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Corporate Communication and Reputation Audit




Corporate Communication and Reputation Audit


  There are three major airlines in china, Air China; China Southern Airline; China Eastern

Airline.


  China Eastern Airlines Corporation Limited is at the core of China Eastern Air Holding

Company. Its predecessor is China Eastern Airlines, which was founded in June 1988. Listed

on the Hong Kong, New York and Shanghai stock exchanges in 1997, China Eastern Airlines

became the first listed company in Chinese civil aviation industry. China Eastern has

                                                                           established an air

                                                                           transportation

                                                                           network linking all

                                                                           corners of the world

                                                                           with Shanghai.


                                                                             China Eastern Air

                                                                           Holding Company,

                                                                           headquartered in

                                                                           Shanghai, is one of

                                                                           the three largest

                                                                           major air transport

companies in China. The scope of business includes public air transportation, general aviation

and air transport operations and the production and sale of related products, aviation equipment


                                                 1
Corporate Communication and Reputation Audit



and equipment maintenance, passenger air transport, freight services and ground handling,

aircraft leasing, and aviation training and consulting services.


  “In January 2010, China Eastern Air Holding Company possessed assets worth a total of

about RMB 108.5 billion Yuan, owned more than 330 large and medium-sized and 18 general

aviation aircraft,

provided air

service to 151

destinations, and

had over 60,000

employees.”

(2011)


  Currently,

China Eastern

Air Holding

Company is the

parent company

of 21

subsidiaries. Thus, after years of optimizing and integrating resources, forming an air

transportation network offering services that include aviation food services, import and export,

financial futures, mass media advertising, ticket sales and airport investment.


  As one of the three major airlines in China, it operates 50 overseas offices and 11 domestic

                                                 2
Corporate Communication and Reputation Audit



branches. As an official member of Sky Team, China Eastern has extended its flight network

from Shanghai to 983 cities in 178 countries via close cooperation with Sky Team member

airlines. Flying a fleet of more than 400 long haul and short-haul aircrafts with an average age

of less than seven years, China Eastern serves nearly 70 million travelers annually and ranks

among the world’s top 5 airlines in terms of passenger transportation volume. Mission and

value are very important to company. China eastern airline’s mission and value is to be a

“cherished by staff, preferred by customers, satisfactory to shareholders and trusted by society”

company.The most important thing for airline is safety. China eastern airline is no exception.

On one hand, China Eastern Airline always adheres to high standards. And they have not

accidents in past 8 years. When I worked in China Eastern Airline, I could see many slogans

about safety.




  On the otherhand, the reputation is also important for airline. China Eastern Airlines joined

the Sky Team on 21 June 2011, to become the 14th member. The decision could improve the

international profile of China Eastern Airline. And also they care about every passenger’s

requirement. For example, in their system, they have a lot of records about whose need special

service. When the passenger book the ticket, they will ask them whether they need special

service, like wheelchair service, vegetarian food and etc. In 2010, China Eastern Airline

officially opened the micro-blog (twitter). And in 2008 they join the Facebook. That

communication platform helps them to know that passenger’s feeling. They not only focus on


                                                 3
Corporate Communication and Reputation Audit



safety and reputation but also they attach great importance on social responsibility.


  The sustainable development of an enterprise is interdependent with and closely related to

the sustainable development of the society. China eastern airline has always placed great

importance on technical innovation and application and actively explores new technologies,

models and areas in civil aviation to comply with the environmental protection policy and

energy saving and emission reduction requirements of the PRC. Adhering to the idea of dual

focus on both energy conservation and development and mutual coordination between

development and saving, they advocate the idea of low-carbon flying, energy consumption

reduction, conservation of the environment and create a friendly community and establish a

resource conservative and environmentally friendly enterprise. With the target of lowering

resources and energy consumption, China eastern airline advocates the concept of “low-carbon

flying”. They seek to initiate an operational mode of “Consuming and emitting less but

performing more efficiently” to foster organic and efficiency-oriented growth. Jet fuel

consumption accounted for more than 98% of the energy consumption of the China eastern

airline. More than 90% of the Company’s flights undergo refueling and flying in accordance

with the “low-carbon flying” scheme. “Low-carbon flying” is implemented via standardized

and regulated management. Fuel consumption and carbon emission are lowered through

approaches such as system restrictions, procedural enhancement and technological innovation.


  In 2011, Libya and Egypt outbreak civil war, Yunnan and Japan broke in big earthquakes.

