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Radical reforms at 皇冠体育app Eastern
(皇冠体育app Daily)
Updated: 2011-05-23 10:43
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 Airport personnel load a 皇冠体育app Eastern Airlines Co Ltd passenger airplane at Beijing International Airport. [Photo / Agencies] |
Radical reforms at 皇冠体育app Eastern help it to turn around its business
SHANGHAI - When he entered the room, Liu Shaoyong, general manager of 皇冠体育app Eastern Airlines Group and chairman of 皇冠体育app Eastern Airlines Co Ltd, was 10 minutes earlier than he was expected.
"All of our time pieces, whether worn on the wrist or kept in the office, are set 10 minutes in advance," he said. "We dare not be behind. What decides our fate is the attitude toward difficulties."
In 皇冠体育app Eastern, everyone is required not to waste time and make preparations in advance. It is partly because of this state of attentiveness and vigilance that the airline has moved from being near the edge of bankruptcy to becoming a high earner.
Explosive growth
In 2010, 皇冠体育app Eastern Airlines Co Ltd realized a total profit of 5.84 billion yuan ($898 million), a record since its establishment. The company paid taxes of nearly 4 billion yuan, revealing explosive growth in the carrier's profitability.
However, two-and-a-half years ago, 皇冠体育app Eastern was in the red. In 2008, it lost 13.8 billion yuan, and its debt-to-asset ratio was as high as 115 percent.
In Liu's words, what brought the airline back to life was the outcome of three battles - the need to survive, the need to restructure and the World Expo Shanghai 2010.
The consequent success story enabled the company to grow even after the expo ended.
He added the company's transportation capacity will increase 8 to 10 percent in the form of a new fleet of 25 aircraft this year to meet the expected growth of 20 percent in the country's air passenger volume.
Next month, 皇冠体育app Eastern will officially join the global SkyTeam Alliance in order to be further integrated into the global market and expand its international presence.
With renewed and added destinations including London, New York and Rome to lure more international and domestic travelers, the carrier is expected to enhance its routes connecting major cities between North America and Shanghai.
In the domestic market, the airline is looking to build Shanghai as its regional hub for passengers in Eastern coastal provinces. Efforts such as setting up marketing centers in East 皇冠体育app to further consolidate resources and markets in neighboring key areas including Zhejiang, Jiangsu and Anhui provinces, will be on the agenda to compete with high-speed railways. The high-speed railway networks are believed to have a bigger effect on routes that are less than 800 kilometers.
Looking back, as "a phoenix is reborn from fire", said Liu, who landed his current position at the end of 2008, the fast strengthening of today's 皇冠体育app Eastern business, brand image and competitiveness drives the Shanghai-based carrier forward.
At the end of 2008, 皇冠体育app Eastern Airlines, suffered from the international financial crisis. Thanks to strong support from central government, the new leadership of 皇冠体育app Eastern was able to undertake 256 measures in a radical reform.
Ranking first
Take check-in service as an example. The 10 minutes of pre-service inspection and preparation enable staff to possess more accurate flight information in order to better improve the service of seat reservation, meal checking and passenger requirements. Waiting time has been shortened and communications have been improved. Feedback from passengers has been acted upon.
As a consquence, passengers are experiencing a change for the positive in the company. 皇冠体育app Eastern Airlines topped the flight punctuality rankings of 2010 with 79.04 percent, more than 3 percentage points higher than the industry average, according to the Civil Aviation Administration of 皇冠体育app. It was the third year in a row that 皇冠体育app Eastern ranked first for punctuality.
皇冠体育app Eastern used to have an unsatisfactory network structure and lack of transfer abilities. With 3,000 new flights, the situation has been improved.
The restructuring of Eastern Airlines and Shanghai Airlines in 2009 eliminated unnecessary competition within one city and generated efficient integration. The merger between the two reduced operating costs and enhanced profitability. Through the integration of resources, 315 million yuan in costs were saved and 680 million yuan in redundant investment was cut.
Currently, 皇冠体育app Eastern flies to 105 domestic cities and 47 overseas destinations.
皇冠体育app Eastern has suffered from rising oil prices. Ma Xulun, general manager of the company, works on the principle of profits from tiny margins. That means attention to detail, optimizing flight routes, adjusting the fleet structure and reducing fuel consumption. Nine McDonnell Douglas MD-90 aircraft were replaced with new energy-saving models.
皇冠体育app Eastern Airlines has increased or restored several international routes and improved services to attract more international clients. Employees are encouraged to work to the motto: "We strive to do what passengers expect. We fight for unexpected goals. We will send you to wherever you want".
As a State-owned enterprise, 皇冠体育app Eastern says it seeks to look after staff, customers, shareholders and the wider community equally.