Is Starlux’s Success Rising After Ouster of EVA Airways Chair and Family Conflict?

Is Starlux’s Success Rising After Ouster of EVA Airways Chair and Family Conflict? Caroline Chen, San José State University George Whaley, San José State University Abstract Less than two months after the death of the Evergreen Group founder, his youngest son was removed as Chair of EVA Airways ("EVA"), an Evergreen entity. This led to serious family infighting among his four adult children. The ousted EVA chair formed Starlux Airlines ("Starlux") outside the family-owned Evergreen structure. EVA and Starlux were international airlines based in Taiwan and Starlux became one of EVA's primary competitors. After a few years of infighting, the brother-in-law and newly appointed Evergreen CEO returned the ousted youngest son back into the Evergreen structure as Chair of domestic UNI airways. The case concludes in April 2022 with the newly appointed CEO’s retrospective evaluation of his decisions from a conflict, strategic management, and family business perspective and wondering whether returning the Starlux Chair to Evergreen Group was the best decision. Learning Outcomes 1. Explain the role business, culture, and family firm dynamics play in the success or failure of Taiwanese family firms 2. Evaluate the role of conflict and governance in Taiwanese family firm effectiveness 3. Analyze the internal challenges family members face after other family members start a competing firm Application This descriptive case takes a retrospective view of decisions made by the Evergreen Group and Starlux Chairmen. Students are asked to evaluate the internal and external ramifications of ousting the youngest son from EVA Airlines and assess whether the creation of Starlux Airlines negatively affected EVA and the Evergreen Group. The case is most appropriate for graduate and advanced undergraduate courses in OB/management, family firms, strategic management, and transportation management. Key Words Business, family firms, family dynamics, and airlines Contact Caroline Chen, Accounting & Finance Department, One Washington Square, Lucas College and Graduate School of Business, San José State University, San Jose, CA 95192-0070. Email caroline.chen @sjsu.edu. Phone 415-606-1904.