China eastern airline participated in the evacuation of Chinese citizens from Egypt and Libya,

as well as the support of emergency earthquake transport in Yunnan and Japan. With the

                                                 4
Corporate Communication and Reputation Audit



company’s quick response, precise arrangements and its courage to overcome hardship and

difficulties, 53 overtime charter flights were successfully sent to evacuate around 12,000

passengers and provide approximately 143 tones of supplies for the purposes of evacuation,

disaster relief and peacekeeping.


  There was an accident in Sep.11, 1998. Chicago tribune reported “SHANGHAI, CHINA —

Seven passengers were injured when a Chinese MD-11 airliner made an emergency landing

Thursday in Shanghai, an airline spokesman said. The passengers aboard the China Eastern

Airlines plane were hurt as they slid down the emergency chutes after the plane landed at

Shanghai’s international airport. The aircraft returned to Shanghai shortly after taking off for

Beijing after the pilot discovered a problem with the front landing gear, the spokesman said.

The MD-11 is the same type of plane that crashed Sept. 2 near Halifax, Nova Scotia, killing all

229 people on board.”(1998). And today that accident be called “ the Chinese miracle on the

Hudson”. And there is a movie named “Crash Landing” was made by Shanghai Film Studio

based on that accident.


  Passenger source is Airline’s future. Every year CAAC (Civil Aviation Administration of

China) has a voting that passages can choose which airline they prefer. In past five years, China

Eastern Airline continues to hold “The Most Popular Airline”. Not only that, China Eastern

Airlines was awarded the “Flight Safety Five-star Award” from CAAC. They also ranked 14th

in the “2011 Top 25 Most Innovative Companies in China” by Fortune Magazine (Chinese).

And China Eastern Airline was ranked 24th among the “Top 50 Most Valuable Chinese Brands”

by a member of WPP, a world-leading brand communication service group.

                                                 5
Corporate Communication and Reputation Audit



  On the other side, some passengers didn’t like China Eastern Airlines. For example, from

Skytrax survey (A United Kingdom-based consultancy, the public face of Inflight Research

Services, which has one of the largest airline and airport review and ranking site. It conducts

research for commercial airlines.) A passenger wrote, “Was a disappointing flight. 30 minutes

delay after we boarded the aircraft. FA’s served few cups of water after the takeoff and weren’t

seen for the next 4 hours. Seat uncomfortably narrow with very little legroom. No individual

IFE and movies were played repeatedly. A cold and tasteless sandwich served before landing.

Overall, good value for the money but I will not fly this airline again.” I found that many

passages complained about legroom. That is problem of all Chinese airlines. I think there are

three reasons. First, there are more than 1500 million passengers travels by plane.But the

airline only has 351 planes. The problem is service shortage. So they have two methods to

solve, buy more planes or double up on seating. Buy planes needs times. Then they have

chosen latter. Second reason is that occidental taller than Asian. But some passengers enjoy

their travel. “I flew return Paris CDG-Shanghai-Fukouka, flights were on time. Aircraft new,

luggage was checked all the way through from Paris-Fukuoka and arrived no problem. Staff

friendly. Paris to Shanghai flight had own entertainment station. There were a wide range of

English films. Meals were good and comparable to other economy airline food. It was Chinese

food beef and noodles, pork and rice, seafood and rice, dim sum. What else would you expect

from a Chinese airline.” I also found that many passengers like China Eastern Airline’s

airplane food. That is good news. Because airplane food is that make people feeling cold and

unpalatable.


                                                 6
Corporate Communication and Reputation Audit



  When I was living in China. There is a lot of information about China Eastern Airline,

specifically in spring festival travel season. Such as Xinhua News Agency:“ During the spring

festival of 2011, China Eastern Airlines domestic flights will increase more than 2100 class,

Hong Kong and Taiwan flights will increase to more than 150 classes, international flights will

increase by more than 900 classes, for a total increase and adjust the flight of more than 3,200

classes. These flights focused on travel and return home hotspot city.”(2011).


    It is commonly believedthat China Eastern Airline is a socially responsible enterprise.

They promise conservation of the environment, and focus on make contributions to the society.

But in some ways, China Eastern Airline also need to improve. Here are some suggestions.

First, they should listen attentively to junior employees, such as flight attendant and

customer-service workers. Passengers often use different methods to complain airline. Junior

employees communicate with passenger every day. They are a reliable source of

information.Then I suggest that company could get collection information from junior

employees to help them planning strategy. Second I will suggest that the making variation

service brand objective. That means to attract more high-end passenger and to meet ordinary

passenger needs. For example, airline can provided comfortable airline seats and special foods

to first class passengers. Third, there is no doubt that keeps good communication and

cooperation with media is very important. This requires company factual and transparent

communications. When the company keeps higher transparent for social media, they will

suffer from heavier pressure. And that pressure help airline improve their service.

