Oasis Hong Kong Airlines went into liquidation today (9 April) and has cancelled all scheduled flights with immediate effect.
Beginning services in October 2006, it operated daily direct flights from Hong Kong to London Gatwick and six-times weekly to Vancouver.
With a business model of ”making frequent long-haul travel accessible to all,” the airline was one of the pioneering long-distance low-cost carriers, but it appears to have fallen victim to an increasingly vicious economic climate.
Oasis had been seeking investors in order to progressively expand its route network across Europe, North America and Australia ”in the near future,” while targeted destinations included Chicago, San Francisco, Berlin, Cologne, Manchester, Milan, Melbourne and Sydney.
But the budget long-haul model has clearly not worked in this case. It offered complimentary in-flight meals to economy and business passengers and video entertainment in every seat ” and all this at a price considerably below its main rival, Cathay Pacific. It initially offered tickets to Gatwick for less than 20% of the price then charged by its Hong Kong compatriot for flights to Heathrow.
Sky-high fuel prices have caused huge problems for all airlines, with many larger ones including Delta, US Airways and Northwest cutting services this year, some slashing staff and others raising surcharges and baggage costs.
Three US carriers have all ceased operations in the last fortnight - ATA Airlines, Aloha Airgroup and Skybus Airlines.
KPMG has been appointed Provisional Liquidators, whose immediate focus is ”helping Oasis”s customers make other travel arrangements as quickly as possible,” it said in a statement.
It is liaising with other airlines and urges passengers to check the website oasishongkong.com. Cathay is offering to help stranded passengers, with a discounted economy fare of ”160 ($316) for Oasis customers who had confirmed bookings on the London-Hong Kong rotation during the next two weeks - effective up to and including 23 April. A C$320 ($314) ticket is available on the Hong Kong-Vancouver route.
"We sympathise with the many passengers in Hong Kong, London and Vancouver who have been stranded by the Oasis' decision, and we will do our very best to help them through this difficult and stressful period," said Cathay Pacific chief executive Tony Tyler.
He noted that the Oasis case underlined the tough and competitive nature of the international aviation business.
Its hotline number is 0208 834 8893.