July.
On August 21, a B-707-309C returns former Filipino senator Benigno S. Aquino Jr. from exile to Manila, where he is assassinated as he steps off the plane; the flight results in the carrier losing its Philippine landing privileges on September 3. Two B-767-209s are placed in service later in the year.
Freight rebounds, up 44% to 420.04 million FTKs, and bookings accelerate 10.3% to 3,113,532. On revenues of $513.5 million, an operating loss of $25.8 million is suffered.
The airline staff is up another 1.6% in 1984 to 5,652. The fleet now includes 7 Jumbojets, 3 B-707-309Cs, 3 B-737-281s, and 2 B-767-209s, as 2 B-747-209Bs and all 4 A300B4-220s are leased out.
Dynasty Class luxury service is introduced on April 1. The New York route is extended on April 12 to Amsterdam, the carrier’s only European passenger destination for several years to come. The B-747-132 is sold to Guinness Peat, also in April.
Cargo grows 13.8% this year to 478.02 million FTKs and passenger boardings jump 5.9% to 3,297,441. While the operating profit is $11.3 million, the net loss is $15.9 million.
The workforce is increased 2.8% in 1985 to 5,908.
En route to the U. S. from Taiwan on February 19 with 272 aboard, a B-747SP-09 that is 300 nm. NW of San Francisco loses power to all
4 engines. The aircraft stalls, rolls—almost inverted—and dives at a 60-degree angle, plunging 32,000 feet (6 miles) in less than 2 minutes. Just 36 seconds before the plane would have crashed into the ocean, the pilot is able to restart the engines and flies 500 miles with a damaged tail before making a safe emergency landing at San Francisco. Only four injuries are reported. The incident is reviewed by Peter Garrison in his “Tumbledown Jumbo: A Trans-Pacific 747 Falls More Than 30,000 Feet to the Brink,” Flying, 113 (October 1986): 22-25.
A B-747-2R7F is acquired on February 26 from Cargolux Airlines International, S. A. for $60 million. En route from Taipei to Kaohsiung on April 26, a B-737-281 with 80 passengers is hijacked by a disgruntled Taiwanese soldier, who wishes to be flown to Hong Kong. The aircraft lands, instead, at its original destination and the perpetrator surrenders to police.
Freighter service is now inaugurated from Taipei to New York (JFK) and Dallas (DFW) and, in terms of cargo carried, CAL now ranks 24th among all world airlines.
Passenger boardings for the year rise 1.9% to 3,360,000 and freight climbs 11.8% to 559 million FTKs. On revenues of $539.4 million, expenses grow 4.1% to $545.9 million, leaving a $6.46-million operating profit; the net loss is down to $8.35 million.
Employment is reduced by 0.6% in 1986 to 5,871.
Following a missed approach to the offshore island of Penghu on a February 16 service from Taipei, a B-737-281 with seven crew and six passengers goes around, but in the process crashes into the sea; there are no survivors.
Defector and pilot Wang Hsi-chuen subdues his two fellow crew members and commandeers his B-747-209F on May 3, flying it to Guangzhou in order to see his 82-year-old father.
The first negotiations between Nationalist and Communist representatives of the two Chinas in 37 years are completed on May 20 and result in the return of the Jumbojet to Taiwan via a formal Hong Kong ceremony 4 days later.
Customer bookings decline 4.2% to 3,217,454, but freight jumps 21.4% to 646.18 million FTKs. Revenues accelerate 14.2% to $703 million and costs are low, allowing an $56.4-million operating profit and a net of $17.7 million.
The payroll grows 2.1% in 1987 to 5,960. Work begins on a $13-million, 55,000-sq.-ft. air cargo building at New York (JFK). In July, cargo space is purchased on Japan Asia Airways Co., Ltd. flights between Tokyo and Taipei.
During the year there is a general relaxation in relations between the two Chinas. The Nationalist government abolishes martial law and relaxes travel restrictions on its citizens. Passenger boardings jump 27.9% to 4,115,000 and cargo rises 15.6% to 777 million FTKs. Revenues increase by 42% to $971.6 million and with expenses in line, the operating line rises to $116.9 million and net gain reaches $70.9 million.
The number of employees is cut 1.5% in 1988 to 5,871. In January, the weekly New York to Amsterdam service ends, as does the carrier’s status as an around-the-world airline.
While en route on a February 22 domestic service, an A300B4 is subjected to an attempted hijacking; before the aircraft can be diverted to mainland China, the lone assailant is overpowered by the crew.
In September, the company is placed under control of a newly formed supervisory body, the China Aviation Development Foundation (CADF). Nominally private, the carrier is controlled by the Kuom-intang, with that party’s Wang Chin-hail as chairman.
Still, the flag carrier of the Republic of China increases enplanements by 15.8% to 4,764,036. Freight grows by a more modest 2.6% to 773.27 million FTKs. Income exceeds expenses and there are profits: $134.48 million (operating) and $65.28 million (net).
The workforce is increased a slight 0.7% in 1989 to 6,805 and the fleet is enhanced by the introduction into service of the first 3 of 6 new A300-600Rs. The company now joins the Asian Abacus computerized reservations system and opens a cargo sales and service office in Europe. The weekly roundtrip cargo service from Taiwan to Luxembourg via Dubai is now doubled.
Beginning in May, Boeing is forced to pay the company $5 million in compensation for delays in the delivery of the airline’s first B-747-400s. The shootings in Beijing’s Tiananmen Square scuttle plans for the inauguration of scheduled services between the two Chinas while a government decree prevents CAL from withdrawing from domestic services on July 1.
Just three minutes after takeoff from Hualian on October 26, Flight 204, a B-737-209 with 7 crew and 47 passengers flies into the side of a 7,000-ft. mountain in rain and darkness after the pilot makes a wrong turn during the initial climb; there are no survivors.
