Economic and trade exchanges have become more and more frequent between China and Taiwan in recent years. After decades of confrontation, it is finally evident that a tighter ice-breaking relationship exists now between the two governments reinforced by an inseparable historical relationship between the two peoples. Accordingly, both governments have established responsible organizations - the Mainland Affairs Council and the Association for Relations Across the Taiwan Straits ¡V to coordinate and solve the demands of the people. As a result of positive changes in policy, one of the main expected benefits amongst more commercial opportunities are the cross-strait direct flights. In recent years, difficult times have hit Taiwan's airline industry coming initially from a highly competitive domestic airline environment, followed by the establishment of the High-Speed Rail system and further dragged down from the Financial Crisis. The result was a reduction in market share and revenues far below the levels in its boom years forcing players to reduce the number of flights and routes to various parts within Taiwan and shutdown of one of the major domestic airlines. However, after the announcement and release of the new cross-strait direct-flight policy, Taiwan's airline industry is expected to recover from this depression and come to life. Nevertheless, the most significant issue is how the Taiwanese airlines will implement their marketing strategies to establish a strong position for themselves within the Taiwan market. Therefore, this study aims Therefore, this study aims to use a case study approach to analyze cross-strait direct-flight strategies, and it is hoped that this research can be used as a reference for airlines to establish their strategic planning and an appropriate business model for the future. The process and abstract of this research are as follows: 1) Gain a clear understanding of direct-flight policy and analyze the current status of the airlines industry 2) Analyze market potential and business opportunities for the airline industry arising from the direct-flight policy 3) Evaluate prevailing growth strategies for the airline industry moving forward 4) Case Study of China Airlines: Operating Performance and Industry Environmental Analysis 5) Study and provide recommendations on cross-strait direct-flight strategies for China Airlines