In hard times, heads roll. Sometimes leaders step aside voluntarily, as in the case of Japan Airlines' president Akira Kondo and chairman Susumu Yamaji. But purges at China Airlines (CAL) and Garuda Indonesia are part of major housecleaning efforts.
In a dramatic move to distance China Airlines from its poor safety image, the China Aviation Development Foundation that owns 71 per cent of China Airlines' shares purged 10 of the airline's 11 board members, only retaining chairman Chiang Hung-yi.
Some industry sources view these moves more as gestures, but CAL's new board members appear to bring management expertise to the airline. They include Denny Hu, president of China Development Corporation, C Y Lin, vice-chairman of China Motor Corporation and H T Lin, chairman of International Bills Finance Corporation.
According to some sources, the revamp is designed to convince Taiwan's government to lift the freeze recently imposed on new aircraft orders by CAL.
Indonesia's new government has also decided it is time for new leadership at its faltering flag carrier, Garuda Indonesia.
Following a massive demonstration by airline staff over alleged corruption in Garuda's management, state enterprises minister Tanri Abeng appointed Robby Djohan, former president of the private Bank Niaga, as Garuda's new general director. Djohan replaces Mr Supandi, an ally of former President Suharto.
Djohan has pledged to bring a new commercial discipline to Garuda. He is talking of massive restructuring steps and renegotiation of overseas debts. Djohan told local newspapers: 'We have to be a market-orientated operation.'
Source: Airline Business
