“Way smarter”: Valuair in the budget airline industry

Publication Type

Case

Publication Date

7-2013

Abstract

By 2004, the low-cost carrier model had just recently been introduced to Southeast Asia. Airlines under this model quickly began taking market share. Singapore’s first budget carrier, Valuair, finds itself in fierce competition between two rapidly emerging competitors in the second half of 2004. Valuair needs to expand in order to remain competitive. However, for this to happen the company needs additional access to capital. The CEO, Sim Kay Wee, has begun pitching to investors that his company is a smart low-risk investment. Is Sim right, given Valuair’s competitive position and the market environment in which it operates?

Keyword(s)

Strategic Management, Marketing, Budget Airlines, Airline Industry in Southeast Asia, and Investment Decisions

Discipline

Business Administration, Management, and Operations | Marketing | Strategic Management Policy

Research Areas

Strategy and Organisation

Data Source

Published Sources

Industry

Airlines

Geographic Coverage

Singapore

Temporal Coverage

2005

Education Level

Executive Education; Postgraduate; Undergraduate

Publisher

Singapore Management University

Case ID

SMU-13-0010

Comments

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Additional URL

https://cmp.smu.edu.sg/case/3411

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