Oasis number one target market in YVR
is not really CX
, but those already taking lower rates flights on JL
, and BR
too). By using connecting flights, these carriers retail fares in the ethnic Chinese market is at par with what Oasis is offering. At the same prices, these passengers would be drawn to the non-stop service by Oasis.
Second target market are those that can only afford to travel once every three years, now they can go at least once a year, plus those now can afford to travel twice a year.
is increasing its summer schedule to three times a day, a very significant increase in seat availability. They are droping the lowest prices level, and has the larger seat volumn to make tactical adjustment to compete with Oasis - if necessary.
Do note aside from the lowest Oasis rates at $299 one way ($600 return), once that seat bucket is sold out, the next level fares at $700 range is similar to all other connection carriers. On tactical fares level movement, Oasis will be facing an uphill battle with CX
, and at a certain level loss its pricing advantages with connection carriers.
One major factor Oasis will be facing is IROPS (Iregular Operations - i.e. delays/cancellation). All network carriers have interline agreement, and can endorse passengers to each other for protection if necessary. Oasis has non, thus once in an IROPS situtation, it would be very difficult for passengers. Their capacity for such recovery is extremely limited, thus at a much higher recovery cost. The longer the distance you fly, the longer in time and money it cost to recover from IROPS. One such IROPS can wipe out a whole month of revenue.
Oasis entry to YVR
is not that bad a corporate decision for a O&D only carrier catering for mainly Hong Kong ethnic Chinese market. However, It would be interesting to watch how Oasis would 'play' in the YVR
market, only time can tell.