A frequent-flyer program, Dynasty Flyer, is unveiled and passenger boardings move ahead by 3.7% to 4,938,300. Freight is up 11.8% to 858.03 million FTKs. Revenues advance by 18.1% to $1.24 billion, expenses rise 14.6% to $1.05 billion, and operating income advances to $190.83 million. Net gain reaches $115.63 million.
Company employment inches upward in 1990 by 0.5% to 6,841. In February, new service agreements are signed with Cathay Pacific Airways (Pty.), Ltd., Thai Airways International, Ltd. (THAI), and Philippine Airlines. As there are no diplomatic links between Taiwan and the countries of the other three flag carriers, routes are covered by interline agreements. Indeed, route access between any two countries is controlled by the airlines involved.
In an effort to freeze proposed newcomer Evergreen Airways (later Eva Airways) out, the agreement states that only Cathay and CAL will operate technical third and fourth freedoms between the two areas. The arrangement with THAI calls for the expansion of weekly frequencies from 20 to 28, while that with PAL boosts services from daily to 10 per week.
The first of 5 ordered B-747-409s arrives in March, the same month the company announces plans to begin discussions concerning the resumption of airline service to Vietnam. A new code-sharing agreement with Garuda Indonesia begins in October covering passenger flights from Taipei to Denpasar and cargo frequencies from Taipei to Jakarta.
Customer bookings jump 8.2% to 5,345,096 as cargo balloons 25.4% to 1.11 billion FTKs, a figure 18th highest among all world airlines. Revenues ascend 8% to $1.4 billion, 24th best in the world, and expenses allow a 17% net gain of $152 million.
The payroll is increased by 2.3% in 1991 to 7,309 and the fleet now includes 1 owned and 5 leased A300B4-220s, 5 leased A300-600Rs, 3 B-737-209As, 4 B-747-209Bs, 2 B-747-209Fs, 1 owned and 3 chartered B-747SP-09s, and 1 owned and 2 leased B-747-409s. Orders are outstanding for 1 A300-600R, 2 B-747-409s, and 4 McDonnell Douglas MD-11s. Flights begin during the first quarter to Phuket and Bali; in April, service is undertaken to Vancouver, Johannesburg, and Phuket.
A new subsidiary, Mandarin Air, Ltd., is formed with backing from the Koo family’s China Trust group to fly into those areas where its parent’s name is still anathema. It is, for example, allowed to resume flights in August between Taipei and Ho Chi Minh City. In order not to offend the PRC, the Hanoi government, in September, orders the service halted.
Just after takeoff from Taipei on December 29, the No.3 engine of a B-747-2R7F separates from the plane; while falling, it also takes off the No. 4 engine. Control is lost and the freighter carrying 5 crew crashes into the 700-ft. level of mountains near Wanli; there are no survivors.
Passenger boardings climb 2.6% to 5,483,464 and freight is up 3% to
1.12 billion FTKs. Expenses exceed income and there are profits: $171.3 million (operating) and $154.75 million (net).
The workforce grows again in 1992, climbing 8% to 7,894. New services are initiated from Kaohsiung to Manila and flights resume from Kaohsiung to Ho Chi Minh City in August. Indeed, the service is code-shared with Vietnam Airlines and includes a route from Taipei to Hanoi.
The Koo family interest in Mandarin Air, Ltd. is purchased, making that airline a fully owned subsidiary. The first of 4 MD-11s is delivered in December, making the company the fifth Asian carrier to operate the trijet.
Customer bookings advance by 5.6% to 5,790,000, but cargo slides 0.4% to 1.34 billion FTKs. Revenues move ahead by 3.7% to $1.63 billion and produce an operating surplus of $155.66 million. There is also a net profit of $143.61 million.
The employee population stands at 8,104 in 1993, up 2.7%, and a fleet that is increased by the addition of 1 A300B4-622R, 1 B-747-409, and the 3 outstanding MD-11s. In January, Mandarin Air Chairman Liu Teh-min becomes China Air’s chairman with former Civil Aeronautics Administration Director General Yuan Hsing-yuan as president; former China Air President Peter Bien becomes Mandarin Air, Ltd.’s new chairman.
Frankfurt via Mandarin joins the route network, which also now includes flights from Taipei to Amsterdam, Anchorage, Bangkok, Chicago, Dallas, Denpasar, Dubai, Fukuoka, Ho Chi Minh City, Hong Kong, Honolulu, Kaohsiung, Jakarta, Johannesburg, Kuala Lumpur, Los Angeles, Luxembourg, Manila, Nagoya, New York, Okinawa, Phuket, San Francisco, Seoul, Singapore, and Tokyo. Frequencies to San Francisco become daily and 10 per week to Los Angeles. The domestic network is reduced to flights only between Taipei and Kaohsiung.
In late May, representatives from several airlines, including CAL, visit Shanghai to discuss with PRC authorities a proposed opening of direct commercial air links across the Formosa Strait.
For the first time, company stocks are listed on the Taiwan Stock Exchange.
While landing at Hong Kong on a November 4 service from Taipei in heavy weather caused by tropical storm Ira, Flight 605, a B-747-409 with 22 crew and 374 passengers, is unable to stop on the wet runway. The Jumbojet steers to the left to avoid approach lights, skids, and stops just dipping into Hung Hom Bay and partially blocking departures. There are no fatalities, but airport engineers must blow off the vertical tail, destroying the airliner and bringing an insurance claim of $145 million.
Passenger boardings accelerate 7.8% to 6,241,000 and freight rises 33.2% to 1.43 billion FTKs. Revenues inch up 0.7% to $1.64 billion, but costs climb 1.8% to $1.5 billion and lower the operating surplus to $140.17 million. Net gain falls to $115.43 million.
The number of employees is cut by 1.7% in 1994 to 7,969 and it is announced, in January, that the L-1011 fleet will be retired within the next 18 months.