    All in all, China Eastern Airline is getting more prosperous year by year. China eastern


                                                 7
Corporate Communication and Reputation Audit



airline raise its service quality and improve its hardware facilities.In the future, China eastern

airline will become a premium airline that is globally competitive.




                                                 8

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Corporate Communication Audit: China Eastern Airlines

  • 1. Corporate Communication and Reputation Audit Corporate Communication and Reputation Audit There are three major airlines in china, Air China; China Southern Airline; China Eastern Airline. China Eastern Airlines Corporation Limited is at the core of China Eastern Air Holding Company. Its predecessor is China Eastern Airlines, which was founded in June 1988. Listed on the Hong Kong, New York and Shanghai stock exchanges in 1997, China Eastern Airlines became the first listed company in Chinese civil aviation industry. China Eastern has established an air transportation network linking all corners of the world with Shanghai. China Eastern Air Holding Company, headquartered in Shanghai, is one of the three largest major air transport companies in China. The scope of business includes public air transportation, general aviation and air transport operations and the production and sale of related products, aviation equipment 1
  • 2. Corporate Communication and Reputation Audit and equipment maintenance, passenger air transport, freight services and ground handling, aircraft leasing, and aviation training and consulting services. “In January 2010, China Eastern Air Holding Company possessed assets worth a total of about RMB 108.5 billion Yuan, owned more than 330 large and medium-sized and 18 general aviation aircraft, provided air service to 151 destinations, and had over 60,000 employees.” (2011) Currently, China Eastern Air Holding Company is the parent company of 21 subsidiaries. Thus, after years of optimizing and integrating resources, forming an air transportation network offering services that include aviation food services, import and export, financial futures, mass media advertising, ticket sales and airport investment. As one of the three major airlines in China, it operates 50 overseas offices and 11 domestic 2
  • 3. Corporate Communication and Reputation Audit branches. As an official member of Sky Team, China Eastern has extended its flight network from Shanghai to 983 cities in 178 countries via close cooperation with Sky Team member airlines. Flying a fleet of more than 400 long haul and short-haul aircrafts with an average age of less than seven years, China Eastern serves nearly 70 million travelers annually and ranks among the world’s top 5 airlines in terms of passenger transportation volume. Mission and value are very important to company. China eastern airline’s mission and value is to be a “cherished by staff, preferred by customers, satisfactory to shareholders and trusted by society” company.The most important thing for airline is safety. China eastern airline is no exception. On one hand, China Eastern Airline always adheres to high standards. And they have not accidents in past 8 years. When I worked in China Eastern Airline, I could see many slogans about safety. On the otherhand, the reputation is also important for airline. China Eastern Airlines joined the Sky Team on 21 June 2011, to become the 14th member. The decision could improve the international profile of China Eastern Airline. And also they care about every passenger’s requirement. For example, in their system, they have a lot of records about whose need special service. When the passenger book the ticket, they will ask them whether they need special service, like wheelchair service, vegetarian food and etc. In 2010, China Eastern Airline officially opened the micro-blog (twitter). And in 2008 they join the Facebook. That communication platform helps them to know that passenger’s feeling. They not only focus on 3
  • 4. Corporate Communication and Reputation Audit safety and reputation but also they attach great importance on social responsibility. The sustainable development of an enterprise is interdependent with and closely related to the sustainable development of the society. China eastern airline has always placed great importance on technical innovation and application and actively explores new technologies, models and areas in civil aviation to comply with the environmental protection policy and energy saving and emission reduction requirements of the PRC. Adhering to the idea of dual focus on both energy conservation and development and mutual coordination between development and saving, they advocate the idea of low-carbon flying, energy consumption reduction, conservation of the environment and create a friendly community and establish a resource conservative and environmentally friendly enterprise. With the target of lowering resources and energy consumption, China eastern airline advocates the concept of “low-carbon flying”. They seek to initiate an operational mode of “Consuming and emitting less but performing more efficiently” to foster organic and efficiency-oriented growth. Jet fuel consumption accounted for more than 98% of the energy consumption of the China eastern airline. More than 90% of the Company’s flights undergo refueling and flying in accordance with the “low-carbon flying” scheme. “Low-carbon flying” is implemented via standardized and regulated management. Fuel consumption and carbon emission are lowered through approaches such as system restrictions, procedural enhancement and technological innovation. In 2011, Libya and Egypt outbreak civil war, Yunnan and Japan broke in big earthquakes. China eastern airline participated in the evacuation of Chinese citizens from Egypt and Libya, as well as the support of emergency earthquake transport in Yunnan and Japan. With the 4
