Jetstar Asia: A Low-Cost Airline in Trouble |
ICMR HOME | Case Studies Collection
» Business Strategy Case Studies
|
|||
EXCERPTS Contd...The Merger with ValuairIn June 2005, there were reports that Jetstar Asia had entered into merger talks with another loss-making LCC in Singapore, Valuair. However, both the companies soon announced that the merger talks had ended over differences on the proposed shareholding pattern in the merged entity.
Jetstar Asia Vs. CompetitionWhile Jetstar Asia was not very successful in the market, analysts noted that its rival Tiger Airways, with its strong business model, had managed to make an impact in the highly competitive low-cost market. Tiger Airways mostly served secondary cities. This helped it tap the markets ignored by the major carriers, which concentrated on big cities. Also, Tiger Airways followed a strict no-frills model to offer the lowest fares possible to its passengers. In contrast, Jetstar Asia catered to high traffic routes like Singapore to Hong Kong, Bangkok, and other cities where it competed against established airlines like SIA...
Exhibits
Exhibit I - Logos of Jetstar Airways and Jetstar Asia
Case Studies Links:-
Case Studies,
Short Case Studies,
Simplified Case Studies. |