On April 26, on a flight from Taipei, the crew of an A300B4-622R becomes confused in the use of certain instruments while attempting to execute a go-around maneuver on its final approach into the airport at Nagoya, Japan. Under command of Capt. Wang Lo-chi with 14 other crew and 256 passengers, the aircraft stalls at 1,800 ft. and crashes tail-first 300 ft. to the right of the runway, bursting into flames (264 dead). The fatal accident, specifically attributed to crew error and problems with the plane’s automatic pilot, is the second-worst civil aviation disaster in Japanese history after the August 12, 1985 Japan Air Lines Company, Ltd. (2) crash that killed 520.
Assuming responsibility for the disaster, Director General Sun Chao-liang of Taiwan’s Civil Aeronautics Administration resigns on May 6 and is replaced by Mao Chih-kuo. At approximately the same time, the airline’s chairman, Liu Teh-min, and president, Yuan Hsing-yuan, also step down; the president of Far East Air Transport succeeds Liu and Fu Chun-fan, CAL’s chief auditor, becomes president.
Following the murder of 24 Taiwanese tourists on the mainland during the month, the government bans group tour flights to China. The airline is forced to cut back its flights between Taipei and Hong Kong, a major transit center, in response. The move begins to have an economic impact as early as June. During the fall, a contract for wet-lease use of a B-747 freighter is signed with Atlas Air.
In an effort to increase business, a pair of A320-231s are leased from Region Air, Ltd. in December and plans are made to increase frequencies, early in the new year, to Kuala Lumpur, Singapore, Nagoya, and Jakarta.
Customer bookings for the year decline by 5.3% to 5,911,284, but cargo increases 29.2% to 1.84 billion FTKs. Revenues inch up 1.2% to $1.64 billion and expenses jump 11.2% to $1.34 billion. Consequently, the operating profit falls to $306.44 million and net gain plunges to $17.25 million.
Airline employment in 1995 stands at 8,100. During the first week of February, the company accepts 2 Beechjet 400As for use in its new Jet Spectrum advance pilot training program, which it has designed and implemented with the University of North Dakota.
During late April, a temporary accord is signed between Taiwan and Hong Kong that enables the two to circumvent difficulties that have occurred in their bilateral air negotiations and permits Cathay Pacific Airways (Pty.), Ltd. and CAL to continue their exchange of services. With no direct air service between the two Chinas, Hong Kong continues to serve as Taiwan’s PRC gateway.
Service is launched to Zurich and Rome. In May, the carrier joins with Singapore Airlines, Ltd. as each carrier takes a 24.5% stake in a Taipei-based engine compressor repair venture. At the Paris Air Show in June, a letter of intent is signed with Boeing for 4 B-777-200s.
CAL passengers are the beneficiaries in July when seven PRC carriers agree to make service with Taiwan easier for passengers from both Chinas. Beginning in August, Air China International Corporation, China Eastern Airlines Company, Ltd., China National Aviation Corporation (CNAC-2), China Northern Airlines Company, Ltd., China Northwest Airlines Company, Ltd., China Southern Airlines Company, Ltd., and China Southwest Airlines Company, Ltd. will offer double boarding passes to customers traveling via Hong Kong on a CAL connection.
During the last week of October, the company unveils a new corporate identity. In a significant gesture, the flag of Taiwan, which disturbs political leaders in Beijing, is removed from the tails of the company’s jetliners and replaced with a plum blossom, a Chinese symbol of renewal.
A new five-year pact is entered into with Atlas Air on November 13 for utilization of the American carrier’s Jumbojet freighters. Plans are also announced for the addition of 44 additional jetliners to the fleet over the next 7 years.
In December, CAL becomes the Asian launch customer for the Next Generation B-737-800 with a $750-million order to Boeing for 15 machines, for delivery beginning in 1998.
Traffic growth resumes as enplanements accelerate by 9.5% to 6,473,521 and freight jumps 14.9% to 2.1 billion FTKs. Revenues jump 11.6% to $1.73 billion, while costs are up 13.2% to $1.71 billion. Profits of $20 million (operating) and $45 million (net) are posted.
Fifty-two people retire or are laid off from the workforce in 1996. A B-747-412 is leased from Singapore Airlines, Ltd. while an MD-11 is chartered to Mandarin Airlines, Ltd. Aviation authorities in Hong Kong and the Philippines make a list of recommendations to assist the carrier to improve on its safety record. Lufthansa Technik, A. G. is contracted to build up complete operations and maintenance systems that will enhance its aircraft safety.
All-cargo service is launched to Miami and, by June, the Nationalist Chinese carrier is fully-utilizing 4 wet-leased Jumbojet freighters from Atlas Air.
Also in June, the company becomes an alliance partner with Continental Airlines; preparatory to the signing of a full dual-designator pact in the fourth quarter, the two begin jointly marketing frequent flyer programs, shared airport lounges, and one-stop check-in.
In the wake of the ValuJet Airlines and Trans World Airlines (TWA) disasters, CAL, on August 12, bans all dangerous cargo from passenger aircraft.
A code-sharing pact begins with American Airlines in September. The arrangement covers CAL flights from Taipei to Los Angeles and San Francisco and AA domestic routes.
A code-sharing agreement is entered into with Continental Airlines during October covering return flights from Taipei to Houston. On October 27, after South Africa refuses to grant CAL fifth freedom rights to fly passengers and cargo from Singapore to Johannesburg, CAL suspends its already unprofitable twice-weekly services between Taipei and Johannesburg. The B-747SP-09 employed on the service is transferred to the carrier’s Hawaii route.
Customer bookings jump 8.1% to 6,996,471 while cargo climbs 13.3% to 2.388 billion FTKs. A pretax profit of $68.13 million is reported.
The airline’s employee population increases by 8.4% in 1997 to 8,728.