  • 5. Corporate Communication and Reputation Audit company’s quick response, precise arrangements and its courage to overcome hardship and difficulties, 53 overtime charter flights were successfully sent to evacuate around 12,000 passengers and provide approximately 143 tones of supplies for the purposes of evacuation, disaster relief and peacekeeping. There was an accident in Sep.11, 1998. Chicago tribune reported “SHANGHAI, CHINA — Seven passengers were injured when a Chinese MD-11 airliner made an emergency landing Thursday in Shanghai, an airline spokesman said. The passengers aboard the China Eastern Airlines plane were hurt as they slid down the emergency chutes after the plane landed at Shanghai’s international airport. The aircraft returned to Shanghai shortly after taking off for Beijing after the pilot discovered a problem with the front landing gear, the spokesman said. The MD-11 is the same type of plane that crashed Sept. 2 near Halifax, Nova Scotia, killing all 229 people on board.”(1998). And today that accident be called “ the Chinese miracle on the Hudson”. And there is a movie named “Crash Landing” was made by Shanghai Film Studio based on that accident. Passenger source is Airline’s future. Every year CAAC (Civil Aviation Administration of China) has a voting that passages can choose which airline they prefer. In past five years, China Eastern Airline continues to hold “The Most Popular Airline”. Not only that, China Eastern Airlines was awarded the “Flight Safety Five-star Award” from CAAC. They also ranked 14th in the “2011 Top 25 Most Innovative Companies in China” by Fortune Magazine (Chinese). And China Eastern Airline was ranked 24th among the “Top 50 Most Valuable Chinese Brands” by a member of WPP, a world-leading brand communication service group. 5
  • 6. Corporate Communication and Reputation Audit On the other side, some passengers didn’t like China Eastern Airlines. For example, from Skytrax survey (A United Kingdom-based consultancy, the public face of Inflight Research Services, which has one of the largest airline and airport review and ranking site. It conducts research for commercial airlines.) A passenger wrote, “Was a disappointing flight. 30 minutes delay after we boarded the aircraft. FA’s served few cups of water after the takeoff and weren’t seen for the next 4 hours. Seat uncomfortably narrow with very little legroom. No individual IFE and movies were played repeatedly. A cold and tasteless sandwich served before landing. Overall, good value for the money but I will not fly this airline again.” I found that many passages complained about legroom. That is problem of all Chinese airlines. I think there are three reasons. First, there are more than 1500 million passengers travels by plane.But the airline only has 351 planes. The problem is service shortage. So they have two methods to solve, buy more planes or double up on seating. Buy planes needs times. Then they have chosen latter. Second reason is that occidental taller than Asian. But some passengers enjoy their travel. “I flew return Paris CDG-Shanghai-Fukouka, flights were on time. Aircraft new, luggage was checked all the way through from Paris-Fukuoka and arrived no problem. Staff friendly. Paris to Shanghai flight had own entertainment station. There were a wide range of English films. Meals were good and comparable to other economy airline food. It was Chinese food beef and noodles, pork and rice, seafood and rice, dim sum. What else would you expect from a Chinese airline.” I also found that many passengers like China Eastern Airline’s airplane food. That is good news. Because airplane food is that make people feeling cold and unpalatable. 6
  • 7. Corporate Communication and Reputation Audit When I was living in China. There is a lot of information about China Eastern Airline, specifically in spring festival travel season. Such as Xinhua News Agency:“ During the spring festival of 2011, China Eastern Airlines domestic flights will increase more than 2100 class, Hong Kong and Taiwan flights will increase to more than 150 classes, international flights will increase by more than 900 classes, for a total increase and adjust the flight of more than 3,200 classes. These flights focused on travel and return home hotspot city.”(2011). It is commonly believedthat China Eastern Airline is a socially responsible enterprise. They promise conservation of the environment, and focus on make contributions to the society. But in some ways, China Eastern Airline also need to improve. Here are some suggestions. First, they should listen attentively to junior employees, such as flight attendant and customer-service workers. Passengers often use different methods to complain airline. Junior employees communicate with passenger every day. They are a reliable source of information.Then I suggest that company could get collection information from junior employees to help them planning strategy. Second I will suggest that the making variation service brand objective. That means to attract more high-end passenger and to meet ordinary passenger needs. For example, airline can provided comfortable airline seats and special foods to first class passengers. Third, there is no doubt that keeps good communication and cooperation with media is very important. This requires company factual and transparent communications. When the company keeps higher transparent for social media, they will suffer from heavier pressure. And that pressure help airline improve their service. All in all, China Eastern Airline is getting more prosperous year by year. China eastern 7
  • 8. Corporate Communication and Reputation Audit airline raise its service quality and improve its hardware facilities.In the future, China eastern airline will become a premium airline that is globally competitive. 8