Oasis Hong Kong Airline Essay Example

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. One of the company’s weaknesses was its short history. It was hard to know if customers were willing to switch airlines, or if they were willing to pay business prices.

Oasis Hong Kong Airlines used a Focused Cost Leadership as their business-line strategy by focusing on “both economy- and business- class passengers” as target segments and their “long haul, low fare” standard as their “niche” offering “exceptional value with customized options” in airline services. Oasis should also try to increase destinations in other major areas and focus on increasing their seating capacity for their seasonal peaks in passengers’. Plus conduct more frequent Industry and organizational SWOT analysis.

Since this case was written Oasis Hong Kong Airlines is now defunct. On April 9, 2008 Oasis applied to the High Court of Hong Kong Special Administration Region to appoint provisional liquidators. The court appointed a Mr. Middleton and Cowley of KPMG who took control at 2pm on that day and all flight operations were cancelled until further notice. Mr. Cowley and Middleton helped facilitate the travel arrangements for customers of Oasis with other airlines to make the transition as convenient and quick as possible.

On June 11, 2008 the High Court of the Hong Kong Special Administrative Region ordered that Oasis be wound up. The court decided that Oasis was unable to pay its debt and that it was best for Oasis and all it creditors for it to cease to exist.

The creditors that were appointed remain in place for claims made by creditors, employees or anyone who can provide a valid proof of claim against Oasis since the liquidation process began. Oasis has since filed for bankruptcy and was quickly put into liquidation by Hong Kong’s High Court in early April of 2008.

Some airline industry experts suggested “that Oasis's business model of punctual, top-notch service and lots of legroom at discount prices made it especially vulnerable to high oil prices” (Bradsher, K. 2008). Martin Craigs, in an 2008 interview with The New York Times said it best “it is an extremely precarious business when there are so many external factors outside the control of airline management, one being jet fuel prices and another being the credit crunch" when commenting about Oasis Hong Kong Airlines (Bradsher,K. 008). Oasis with proper planning possibly could have been a success, some interesting facts about a company that went under so quickly. In 2007, Oasis Hong Kong was voted "World’s Leading New Airline" and "Asia's Leading Budget/No Frills Airline" at the Annual World Travel Awards 2007. It was also named "New Airline of the Year" by the Centre for Asia Pacific Aviation of Australia, and was voted "Best New Service" and "Best Business Class Carrier" at the 2007 World Low Cost Airline Congress Awards held in London.

One can only wonder what went wrong. The airline had only five planes two Boeing 747-412 and 3 Boeing 747-481 owned previously by other airlines. Two hot meals and soft drinks were served free on both long haul routes in all classes and Oasis tickets were sold through the website and travel agents. Looking

at them from a business sense one would have to think that somewhere in the management of Oasis something went terribly wrong. This company had all the making of success and certainly there are many people who wish it had.

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