Oasis Hong Kong Airlines Limited -
OASIS HONG KONG AIRLINES LIMITED –
WHAT WENT WRONG AND WHAT SHOULD HAVE DONE TO SAVE IT FROM BANKCRUPTCY
Table of Content
1. 2. 3. 4. 5. 6. Company Background Liquidation Timeline Causes of Failure Impacts of Oasis’s Case What Should Have Done to Save Oasis from Bankruptcy Conclusion
Company Background
Oasis Hong Kong Airlines Limited
• Long-haul budget airline • Hub at Hong Kong International Airport • Founder Mr. Raymond Lee Ms. Priscilla Lee • Started operation – Oct 26, 2006
Company Background
• 2 routes
HK ↔ London (Gatwick) HK ↔ Vancouver
Company Background
Oasis Hong Kong Airlines Limited
• Start of business
– 5 aircrafts – 700 staff
Competitive Advantage Lower Cost Differentiation
• Marketing strategy
– Differentiate product by class, price & service level – Launch promotion as first marketing initiative – Using a Computer Reservation System – handled all inbound customer calls in a basis of seven days a week – partnered with various service agencies
Competitive Scope
Broad
Target
Full Service Airline/Oasis Budget Airline
Narrow Budget Airline Target
Company Background
• Business Model punctual and top-notch services
• Organizational Structure – 3 key figures
Chairman Executive Director Chief Executive Raymond Lee Priscilla Lee Steve Miller
Priscilla Hwang Lee (L) and Raymond C. Lee, (R) invested in the new long haul airline 'Hong Kong Oasis, ' with Chief Executive, Steve Miller
Liquidation Timeline
• Announced Liquidation – April 9, 2008
Oasis Liquidation Timeline
Causes of Failure
• High cost by High jet fuel prices – Jet-fuel prices - biggest share of airline’s cost – in the past year alone, fuel prices have surged more than 60 percent
Escalating fuel prices since 2007
• High cost by Low fares
– tickets to Gatwick for as little as HK$1,000 one-way – Compared to Cathay Pacific’s flights to Heathrow:
• Economy class - less than 20 % • Business class – one-third of the price
–
WHAT WENT WRONG AND WHAT SHOULD HAVE DONE TO SAVE IT FROM BANKCRUPTCY
Table of Content
1. 2. 3. 4. 5. 6. Company Background Liquidation Timeline Causes of Failure Impacts of Oasis’s Case What Should Have Done to Save Oasis from Bankruptcy Conclusion
Company Background
Oasis Hong Kong Airlines Limited
• Long-haul budget airline • Hub at Hong Kong International Airport • Founder Mr. Raymond Lee Ms. Priscilla Lee • Started operation – Oct 26, 2006
Company Background
• 2 routes
HK ↔ London (Gatwick) HK ↔ Vancouver
Company Background
Oasis Hong Kong Airlines Limited
• Start of business
– 5 aircrafts – 700 staff
Competitive Advantage Lower Cost Differentiation
• Marketing strategy
– Differentiate product by class, price & service level – Launch promotion as first marketing initiative – Using a Computer Reservation System – handled all inbound customer calls in a basis of seven days a week – partnered with various service agencies
Competitive Scope
Broad
Target
Full Service Airline/Oasis Budget Airline
Narrow Budget Airline Target
Company Background
• Business Model punctual and top-notch services
• Organizational Structure – 3 key figures
Chairman Executive Director Chief Executive Raymond Lee Priscilla Lee Steve Miller
Priscilla Hwang Lee (L) and Raymond C. Lee, (R) invested in the new long haul airline 'Hong Kong Oasis, ' with Chief Executive, Steve Miller
Liquidation Timeline
• Announced Liquidation – April 9, 2008
Oasis Liquidation Timeline
Causes of Failure
• High cost by High jet fuel prices – Jet-fuel prices - biggest share of airline’s cost – in the past year alone, fuel prices have surged more than 60 percent
Escalating fuel prices since 2007
• High cost by Low fares
– tickets to Gatwick for as little as HK$1,000 one-way – Compared to Cathay Pacific’s flights to Heathrow:
• Economy class - less than 20 % • Business class – one-third of the price
–