“Way Smarter”: Valuair in the budget airline industry

Abstract

Subject area

Strategic management and marketing.

Study level/applicability

Executive education; postgraduate; undergraduate.

Case overview

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?

Expected learning outcomes

Students will be able to apply strategic frameworks in order to develop an understanding of Valuair's market position and use this understanding to advice investment decisions.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

Citation

Fan, T.P.C. (2013), "“Way Smarter”: Valuair in the budget airline industry", , Vol. 3 No. 4. https://doi.org/10.1108/EEMCS-07-2013-0145