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The Airline Industry reached its position that it is in today due to certain factors like

deregulation, privatization, liberal air-traffic agreements and also economic downturns. There

were also a several number of agreements which of course did not allow any sort of foreign

ownership or control of airlines.

The traditional carriers out there like Singapore Airlines, Cathay Pacific, British Airways offers

full range of services and options for the passengers all throughout. The passengers have a lot of

options while ticketing like online ticketing and also over the counter ticketing services. In

addition to that also, there is a certain level of flexibility when it comes to changing booking

dates or names in the tickets. Other additional services include lounge services for premiere class

customers, and also meals and entertainment services onboard. Then again most of these

traditional airlines serve a wide variety of long-medium and short-haul destinations with a wide

variety of aircraft types. These carriers use costly airport bases and hubs to schedule effectively

and capture passengers and help them reach their destination from the origin. However it is a

totally different story at the low-cost airliners side. Airlines like Air Asia,, Ryanair, easyJet,

Kingfisher follow almost the same model, and that is in order to provide cheap tickets they

provide very limited amount of services too. Like that of the traditional airlines these low-cost

airlines usually take the help of direct selling only and do not make use of travel agents. The

complimentary services provided are very basic. The carriers usually make use of a hub-and-

spoke model. You are usually asked to pay an extra charge when you want to acquire services

like those of the traditional carriers. In order to keep the costs even lower the use of secondary

airports are made like that of Gatwick in London

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Like most other businesses out there, the main aim of the airline industry is to generate the

maximum amount of revenue and incur minimum cost. As a benchmark, most of the airliners out

there make use of ATKs, ASKs, RPKs and RSKS. The entire cost structure consists of

various elements and includes personnel, fuel, capital cost, maintenance cost of assets, selling

expenses and also airport landing fees. Labour cost and maintenance cost make up the majority

of the cost structure.

After about five years after the September 11, 2011 attacks, the financial performance of most

commercial airlines around the world improved greatly. Passengers carried increased, and so did

the volume of cargoes.

Hong Kong has always considered as a leading gateway to the Chinese market and along with

that most of the industry observers out there considered Hong Kong as a major hub. Oasis Hong

Kong Airlines started off its journey as long-haul low-cost airlines and also offered exceptional

value all year round. It also provided its consumers with several fare types to meet their needs.

Since they operated long-haul flights it allowed them to have high average aircraft utilization

thus enjoying low operation costs. Along all these under its wings, Oasis Hong Kong Airlines

started off its journey from October 2006.

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Operations: Oasis Hong Kong Airlines was the only one of its kind back then toprovide long-haul flights and also on top of that, they even provided the customers with

business-class services unlike the other low-cost airlines around. It initially started off its

operations to Oakland and Chicago in USA and also in some other European countries

like Berlin, Colonge, Milan and Gatwick. Oasis Airlines saved costs by operating in

secondary airports like that of Gatwick of UK instead of Heathrow where the parking

costs were lower and it added to the low-cost of tickets.

Marketing and Sales: Also as a part of their low cost strategy, Oasis went into directsales of their tickets through their websites. Anyone with an access to a credit card could

easily buy the tickets from the website and in addition to that, other brick and mortar

travel agents sold the tickets too. If we talk about the concept of market positioning at

this point, then Oasis did not position itself as a low-cost airline, but took competitive

pricing as one of its competitive advantages.

Services: Though they were a low-cost airline, they never really compromised on theservices provided. It offered standard upgraded meals with complimentary drinks, in-

flight entertainment services such as video and audio programs with personal TVs and

in-flight magazines. Lounge access was also required would be available at an additional

cost.

Technology: