TAIPEI (AFP) - Taiwan's flag carrier China Airlines said on Tuesday its board has appointed Mr Lin Peng-liang as president.

Mr Lin, 60, who was formerly the Taoyuan Airport managing director, will succeed Mr Sun Huang-hsiang in the post.

Mr Sun, who was named as both company chairman and president in March, will retain his post as chairman.

The appointment comes as the airline struggles to achieve profitability this year. It is considering setting up a budget carrier amid stiff competition.

China Airlines reported a net loss of TW$1.22 billion (S$51.5 million) in the first half of this year.

Its revenues in the three months to September rose 5.36 per cent year-on-year to TW$37.37 billion.

But Mr Sun has said he is unsure of returning to profitability this year due to uncertainty about fuel prices, which account for about 40 per cent of overall costs.