Oasis Hong Kong

Oasis Hong Kong Airlines

The First Long-Hal, Low-Cost Airliner in Asia

Introduction

Oasis Hong Kong Airlines was founded by Stephen Miller in August 2006. He is using the principal investment form property developer, Raymond Lee and Pricilla. Oasis is positioning itself as the only long-haul, low-fare airline operating out of Hong Kong. The Lee’s become the majority of seed funding, and Allan Wong, the chairman and CEO of VTech Holding, and Richard K.Lee, founder of Trinity Textiles, as the additional player to additional investment in Oasis.

Oasis offered two classes of service, which are economy and business-class passengers. It only sold one-way tickets which on the Hong Kong London route which sell for low as HK$1.000(US$128) for an economy class seat and HK$6.600 (US$ 846) for a business class seat, excluding taxes and surcharges. The Oasis also had relatively simple, easily understood fare structure, which the customer expected customers would find appealing.

Operating long-haul flight would allow the airline to have high average aircraft utilization and efficiency. Oasis could achieve average aircraft utilization in excess of 15 hours per day, and would give a low operating unit cost on a per available seat kilometer basis. Oasis has two airplanes, Boeing 747-400, which can carry 81 business-class seats and 278economy-class seats. All passengers in economy class would be offered standard complimentary hot meal. For business-class passengers, Oasis would offer standard upgraded meals with complimentary drink.

After stumbling upon an advertisement about another airline offering around trip ticket from Hong Kong to London form 378 dollars, he decided that it was time for him to prove that his business model would prosper.

External Environment Analysis

A. The General Environment

STEEP Analysis

1. Social /Demographic

2. Technological

3. Economic

4. Environmental/Geographic

5. Political/Legal/Governmental

Social/Demographic Segment: Make it...