To promote business links between Taiwan and Latin America, a B-747-209F launches weekly roundtrip cargo services on March 15 to Miami (MIA). An A300B4-622R arrives in April under charter from the International Lease Financing Corporation (ILFC).
Plans to make a public stock offering of 16.6% in two tranches are delayed when the government insists on adding four members to the CADF, the organization that owns 71% of the airline.
Following two years of planning and construction, a $74-million joint venture catering operation, China Pacific Catering Services, Ltd., is launched at Taipei during July. Designed to produce 30,000 meals per day, the project is held with Swire Pacific (Pty.), Ltd.
According to an article by Dave English, CAL now operates one of the longest routes in the world, Taipei to New York (JFK). The distance of 7,790 st. mi. is flown via Anchorage in 14 hrs. 30 min. (Airways [July-August 1997]: 21.) Also during August, the government’s Ministry of Transport and Commerce wins control of the CADF, renaming it the China Airlines Foundation (CAF) and reconstituting its board of directors with its own appointees.
In a follow-up to the Russian Federation’s establishment of a representative office in Taipei the previous December, the Ministry of Foreign Affairs announces on September 4 the opening of direct commercial aviation links between Taiwan and Moscow. CAL and Moscow-based Transaero Airlines are authorized to fly the route.
In mid-September, 2 B-747-209Bs are sent to Boeing’s Wichita facility for conversion into freighters. They are due back between November 1998 and June 1999. Code-sharing is started with Continental Airlines on September 20 over a weekly return-route from Taipei to Houston via San Francisco.
In November, a contract is signed with ILFC for the charter of an A300-600R the following February.
A new agreement with American Airlines, signed on November 5, comes into effect on December 1. In addition to linking frequent-flyer programs and simplifying check-in procedures, the two will codeshare on services between Taipei and Dallas, Chicago, Miami, New York, and Washington, D. C. via the CAL gateways at Los Angeles and San Francisco.
Late in the year, officials of the airline and Transport Minister Tsay Jaw-yang become embroiled in a dispute over the interest rate the carrier must pay on a major aircraft lease initiated 19 years earlier.
Passenger boardings accelerate 5.7% to 7,395,755 while 2.76 billion FTKs are also operated. Sales total T$55.85 billion and allow a profit of T$2.34 billion.
At the beginning of 1998, CAL is the 12th largest airline in the world in terms of freight carried.
Arriving at Taipei’s Chiang Kai Shek Airport on February 16 on a flight from Denpasar, the pilot, Capt. Kang Long Lin, of Flight 676, an Airbus Industrie A300-622R with 197 passengers misses his approach in light rain and fog. After turning around to make another approach, the airliner smashes into buildings in a residential area and bursts into flames; there are no survivors and 6 people are killed on the ground. Since 1959, CAL has suffered 12 fatal accidents in which 622 people have died.
At the end of the month, Premier Vincent Siew, in the wake of the nation’s worst-ever airline accident orders the government-owned CAF to reduce its 71% stake in the carrier. Directors of the foundation had enjoyed immunity from lawsuits and were not accountable to public stockholders. Premier Siew believes that CAL must become more accountable before it can get a handle on its terrible safety record.
As a result, a new board of directors is put in place representing the three main factions within Taiwan’s government and President Fu Chun Fan resigns. Under the direction of Chairman Hung-I Chiang and acting
CEO Cheong Choong Kong, the search is begun for an equity partner who can provide outside assistance and what some refer to as a “fast track” recovery from the problems of the past year.
Simultaneously, a fleet revision study is undertaken. It will reveal a corporate desire to emphasize B-777s and B-747-400s in long-haul operations. Should this approach come to pass, the company will remove and sell 5 B-747SP-09s, 5 A300B4-220s, 8 A300B4-622Rs, and 4 MD-11s.
In May, Taiwan aviation authorities order CAL not to purchase or lease any additional aircraft until it has improved its air safety standards. The freeze does not include plane purchases already approved.
A memorandum of understanding is signed with Singapore Airlines, Ltd. on August 1 to form a strategic alliance. SIA will acquire up to 10% equity in the Taipei-based flag carrier within six months, with the possibility of increasing its stake at a later time. At mid-month, it is announced that the equity stake will actually be closer to 30% and that the next CAL president will undoubtedly be appointed from SIA.
It is reported in mid-September that, for the year’s first half, CAL has lost T$1.56 billion ($45 million). This is the airline’s first deficit in 12 years and reflects the impact of the Asian economic crisis.
Capt. Pow Tuk Kwan, a former SIA A340 chief pilot, is seconded to CAL on September 1 to serve as the airline’s vice president-flight operations and training. Meanwhile, Capt. Gui Wee Kee becomes special assistant to the CAL president for flight safety.
While en route from Tokyo (HND) to Honolulu on September 11, Flight 018, a B-747-209B, encounters clear air turbulence at a point 1,230-mi. NW of Honolulu at 37,000-ft.; 11 people aboard are injured.
On October 26, CAL takes delivery of a brand new Next Generation B-737-809 passenger airliner, the first of its type in Asia, and announces that 7 more will be received by the end of the year. The new aircraft will replace the carrier’s 5 existing B-737-409s on short - and medium-haul domestic and regional routes.
During a meeting of the CAF on October 30 the decision is taken to sell more than 50% of its 71% stake in the airline in order to improve its operational structure by finding additional long-term investors. A financial consulting firm will be retained to help the foundation plan its share release. Also, the board, aware of the fact that CAL has been unable to find a president, recommends that the airline consider a promotion from within.
That suggestion is taken and, on November 6, Sandy Liu, a longtime CAL executive, is named acting president.
Negotiations with Singapore Airlines, Ltd., which have continued since August, become difficult in December. CAL and nationalistic Taiwanese government officials balk at the prices suggested as well as the percentage to be sold and management responsibilities to be surrendered. They demand that the foreign stake be capped at just 10%.
