Final Year Project Proposal

2993 Words12 Pages
Feasibility study of setting up a budget airline in Hong Kong
(Success factors of setting up a budget airline in Hong Kong)

Prepared for
Final year project
Coventry University & SCOPE,
City University of Hong Kong

Presented by
Steven
52657161
February 13, 2012 Table of Contents

1. Introduction…………………………………………...P.1

2. Background/ Problem Statement…………………..P.1- 3

3. Literature Review…………………………………P.3 - 6

4. Aim………………………………..…………………..P.6 5. Objectives…………………………………………..P.6 -7 6. Research method……………………………………….P.7 6.1 Questionnaire………………………………………P.7 6.2 Observation………………………………………...P.7

7.
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As in US, budget airlines have dominated the market as travelers are price driven; in Europe, more local airports are needed to be opened up to let more budget airlines to fly in; in Asia, there are more opportunities to expand the whole market but the path is not easy, since the market is still dominated by the national flag carriers. Besides, they are also supported by the cargo business. (Scott Lee, 2004)

Problems Statement: As we can see, budget airlines’ business not only become a trend over the globe, but also bring out more travelers and so to extend the economy of our own country or region, however, there is no budget airline at all currently in Hong Kong, what are the reasons? Few years ago there was once a low cost carrier- Hong Kong Oasis airway which offered “long haul low fare” was bankrupted after 18 months of operation, why would that happen? An Malaysian budget airline- Air Asia already developed its third home base in Thailand, meanwhile, there still aren’t any budget airlines setting up in Hong Kong as a home base, why? What are the success factors for a budget airline to develop? Is there feasibility for a budget airline to set up and form a home base in Hong Kong?

3. Literature Review:
3.1.Business strategy of Budget Airline: Markus (2005) once said “The business strategy of these low cost airlines to save costs is to offer no
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