Oasis Airlines - Don’t Look Back in Anger
Recommend on Google+
A rash of low cost airlines have crashed out of existence in recent weeks as new carriers struggle to break into markets and cope with the added turbulence of steep rises in fuel costs and a weakening of global economic growth. The latest casulty is Oasis Hong Kong Airlines which collapsed into financial liquidation yesterday and suffered the same fate as Skybus, Aloha Airlines, ATA and Maxjet Airways.
It was always going to be tough for Oasis Airlines to compete effectively with the likes of Cathay Pacific, British Airways and Virgin Atlantic flying long haul to Asian destinations out of Gatwick who have effectively sown up the business class revenues. Industry experts claimed that the airline had too little in the way of start-up capital and that its cost base was little difference from the major established carriers. One criticism was that Oasis devoted 25% of its seating capacity to business passengers reducing the total number of seats available. Seat prices from London to Hong Kong starting at £65 were simply uneconomic and some reports estimate that the business built up operating losses in excess of 1 billion Hong Kong dollars during its short existence.
Fast economic growth in Asian emerging market countries will mean that market demand for airline travel will continue to grow strongly in the years ahead, no doubt there will be other new entrants into the market looking to establish a foothold.
blog comments powered by Disqus
Unit 2 Macro: The Importance of Productivity [20 May 2012]
Unit 2 Macro: Measuring Inflation in the UK [20 May 2012]
Q&A: What do we need to know about output gaps? [20 May 2012]
Unit 2 Macro: The Output Gap [20 May 2012]
Unit 1 Micro: Price Elasticity of Supply [13 May 2012]
Unit 1 Micro: Public Bads [12 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Made in China - but not quite so cheaply…... [7 May 2012]
Unit 1 Micro: Climate Change Policies - Finding the Right Mix [30 Apr 2012]
Unit 1 Micro: Using the Cost-Benefit Principle [30 Apr 2012]
Unit 4 Macro: The Euro Zone Crisis (Revision) [22 Apr 2012]
Unit 3 Micro: Quiz on Business Costs and Profits [11 Apr 2012]
Unit 3 Micro: Revision on Contestable Markets [8 Apr 2012]
Unit 3 Micro: Revision on Monopoly Price and Output [6 Apr 2012]
Unit 3 Micro: Monopoly and Economic Welfare [6 Apr 2012]
Unit 3 Micro: Revision on Scale Economies and MES [5 Apr 2012]
Unit 1 Micro: Revision on Price Elasticity of Supply [5 Apr 2012]
Unit 1 Micro: Revision on Producer Subsidies [2 Apr 2012]
Unit 3 Micro: Revision on Scale Economies, Technology and Prices [1 Apr 2012]
Unit 1 Micro: Nottingham introduces workplace parking tax [1 Apr 2012]
Unit 3 Micro: Revision on Fixed and Variable Costs [31 Mar 2012]
Price of Stamp increases to 60p [27 Mar 2012]
Unit 1 Micro: Breaking Down the Cost of Gas [4 Mar 2012]
The Economics of Climate Change - Stern 5 Years On [21 Feb 2012]
Unit 2 Macro: Focus on China - Inflation [26 Jan 2012]
Unit 4 Macro: Competitive Advantage in Trade (Some Videos) [12 Jan 2012]
Unit 1 Micro: Video Clips on Negative Production Externalities [29 Dec 2011]
Economics of Deforestation [20 Dec 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit 3 Micro: Unilever hit by rising costs [6 Nov 2011]
Unit 1 Micro: Costs and Benefits of a Super Sewer for London [1 Nov 2011]
Unit 1 Micro: Is the Sun Dipping on Solar Subsidies? [27 Oct 2011]
Unit 3 Micro: Ofcom gives stamp of approval for flexible pricing in mail [21 Oct 2011]
Unit 3 Micro: Tesco Behaving Badly - Price Anchoring [17 Oct 2011]
Unit 4 Macro: Unit Labour Costs and Inflation [12 Oct 2011]
Unit 1 Micro: Exercise on Market Supply [26 Sep 2011]