Passenger boardings dip 1% to 7.32 million, while freight traffic inches up 1.4% to 2.79 billion FTKs. Revenues are down 7.2% to $1.58 billion, while costs are up 3.4% to $1.7 billion. The operating loss is $118.95 million, while the net loss is $66.76 million.
Airline employment stands at 9,100 at the beginning of 1999. It is announced on January 7, that the company’s top 400 managers will take pay cuts this year totaling $T10 million (US$310,000). Chairman Liu’s income will be reduced by a full 10%, but pay will not be cut for flight crews or technical personnel.
When political interference in the talks becomes too intolerable, they collapse on January 9. Although the SIA captains assigned to assist CAL with safety and training will be allowed to remain, the memorandum of understanding is torn up and there will now be no equity stake in CAL purchased by SIA.
Having elected not to take a stake in CAL, Singapore Airlines, Ltd. will now turn its attention to Ansett Australia (Pty.), Ltd.
Later in the month, in an effort to cut costs, the company cuts out the unprofitable Germany to Switzerland segment of its twice-weekly roundtrip service from Taipei to Zurich via Frankfurt.
In March, the company’s board of directors approves the merger of the two subsidiaries Formosa Airlines, Ltd. and Mandarin Airlines,
Ltd., with the latter the surviving partner. Plans are announced for the transfer of domestic and certain secondary regional routes to Mandarin, with CAL taking over Mandarin’s international flights.
Relatives of the 264 passengers who died in the 1994 Nagoya disaster gather on April 26 at a memorial to mark the fifth anniversary of the accident.
After a safety audit uncovers major continuing deficiencies and Captains Pow Tuk Kwan and Gui Wee Kee report that significant differences exist between their ideas on training and those of CAL instructors, the two-year SIA pilot training contract is cancelled during the last week of May, 16 months ahead of its scheduled conclusion.
A third weekly MD-11 roundtrip from Taipei to Rome via Abu Dhabi is added on June 18. At this point, the China Aviation Development Foundation (CADF) contracts with the U. S. investment bank Salomon Smith Barney to help broker a divestiture.
During July, plans continue by the CADF for a 35% reduction in its 71% stake in the carrier by year’s end. The sell-off is seen as central to a strategy of modernization needed to forge alliances with leading foreign airlines.
While landing at Hong Kong after a service from Bangkok and Taipei on August 22, Flight 642, an MD-11 piloted by Capt. Gerardo Lettich with 14 crew and 300 passengers, is caught in the fierce winds and heavy rains of Typhoon Sam, which is moving through the area. A wingtip catches the runway and the aircraft flips over, killing three passengers and trapping the remainder of the occupants, some for as long as two hours. A total of 211 aboard are injured; many will remain in hospital for several days. The CAL incident is the first major accident at Chek Lap Kok Airport since its opening.
Typhoon Sam continues to play havoc with service at Chek Lap Kok Airport on August 23-24. Following the CAL crash on August 22 that adds to that day’s delays, additional problems are encountered by CAL and Cathay Pacific Airways (Pty.), Ltd., in particular, during the next two days. A total of 77 incoming flights are delayed on August 23, 20 are cancelled, and 14 diverted, with 122 outgoing flights delayed and 16 cancelled. The next day, a total of 175 scheduled flights in and out of Hong Kong are delayed, none are diverted, and 39 are cancelled.
The MD-11 crash sends company stock prices downward, but does not impact on CADF plans for divestiture. In Taipei on August 25, a leading potential bidder, the China Development Industrial Bank, indicates that it must have a full 36% and management control if it is to invest.
On August 31, in light of continuing government safety concerns over CAL, the airline announces that for the month of September only it will suspend one daily roundtrip between Taipei and Hong Kong, as well as two daily roundtrips from Taipei to Los Angles and to San Francisco.
As the result of a quota dispute with Manila, service between Taiwan and the Philippines is suspended on October 2. In November, Mandarin Airlines, Ltd. trades its Vancouver, Sydney, and Brisbane routes to CAL for the parent’s Taipei-Kaohsiung route.
As the year ends, the company has made much progress on its three principal goals: cost control, flight safety, and enhanced passenger service.
Customer bookings jump 7.7% to 7,883,000 while cargo increases 20.9% to 3.38 billion FTKs. Revenues surge 17.3% to $1.93 billion and permit the previous year’s net loss to rebound into an $87.31-million net gain.
Among the world’s top 25 airlines at the beginning of the new millennium, CAL is 12th in FTKs.
The dispute with the Philippines is settled on January 28, 2000, but resumed service between the two countries is again suspended on March 16 for the same reasons as before.
Flights begin from Taipei to Auckland, via Sydney, on March 26.
A weekly B-747-200F cargo route is opened on May 5 from Taipei to Frankfurt and back, via Bangkok and Abu Dhabi. Flight 652, an A300-600 en route from Taipei to Ho Chi Minh City the next day is forced to return to its point of origin when the pilot dies of a heart attack; a safe emergency landing is made by the copilot.
During the first five months, company unit costs fall 7% and productivity rises 20%; sales advance 13% to NT$5.56 billion ($180 million).
As the summer begins, the carrier launches negotiations with China Eastern Airlines Company, Ltd. and China Ocean Shipping (Group) Company, Ltd. concerning a possible minority buy into Shanghai-based
China Cargo Airlines Company, Ltd.
The previously operated twice-weekly MD-11 route from Taipei to Sydney and Auckland flown by Mandarin Airlines, Ltd. is replaced on July 4 by a new CAL thrice-weekly MD-11 service.
Despite the marked improvements, the administration of incoming Taiwanese President Chen Shui-bian sets the stage for wholesale changes at the 71% state-owned CAL in early July. Chairman Chiang Hung-i is replaced by former Far Eastern Air Transport Corporation Vice President Lee Yun-ling. Of the nine members of the China Aviation Development Foundation, which administers CAL, all but Chiang are sacked. With no airline experience, former Kaohsiung city government consultant Christine Tsai-yi Tsung succeeds Sandy Liu as president.
