Oasis Hong Kong Airlines: The First

long-Haul, Low-Cost Airliner in Asia

SYNDICATE 10
29116006 SENTOT RAKHMAD
29116196 ANWAR RUSTANTO
29116245 GINANJAR SAPUTRA
29116237 LISTRI HERLINA
SWOT ANALYSIS
Strength
The Capital support Weakness
by the Big Investor.
The Ability to run Have a little fleet
the company. Not yet buy new
Offering a low price aircraft because
compare to the have to wait
Competiitor.

Opportunity Threat

No One Offer long- Competition

houl flight with between airline that
cheap price during serve long-haul
that time flight.
External
Environment
- General Global
Demographic
Technological
Economical
Political/ Legal
Socio-cultural
Physical Environment
External
Environment - General

Demographic Economical Political

offer long range Lacks of Free trade
overhaul with commercial economic zone
standardize transport fleet Low-tax system
service Unstable oil price Adheres to
Offer 2 flight Hong kong adopts understand
class, and low a capitalist and economic liberal
cost carrier only liberal economic and capitalist
on economy class system
The pioneer of Inflation rate 0.3
long haul carrier (2005) and 0.9
service in Asia (2006)
External
Environment - General
Legal Socio-cultural Technological
Worldwide Average E-Business
deregulation following expenditure during becomes main
United States
holidays HK$9,320 core in Hong Kong
International air Nielsen (2005) flight industry
traffics are regulated
by bilateral air service Mixture of western High internet
agreement between and eastern penetration 59%
countries culture (2005)
Different regulation in
different countries
Civil Servant got Many airline
perks to send their companies
children to study planned to replace
abroad Boeing with Airbus
External
Environment - General
Physical
Global Environment
Worldwide competitive Noise control more
pressure triggered quiet than the others
series of privatization Using GTL (Gas to
of flag carriers in Liquids) that contains
Europe and Asian no sulphur
countries
Hong Kongs
International airport
becomes 5th busiest in
the world
Airline
IndustryTraditional
Carriers VS Low-Cost
Carriers
External
Environment Politics
Deregulation of blue sky policy

Pest Analysis
Influence by oil price that effect on the ticket
price, plane, price, and price that related to
Economics
Airport

Make people easy can travel

Social Change of life Style

Advance Technology in Aviation Industry which

Technologic
al
mean a lot of big plane and can take long-haul
External
A lot of competitors that can
The regulation make the new
adjust the budget with the
airline easy to enter the market
buyers

Environment really attracting the investors to

invest (High)
High

Threat of Bargaining
Industrial New
Entrants
Power of
Buyer
analysis
Rivalry Among
Existing Competitors
High

Bargaining
Threat of
Power of
Substitutes
Suppliers
High High
There are only land and sea There are only two suppliers
transportation which take long for commercial plane such as
time to reach destinations Airbus and Boeing
Internal Environment

Resources
Capabilities & Core
Competencies,
Value Chain Analysis
Financial Have funding investment from Raymond Lee and his wife
Resources Priscilla (property developer), Allan Wong (chairman and
CEO of VTech Holdings), and Richard K. Lee (founder of
Trinity Textiles)
Offered low-cost carrier

Resources
Operating long-haul flights would give Oasis a low operating
unit cost

Tangible
Physical Use secondary airports such as Gatwick (instead of Heathrow) and
Resources Oakland (instead of San Francisco).
Oasis offered standard upgraded meals with complementary drinks
and lounge access (would be available at an additional cost)
Oasis adopted traditional carriers model and relied on brick-and-
mortar travel agents to sell tickets.
Technological Have two Boeing 747-400s were configured for 81 business-class
Resources seats and 278 economy-class seats.

Human Had roughly 700 crew members in total by 2008

esources
tangible
Resources
Innovation Oasis as the only long-haul, low-fare airline operating out of
Hong Kong
Reputational Oasis had competitive price compared with the other airline
for both economy class and business class
Capability & Core Competencies
Tangible Valuable Rare Costly-to- Nonsubstitutable Competitive consequences
Resources imitate

Financial Yes Yes No No Temporary competitive

advantage

Physical Yes Yes Yes Yes Sustainable competitive

advantage

Technological Yes No No No Competitive parity

Intangible Valuable Rare Costly-to- Nonsubstitutable Competitive consequences
Resources imitate

Human Yes Yes No No Temporary competitive

Resources advantage

Innovation Yes Yes Yes Yes Sustainable competitive

advantage

Reputational Yes No No No Competitive parity

Oasis Value Chain
Analysis
 Value Chain Primary
Activities
1. Inbound Logistics:
Oasis provide some advantages such as snacks, drinks, TV
appropriate with different class of passengers
2. Operations:
Oasis offered daily service to London and six flights a week
to Vancouver
3. Outbound Logistics:
Adopted traditional carriers model and relied on brick-and-
mortar travel agents to sell tickets
4. Marketing & Sales:
100 free flights Hong Kong London at first launched
Value Chain Support Activities

1. Procurement:
Had purchased two Boeing 747-400s from Singapore
Airlines
2. Technological Development:
2 Boeing 747-412
3 Boeing 747-481
3. Human Resource Management:
Had roughly 700 crew in total by 2008
4. Firm Infrastructure:
The airline operated on two routes, from Hong Kong to
London Gatwick Airport & Vancouver International Airport
Porter
Generic
Strategy
Porter Generic Strategy Low
Cost
Another are
Oasis would
costs was
airport landi
parking fees
the airline
would use s
airports suc
Gatwick inst
of Heathrow
and Oakland
of San
Francisco in
 Porter Generic Strategy Low
Cost
Another area where Oasis would save on costs was airport landing and parking fees
because the airline would use secondary airports such as Gatwick instead of Heathrow
in London and Oakland instead of San Francisco in California.