Unit 4 Macro: Greek Economy at Default’s Door [25 Sep 2011]
Unit 4 Macro: Bangladesh and Comparative Advantage in Textiles [19 Sep 2011]
Unit 3 Micro: Fixed and Variable Costs [18 Sep 2011]
Unit 3 Micro: Short Run Costs of Production [6 Sep 2011]
NHS spending good, private provision bad? [5 Sep 2011]
Starter Activity: Health Economics [1 Sep 2011]
Unit 1 Micro: Cotton Prices and the Retail Price of Clothing [13 Jul 2011]
Unit 1 Micro: Economics of Volatile Corn Prices [12 Jul 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
Unit 3 Micro: Oligopsony - Dairy Losses Drive Farmers from the Fields [10 Jul 2011]
Where there’s muck there’s brass [6 Jul 2011]
AQA Macro: Remember to revise inflation [25 May 2011]
AS Macro Key Term: Cost Push Inflation [24 May 2011]
AS Macro Key Term: Inflation [24 May 2011]
A2 Micro: Price Discrimination [19 May 2011]
Unit 3 Micro: Monopsony Power in Markets [19 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
A2 Micro: High and Low Marginal Cost Products [19 May 2011]
Unit 3 Micro: Perfect Competition [19 May 2011]
A2 Micro: Outsourcing [18 May 2011]
A2 Micro: Business Growth [18 May 2011]
A2 Micro: Innovation Efficiency and Welfare [18 May 2011]
A2 Micro: Moving Away from Profit Max [18 May 2011]
Unit 3 Micro: Diseconomies of Scale [18 May 2011]
A2 Micro: Minimum Efficient Scale [18 May 2011]
A2 Micro: External Economies of Scale [18 May 2011]
A2 Micro: Economies of Scope [18 May 2011]
Interest Rates Held at 0.5% once again [5 May 2011]
A2 Micro: EU Aviation - State Aid and State Ownership [28 Apr 2011]
Wiki Revision: A to Z on Monopoly [23 Apr 2011]
A2 Micro: Changes in Costs and Profits [23 Apr 2011]
Key AS Micro Terms: Taxes and Subsidies [18 Apr 2011]
Key AS Micro Terms: Costs and Profits [16 Apr 2011]
Unit 1 Micro: Information Failure [15 Apr 2011]
China set to become exporter of inflation [14 Apr 2011]
Unit 3 Micro: Solar Panels and Economies of Scale [11 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
UK Minimum Wage rises by 2.5% in October 2011 [8 Apr 2011]
AS Macro Key Term: Aggregate Supply Shock [6 Apr 2011]
AS Macro Key Term: Inflationary Pressure [5 Apr 2011]
OCR F585 June 2011: Competitiveness [31 Mar 2011]
Progress towards low carbon economic growth [18 Mar 2011]
EU Economics: Germany leads Euro Zone revival [25 Feb 2011]
Intense focus on cutting emissions is dumb argues Lomborg [16 Feb 2011]
Combining monetary and fiscal policy to curb inflation in China [16 Feb 2011]
Economics Q&A: What factors help to explain rising food prices? [14 Feb 2011]
Economics solar power government subsidies [8 Feb 2011]
The 25 Countries Whose Governments Could Get Crushed By Food Price Inflation [5 Feb 2011]
EU Economics: Hopes for a low carbon future in Europe [3 Feb 2011]
Changes in Real Prices [24 Jan 2011]
The Externalities of Plastic [24 Jan 2011]
Economics Q&A: Tragedy of the Commons and Market Failure [18 Jan 2011]
Economics Q&A: How might rising food prices affect food retailers and manufacturers in the UK? [16 Jan 2011]
Environmental Economics: Five Fresh Links [13 Jan 2011]
Economics Q&A: What economic factors affect the demand for new cars? [9 Jan 2011]
Revision: Consequences of Unemployment [1 Jan 2011]
Growth and Strategy at Domino’s Pizza [27 Nov 2010]
Yet another airline cartel story….. [9 Nov 2010]
Economics at the Movies - Our Daily Bread [28 Oct 2010]
Departing from pure profit maximisation [14 Oct 2010]
The Social Cost of Dementia [21 Sep 2010]
Drug rationing - the role of NICE [4 Aug 2010]
Cocoa Economics [30 Jul 2010]
A Lewis Turning Point? Wages in China [8 Jun 2010]
ECONOMICS TEACHER RESOURCE NEWSLETTER
Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.