Flight International reports on August 15 that the new board is reconsidering the carrier’s ambitious Airbus and Boeing order announced a year earlier.
At the beginning of September, China Eastern Airlines Company, Ltd. is granted permission to sell CAL a 25% stake in China Cargo Airlines Company, Ltd.
An A300-600 with 256 passengers makes two emergency landings at Nagoya on September 6. En route to Taipei, a warning light comes on in the aircraft’s cockpit and it makes a safe emergency landing where repairs are made and the plane is cleared to takeoff again. Once it departs, the same warning light comes on for a second time, requiring return for a second safe emergency landing.
The yearlong aviation dispute between Taiwan and the Philippines ends on September 26 with an agreement for the restoration of services. On September 29, weekly charters are started from Taipei to New Delhi.
Ten MD-11 roundtrips between Taipei and Manila occur between October 8 and October 27. Meanwhile, on October 13, it is revealed that CAL is one of four international airlines with which Philippine Airlines Chairman Lucio Tan is negotiating a possible sale of his carrier.
Regularly scheduled, daily Next Generation B-737-809 return flights commence the same day between Kaohsiung and Manila, with the schedule advanced to 14 weekly roundtrips between the cities as of October 29. Also on October 29, five-times-a-week Next Generation B-737-809 return service is inaugurated from Taipei to Medan, Indonesia, via Penang, Malaysia.
CHINA AIRWAYS CORPORATION (ZHONGHAU HANG-KONG GONGSI): China (1938-1945). Fifteen days after the establishment of Japan Air Lines Company, Ltd. (1) on December 1, 1938, the Japanese Army in China, seeking a more effective support tool than is currently available to it via Huitong Hangkong Gongsi or Huitong Airways, directs the establishment of this carrier. Publicly, it is created as a joint investment by JAL-1 and three local Chinese governments to provide commercial service. In fact, the carrier is an air transport arm of the military, which provides most of its passengers and all of its income.
The new entrant is outfitted with 20 Manshu Hayabusas and these conduct military support operations exclusively in 1939-1940. With a number of Fokker Model 8 Super Universals and Nakajima AT-2s transferred over from the airline parent, scheduled passenger operations commence in June 1941. A total of 31 destinations in China and Manchuria are visited. In October, the company establishes a special transport group, which is dispatched to French Indochina in preparation for war with the West, which erupts on December 7.
China Airways Corporation reaches its peak on January 1, 1942. At bases at Saigon and north China, the company employs a total of 4,000 and operates 100 aircraft, including 20 new Mitsubishi MC-20 Is. The service network in China and Manchuria covers 12,000 unduplicated km. On July 10, the unit in Indochina is merged, with similar groups from JAL-1 and Manchurian Air Transport Co., into the Army’s Southern Air Transport Command.
Flight operations continue through 1943-1944 and until Japan surrenders on August 15, 1945. Little is known of specific operations or losses.
CHINA AIRWAYS FEDERAL, LTD.: China (1929-1930). Curtiss-Wright/North American Aviation CEO Clement M. Keys dispatches a group of experts, led by Maj. William R. Robertson, to China in February 1929 to form an airline. With shareholding divided between American (60%) and Chinese (40%) interests, China National Aviation Corporation (CNAC-1) is founded at Shanghai on April 12; Minister of Railways Sun Fo, son of political hero Sun Yat-sen, is named president. On April 20, he signs an exclusive 10-year airmail contract with CNAC-1 to operate three routes radiating from Shanghai, as well as for the construction of airports and aircraft and the operation of flying schools.
As the result of opposition from the Chinese military, the new airline is prohibited from the use of most airfields in the nation. Consequently, President Sun Fo requests that Curtiss-Wright fund the use of amphibians, thereby avoiding the cost of constructing private airports. Curtiss-Wright, also controlled by Clement Keys, agrees, although he additionally dispatches Harry G. Smith to manage CNAC-1 under Sun Fo. Five Leoning Air Yachts are crated up and, together with support personnel, depart Seattle for China on July 29.
China Airways Federal is established on August 22 as a wholly owned subsidiary of the Curtiss-Wright subsidiary Intercontinental Aviation and is incorporated under provisions of the China Trade Act of 1922. Ernest R. Price is appointed president and plans are made to initiate service under a contract with CNAC-1. Employing the first reassembled Leoning Air Yacht amphibian, the company undertakes Yangtze River proving flights on October 12-13.
CAF inaugurates scheduled service on October 21 over a route from Shanghai up the Yangtze River to Hankow via Nanking, Anking, and Kiuking. As the other 4 Leonings come on line, daily flights are undertaken.
On November 15, President Price approaches CNAC-1 for an initial payment on the company’s contract. CNAC-1 drags its feet to a point where Sun Fo feels obligated to resign. He is succeeded by Communications Minister Wang Po-chun, who had originally supported military opposition to CNAC-1 creation. Still unpaid, CAF halts services on December 15. Price now seeks the assistance of Chinese Finance Minister
T. V. Soong, who authorizes contract payment.
CAF is able to resume its Yangtze River services on December 17; however, a fatal split occurs between Price and Wang Po-chun, who stop communicating. It is reported at year’s end that, since start-up, a total of 354 passengers have flown over 8,650 miles.
As the result of CNAC financial difficulties and the feud between Price and Communications Minister/CNAC President Wang, the CAF contract with CNAC-1 is cancelled on January 31, 1930. Price publicly protests the government action and the State Council overrules the cancellation order on February 7. The rift between Price and Wang is now too deep to repair and the former is dismissed on March 31.
Max S. Polin arrives in Shanghai in April to negotiate a new contract and the protracted talks drag on. On July 8, Polin and the Chinese government complete their discussions and enter into a new contract. Under its terms, a new China National Aviation Corporation (CNAC-1) is created into which CAF will be merged. CAF ceases operations on July 26, the day the deal is confirmed by the Chinese State Council.
