Oasis Hong Kong Airline
Oasis Hong Kong Airlines: The First Long Haul, Low Cost Airliner in Asia
Team A
Scott Burgoyne, Marvin Cook, Randy Collins, Amanda Baldwin, Jason Odle and Cynthia Hicks-Leeper
Everest College On-line
Business Policy and Strategy
MAN 4764-1001
Instructor Monya Ashe
February 11, 2012
Introduction
Oasis Hong Kong Airlines was founded in February 2005 by Rev. Raymond C. Lee, and his wife, Priscilla H. Lee had they survived; this month would have marked their seven year anniversary. Unfortunately an airline that became known for its low fares liquidated it assets three years and two months after its start in April 2008. Oasis alleged that the company was doing well claiming that the company broke even after the first six months of operation. But Oasis liquidation proved that the company wasn’t doing as well as it claimed. Oasis attributed their success to flying long-haul so as to decrease maintenance and fuel costs. But professionals in the field say flying long haul sectors burns more fuel and requires similar maintenance to short-haul aircraft in order to ensure airworthiness. The fact that Oasis charges such low prices for it services meant it did not generate enough revenue to cover its operating cost. Oasis’s attempt at competiveness turned out to be its downfall.
Oasis Hong Kong Airlines had several core competencies. One of the company’s most important core competencies was the fact that Oasis was the only airline in the area to offer long haul flights for low cost, as the other airlines offered only short haul. Another core competence for Oasis was their ability to offer economy and business class. No other low cost airline in the area offered this. Another one of Oasis’ resources includes using secondary airports, saving the company money on landing and parking fees and the Hong Kong cargo business. Their planes could fill their storage areas with cargo and make money from that as well as passengers.
Team A
Scott Burgoyne, Marvin Cook, Randy Collins, Amanda Baldwin, Jason Odle and Cynthia Hicks-Leeper
Everest College On-line
Business Policy and Strategy
MAN 4764-1001
Instructor Monya Ashe
February 11, 2012
Introduction
Oasis Hong Kong Airlines was founded in February 2005 by Rev. Raymond C. Lee, and his wife, Priscilla H. Lee had they survived; this month would have marked their seven year anniversary. Unfortunately an airline that became known for its low fares liquidated it assets three years and two months after its start in April 2008. Oasis alleged that the company was doing well claiming that the company broke even after the first six months of operation. But Oasis liquidation proved that the company wasn’t doing as well as it claimed. Oasis attributed their success to flying long-haul so as to decrease maintenance and fuel costs. But professionals in the field say flying long haul sectors burns more fuel and requires similar maintenance to short-haul aircraft in order to ensure airworthiness. The fact that Oasis charges such low prices for it services meant it did not generate enough revenue to cover its operating cost. Oasis’s attempt at competiveness turned out to be its downfall.
Oasis Hong Kong Airlines had several core competencies. One of the company’s most important core competencies was the fact that Oasis was the only airline in the area to offer long haul flights for low cost, as the other airlines offered only short haul. Another core competence for Oasis was their ability to offer economy and business class. No other low cost airline in the area offered this. Another one of Oasis’ resources includes using secondary airports, saving the company money on landing and parking fees and the Hong Kong cargo business. Their planes could fill their storage areas with cargo and make money from that as well as passengers.
References: Hitt, M, Ireland, R, Hoskisson, R. (2011). Concepts and Cases Strategic Management Competitiveness & Globalization. South-Western Cengage Learning: Mason, OH Bradsher, K. (2008). Hong Kong airline goes bankrupt. NYtimes.com. Retrieved from http//www.nytimes.com/2008/04/09/business/worldbusiness/09iht-air.1.11813763.html http://www.oasishongkong.com/ http://www.absoluteastronomy.com/topics/Oasis_Hong_Kong_Airlines