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Sustainable Supply Chain Management
STARLUX Airlines, as an air transportation service provider, operates across Taiwan, Northeast Asia, Southeast Asia, and North America. Its core business includes passenger and cargo transportation, while offering diversified services such as in-flight sales and retail. The air transportation industry relies on the complementary collaboration of upstream, midstream, and downstream sectors to establish a seamless service flow and meet customer needs.
Upstream, Midstream, and Downstream Industries Overview
Upstream
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Aircraft manufacturers
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Aircraft engine manufacturers
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Aircraft leasing companies
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Ground service equipment manufacturing/modification
Midstream
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Airline operations
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Petroleum industry
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Aircraft maintenance companies
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Airline catering companies
Downstream
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General public
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Travel agencies
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Freight forwarders
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Courier services
STARLUX Airlines’ supply chain includes upstream suppliers such as aircraft and engine manufacturers, aircraft leasing companies, and ground service equipment providers.
To achieve carbon reduction goals, aircraft are acquired through direct purchase or leasing from international aircraft lessors, forming the primary source of the company’s airline capacity. Additionally, the airline employs the latest ground service equipment at airports to advance vehicle electrification, including electric tow tractors, electric shuttle buses, and solar-powered escalator service vehicles that charge vehicle batteries.
Downstream, STARLUX Airlines serves the general public, travel agencies, freight forwarders, and courier services. The company strives to enhance the online ticket booking experience while closely collaborating with travel agencies to assist with related services such as visa processing and hotel arrangements. Moreover, STARLUX actively partners with courier companies and expands collaboration with airline alliances to extend its business reach.
Supplier Selection and Management
Supplier selection is the initial stage of STARLUX Airlines’ procurement process. Through rigorous procedures and standards, we select suppliers capable of meeting the company’s requirements. STARLUX evaluates suppliers’ production capacity, quality control systems, delivery capability, price competitiveness, and commitment to safety and sustainability, ensuring partnerships with high-quality, reliable, and sustainable suppliers.
Development Timing
Suppliers may be developed when requested by a purchasing unit in collaboration with the procurement authority, or during engagement assessments if they offer better alternatives than existing suppliers or are feasible as secondary suppliers.
Selection Principles
Supplied products or services must meet the purchasing unit’s and procurement authority’s requirements for safety, quality, price, and sustainability, and comply with all necessary regulatory certifications. Suppliers must ensure that their operations do not compromise flight safety or in-flight service quality.
Selection involves on-site inspections, verification of professional and technical qualifications, evaluation of technical, management, and fulfillment capabilities, as well as annual supplier assessments. These procedures ensure corporate safety and provide a reference for future procurement decisions.
Registration and Maintenance
Suppliers are registered, updated, or deactivated using the BPM (Business Process Management) electronic approval system and relevant paper documentation. The responsible procurement unit ensures data accuracy and authenticity, while managing the validity of supplier licenses and certifications.
Integrity and Ethical Compliance
STARLUX communicates expectations and quality standards with suppliers to jointly maintain brand value. During contract execution, suppliers must not offer, solicit, or receive improper benefits or engage in unethical or illegal activities. Violations may result in immediate contract termination and legal accountability.
Information Security and Intellectual Property
Suppliers handling intellectual property must comply with non-infringement guarantees, confidentiality requirements, and IP ownership agreements. They must ensure the confidentiality, integrity, and availability of personal data, maintaining compliance with internal and external security threats. Suppliers are required to follow STARLUX’s information security policies, including audits, data classification, access control, system use, and communication security. These rules apply to all subsidiaries, business partners, contractors, and temporary staff.
Supplier Evaluation
STARLUX Airlines implements a comprehensive evaluation system to regularly assess supplier performance, including quality control, on-time delivery, pricing, and sustainability practices. This ensures high business efficiency and supports sustainability goals.
| Result | Score (Actual scores set by each unit) |
Action |
|---|---|---|
| Excellent | 4.5-5 | Priority consideration as supplier |
| Qualified | 3.9-4.4 | Normal engagement; may be considered as secondary supplier |
| Monitor | 3-3.8 | Increased oversight; if consecutive for two years, classified as “Non-Qualified” |
| Non-Qualified | ≤2.9 | Deactivate supplier and replace; not eligible for new procurement for two years |
Supplier Evaluation Results
As STARLUX Airlines continues to expand its operations, the number of cooperating suppliers has grown year by year, leading to a corresponding increase in the scale of supplier evaluations. To ensure product quality and delivery efficiency, each business unit establishes evaluation criteria based on its operational characteristics and conducts a comprehensive evaluation at least once a year. In 2023, a total of 393 suppliers were evaluated, and in 2024, this number further increased to 656, showing a substantial growth in evaluation scope. During the evaluation process, one supplier in 2023 was classified as non-qualified due to delivery quality issues, and in 2024, two suppliers were deemed non-qualified, primarily because they failed to implement corrective measures for abnormal items, affecting the procurement operations.
All non-qualified suppliers were replaced according to the evaluation results, ensuring uninterrupted operations. Despite the increasing number of evaluated suppliers, STARLUX Airlines maintains a supplier qualification rate of over 99.5%, demonstrating the stability and effectiveness of its overall supply chain management system. By regularly reviewing and dynamically adjusting evaluation standards, strictly selecting partners, and maintaining effective communication and cooperation with suppliers, STARLUX builds long-term, stable partnerships. Through two-way communication and joint improvement mechanisms, the company works with suppliers to enhance the resilience and responsibility of the entire supply chain, supporting the achievement of sustainable development goals.