CHINAASIAAIRLINES, LTD.: Taiwan (1987-1994). China Asia Airlines is established at Taipei in 1987 and is controlled by the Kaohsiung Industrial Group. Two former air force generals, Lee Chia-Wen and Yin Heng-Yuan, are appointed joint general managers. Employing 1 Shorts 360-200, flights are inaugurated to Kaohsiung and Makung.
During 1988-1989, the original route is maintained and three more are opened, including a monopoly sector between Kaohsiung and the Kinmen Islands. A second Shorts 360-200 is added in 1991. In 1992, both Dash-200s are replaced by 2 360-300s with an order outstanding for a third.
In 1993, President Gen. Lee and Gen. Yin, the vice president-operations, oversee a workforce of 100. Only 1 Shorts is in service during 1994 and the carrier shuts down at year’s end. In early 1995 the company is purchased by the U-Land Enterprise group and is renamed U-Land Airlines, Ltd.
CHINA CARGO AIRLINES COMPANY, LTD.: 2550 Hingqiao Road, Hongojao International Airport, Shanghai, 200335, China; Phone 86 (21) 6268 2868; Fax 86 (21) 6268 6505; Code CK; Year Founded 1998. Late in the second quarter of 1998, China Eastern Airlines Company, Ltd. joins with the state-owned China Ocean Shipping Company (COSCO) to create a seventy-thirty joint venture, all-cargo subsidiary, which will be known as China Air Cargo (2). The two partners provide $63-million capitalization, with the airline arranging for cargo aircraft and providing management under contract.
The new freight operation, China’s second all-cargo airline, will at first employ B-747Fs leased from Polar Air Cargo or Evergreen International Airlines. Meanwhile, CEA will convert its 11 passenger MD-11s into freighters, while assigning its only MD-11F to the concern. That aircraft currently operates a twice-weekly roundtrip all-cargo service between Shanghai and Chicago.
Revenue services by the new freight subsidiary, now renamed Cargo Airlines, commences from Hongojao International Airport on August 18. Initial operations include domestic and international freight and mail delivery plus the subcontracting of aircraft for the delivery of goods for China Ocean and other non-airline concerns.
It is noted early in 1999 that CEA will send its 5 MD-11s to Boeing for conversion beginning in September. The first MD-11F will be received back in December and, like the others, will be transferred to China Cargo.
As the summer of 2000 begins, China Airlines Company, Ltd. launches negotiations with China Eastern Airlines Company, Ltd. and
China Ocean Shipping (Group) Company, Ltd. concerning a possible minority buy into Shanghai-based China Cargo Airlines Company, Ltd.
At the beginning of September, CEA is granted permission to sell CAL the desired 25% stake in China Cargo. On September 7, an ACMI contract is signed with Atlas Air.
CHINA EASTERN AIRLINES COMPANY, LTD.: 2550 Hingqiao Road, Hongojao International Airport, Shanghai, 200335, China; Phone 86 (21) 268-8899; Fax 86 (21) 268-8668; Http://www. china-on-the-web. com/sh-air/index. htm; Http://www. chinaeastern-air. com; Code MU; Year Founded 1988. China Eastern Airlines is the primary enterprise of China Eastern Air Group, one of the 55 experimental large enterprise groups approved by Chinese government. With its headquarters at Shanghai and additional hubs at Nanchang, Jian, and Hefei, it is a government-owned business separated from the former Shanghai Administration Bureau of CAAC (The General Administration of Civil Aviation of China) on June 25, 1988.
Although the company is involved in developing other industry-related business, CEA is first and foremost committed to air transportation.
The carrier is outfitted with a fleet that includes the first 4 of 10 McDonnell Douglas MD-82s coproduced in China. In addition, a fleet of 4 Xian Y-7 (Chinese license-built Antonov An-24s) is acquired to fly local routes, plus 5 Airbus Industrie A310-304s—the first Airbus product to be delivered in the PRC—4 MD-82s, 6 British Aerospace (HS) Trident 3Bs transferred from CAAC, and 3 British Aerospace BAe 146-100s.
In November-December, the carrier begins eight new routes. Fuzhou-Xian and Yantai-Beijing using the Trident 3Bs; Nanjing-Guangzhou and Nanjing-Hong Kong using the BAe 146s; Jinan-Hangzhou using the Shorts 360; Nanchang-Changzhou using the An-24; Nanchang-Gangzhou using the Xian Y-7; and Shanghai-Xiamen using the A310-200. Passenger boardings total 2,700,000 and 64.36 million FTKs are operated.
In early spring 1989, orders are placed for 3 A300B4-605Rs and 5 MD-11s. Two freight-configured Lockheed L-100-30 Hercules begin to fly fish products to Japan on behalf of Taiyuan-based China General Aviation Corporation (CNAC-2).
When the pro-democracy movement at Beijing is crushed on June 4, the U. S. government delays shipment of aircraft navigation equipment and McDonnell Douglas employees, engaged with China in airliner joint manufacture, are evacuated from Shanghai to Hong Kong until June 26. Still, the CAAC “associate” will add 4 more MD-82s in late summer and early fall.
Just after takeoff from Shanghai on August 15, an An-24RV with 6 crew and 34 passengers loses power and crashes into a river (34 dead).
The first A300B4-605R arrives in November, followed by 2 others in December.
In 1990 routes are served from Shanghai’s Hongojao Airport to Beijing, Fuzhou, Hangzhou, Hefei, Jiman, Nanchang, Tunxi, Wuhan, Xi’an, Xiamen, and Zhengzhou. The three new Airbus aircraft enter service on regional routes to Hong Kong, cities in Japan, and from Shanghai to Beijing. A new $80 fare is instituted for non-Chinese citizens flying between Shanghai and Beijing. In May, the airline receives its two-letter designator code, MU.
