CHINA AIRLINES CHANGES NAME AND LOGO ON

C O N F I D E N T I A L TAIPEI 000963 SIPDIS SIPDIS DEPT FOR EAP/TC E.O. 12958: DECL: 03/22/2016 TAGS: EAIR PREL CH TW SUBJECT: CHINA AIRLINES CHANGES NAME AND LOGO ON PRESIDENT'S PLANE Classified By: AIT Deputy Director David J. Keegan, Reason 1.4 b ¶1. (U) China Airlines confirmed on March 21 that it would repaint one of its Airbus A340 planes with the name and logo of its fully-owned subsidiary Mandarin Airlines. According to media reports, President Chen Shui-bian will use the A340 on his May trip to Costa Rica to attend the presidential inauguration there. The decision has been portrayed in the press both as an effort to acknowledge Chen's support for "de-sinization" of China Airlines' name, and a possible first step toward a name change. ¶2. (U) China Airlines executives have insisted to the media that the decision to repaint the plane is based entirely on commercial interests. They have described it as part of an effort to raise the profile of Mandarin Airlines and claim that the plane will allow the two airlines to cooperate more closely. One executive told the press that the plane would be used to supplement Mandarin's insufficient capacity on its Taipei-Hong Kong and Kaohsiung-Hong Kong routes. ¶3. (C) Comment: We believe that China Airlines will continue to resist calls to change its name. It has reiterated many of the obstacles to such a change. In addition to the name recognition that the China Airlines brand already enjoys, the airline has also emphasized the risk of losing some international routes. The risk is particularly high for the airline's most profitable route, the Taipei-Hong Kong "golden" route. Under pressure from the PRC, Hong Kong might prevent a newly-named "Taiwan Airlines" from taking over the China Airlines routes. Comments about raising the profile of Mandarin Airlines could signal the start of a new strategy to gradually increase marketing of the subsidiary brand with the possibility of a future merger under the Mandarin Airlines name. However, "deep green" pro-independence supporters are likely to object to the Mandarin Airlines (hua xin hang kong gong si) name, with its strong overtones of Chinese cultural identity, almost as strongly as to China Airlines (zhong hua hang kong gong si). End comment. YOUNG