New head of Taiwan's China Airlines vows to overcome hard times

Jul 10, 2008, 13:23 GMT

Taipei - The new chairman of Taiwan's largest carrier China Airlines (CAL) vowed Thursday to help the deficit-ridden company tide over its difficulty in the wake of skyrocketing fuel prices and inflationary pressure.

'We will do we can to map out new operation strategies in order to increase the company's business and fight for its continued survival,' Philip Wei told a news conference after being reappointed CAL chairman.

The airlines suffered a wider-than-expected first quarter loss of 2.97 billion (98 million dollars) as higher fuel prices increased flight costs while a slow economy and growing inflation discouraged tourists from traveling.

Wei, who served as chairman between November 2005 and October 2007, said new strategies would include reducing the number of fuel consumptive long-distance flights and increasing the number of short-distance regional flights.

He did not rule out trimming the company's staff, though he stressed it would only be done when highly necessary.

Wei declined to reveal what he would do about a controversial deal his predecessor Ringo Chao struck in January with France's Airbus for the purchase of 20 A350 jetliners. Chao resigned earlier in July.

'I will have to review the entire deal before I could say anything, as I was just appointed as chairman,' he said.

The airline said in June it was cutting about 150 flights a month and was encouraging its employees to take no pay leave in order to bring down cost.