In 1991, the fleet includes 4 A300B4-605Rs, 2 A310-304s, 3 Antonov An-24RVs, 3 BAe 146-100s, 14 MD-82s, 1 MD-11 (which arrives in June), 1 MD-11F, 4 Shorts 360s, 5 Xian Y-7s, and 5 Y-7-100s. A number of personnel are sent to Japan Air Lines Company, Ltd. (2) and a Japanese travel college to learn Western cabin service standards.
En route to Los Angeles from Shanghai on April 5, Flight MU53B, an MD-11 with 340 passengers, encounters severe turbulence over the North Pacific and is forced to make an nonscheduled landing at Shemya Air Force Base in the Aleutians; 160 passengers are injured, several seriously.
During the Easter Sunday holiday, eight MD-82 charters are flown to Hong Kong. Employing the MD-11, the carrier takes over Air China International Corporation’s twice-weekly Shanghai to Los Angeles route in August, becoming the only Chinese airline to serve Shanghai roundtrip from the U. S. West Coast. The MD-82s now fly regional routes to Hong Kong, during off-peak hours to Singapore, and other provincial capitals in China.
A total of 3,600 workers are employed at the company’s Shanghai hub in early 1992 and the fleet is altered again. One A300B4-605R is withdrawn along with 2 An-24RV. Added are 3 Fokker 100s and 2 MD-11s, 1 of which is a freighter. Weekly MD-11F roundtrip, all-cargo flights are initiated in January from Beijing to Chicago via Seattle and Tacoma.
In May, an order is placed for 7 (later 10) leased Fokker 100s. International passenger frequencies are launched in June from Shanghai to Madrid via Bahrain and Brussels.
With the assistance of 36 technicians from Swissair, A. G. over a 41-day period, the carrier completes its first MD-82 home-base D-level maintenance check on June 27. Los Angeles service is increased during the summer and capacity to Hong Kong and Japan is augmented. Passenger service to Chicago begins during the third quarter and, during the fourth quarter, nonstop roundtrip service is initiated to Hong Kong from the regional cities of Fuzhou, Hefei, Jinan, Nanchang, Nanjing, Ningbo, and Quingdao.
It is reported several years later that enplanements for this year total eight million.
In 1993, President Wang Lian and Vice President Operations Hu Ding Zhou oversee a workforce of 6,290. Along with Air China International Corporation and China Southern Airlines Company, Ltd.,
China Eastern is one of three former state airline divisions elevated in stature by CAAC, now acting as a regulatory body, to that of an independent “aviation group.” It is given the authority to acquire its own fleet and responsibility for its own finances, including permission to trade shares on the newly allowed Chinese stock exchanges.
As a result, the fleet includes 4 leased A300B4-605Rs, 2 chartered A310-304s, 1 An-24RV, 10 Fokker 100s, 13 MD-82s, 2 owned and 3 leased MD-11s, 1 MD-11F, 4 Shorts 360s, 4 Xian Y-7s, and 3 Y-7-100s.
On April 6, an MD-11, en route from Los Angeles to Shanghai with 256 aboard, suffers an accidental deployment of its wing slats at altitude over the North Pacific. This lapse in control causes the aircraft to pitch so wildly that 2 passengers are killed and 160 are injured before the plane can be successfully diverted to Shemya AFB in the Aleutians.
Evergreen International Airlines complains to the U. S. DOT in September charging that CEA has threatened its Chinese customers with retaliatory actions if they ship with the American carrier; in October, the DOT terminates China Eastern’s all-cargo operating rights to the U. S.
Just after landing at Fuzhou on October 26, Flight 5398, an MD-82 with 9 crew and 71 passengers overruns the runway into flooded ground, where the landing gear is sucked in and the fuselage breaks into 3 pieces (2 dead).
Operations continue apace in 1994. A company MD-82, en route from Seoul to Shanghai with 99 passengers makes an emergency landing on South Korea’s southern Cheju Island on September 22 because of mechanical trouble. With the aid of Korean Airlines/ Korean Air (KAL) maintenance personnel, repairs are made within half an hour and the plane is allowed to proceed. This is the first emergency landing by a Chinese airliner on Korean territory since China and South Korean opened an irregular air service the previous year. Negotiations, under way between the two nations to open regular flight services, continue.
The airline receives acclaim from the National Quality Management Association and is awarded “Best Cabin Service” for the year.
In January 1995, China Eastern begins revenue sharing with Asiana Airlines on services between Shanghai and Seoul. Orders are now placed for 9 McDonnell Douglas MD-90-30s.
It should be noted that China Eastern Air Group is responsible for the professional and specialized training of staff. Its training center, equipped with a cockpit simulator of an MD-82 and certified by the U. S. FAA, allows CEA to train its own pilots, as well as offer instruction to pilots of other airlines. All its MD-11 and MD-11F crews are trained by McDonnell Douglas Aircraft Company Training Center in California. Transport staff training, cabin attendant training, aircraft maintenance training, and management staff training are all provided by China Eastern Air Group.
When the summer schedule begins on March 26, the carrier begins twice-weekly services from Shanghai to Singapore, Qingdao, Jinan, Xian, and Harbin. Previously operated twice weekly, the route from Shanghai to Los Angeles is increased to thrice weekly. Frequencies from Shanghai to Seattle, Chicago, Brussels, Madrid are doubled from weekly to twice weekly, while services are resumed, expanded, or introduced from Shanghai, Dalian, Ningbo, Wenzhou, Yantai, Nanjing, and Yanji.
China Eastern in July is one of seven PRC carriers agreeing to make service with Taiwan easier for passengers from both Chinas; beginning in August, it will offer double boarding passes to customers traveling via Hong Kong on a China Airlines, Ltd. (CAL) connection. Service from a new hub at Qingdao begins on August 1 with serv
World History
