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Oasis

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OASIS Airlines
Introduction

Founded by Priscilla and Raymond Lee and headed by chief executive officer Stephen Miller, Oasis Hong Kong Airlines was perhaps the world's first long-haul, low-cost carrier. The airline received approval to fly to London, Cologne, Berlin, Milan, Oakland and Chicago in November 2005. It announced its acquisition of two Boeing 747-400s in March 2006 and planned to start its maiden service to London Gatwick in October 2006. Aspiring to bring the best features of both traditional and budget airlines together, the airline pioneered a business model that offered a world-class, long-haul product at an affordable price, but it was too early to tell if the airline would be successful.

Summary of key learning points and strategic issues

1. To allow for a discussion of what a business model is about and what one should look for when assessing a business model. 2. To reinforce the understanding about business models through analyzing and assessing the business model of a start-up airline and gauging its sustainability. 3. The importance of a sustainable competitive advantage in an extremely competitive industry. 4. The opportunities/threats presented by changing industry trends.

Discussion Questions

1. Perform a STEEP analysis to understand the general environment facing Oasis Airlines. How will the firm be affected by external factors? 2. Use Porter’s Five Forces Model to analyze the Airline industry in the Asia. Given this analysis, is the industry attractive or unattractive? 3. Who are Oasis Airlines’ main competitors? How do they measure up against these competitors? 4. What are Oasis Airlines’ main capabilities? Do they have a core competence? 5. Create a SWOT analysis to understand Oasis Airlines’ strengths and weaknesses. Does Oasis Airlines have a sustainable competitive advantage? Is

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