So... Who is next?

[Ryan N]

Hong Kong budget airline Oasis in liquidation

http://afp.google.com/article/ALeqM5...KRT4Wo6xlH6wSA

HONG KONG (AFP) — Hong Kong budget airline Oasis stopped flying Wednesday and announced it had gone into liquidation, just 18 months after it first took to the skies with eye-popping low fares.

At a brief news conference, chief executive Stephen Miller gave no explanation for the shut-down, which comes amid soaring fuel costs that have recently forced the closure of other carriers worldwide.

The move left an unknown number of passengers stranded in Hong Kong and the airline's two destinations, London and Vancouver.

"It is with great regret that Oasis Hong Kong Airlines has today voluntarily applied to the Hong Kong court to appoint a provisional liquidator," Miller said.

"We have therefore suspended all passenger services with immediate effect."

He said financial services group KPMG had been appointed as liquidator, and that they would now be seeking partners.

"We are very confident that somebody will come forward," he said. Miller then congratulated Oasis staff and walked out of the briefing.

All flights on Oasis departing from Hong Kong on Wednesday were cancelled, and travellers holding tickets were given a hotline number to contact.

Earlier, the Hong Kong Economic Times reported what it called a "rumour" that the company was struggling under debts of up to one billion Hong Kong dollars (128 million US).

Eddie Middleton, KPMG's partner in charge of restructuring services in Hong Kong, told reporters he had been first informed of a problem on Tuesday night and was appointed by the court on Wednesday.

He was not able to say why the company was in trouble and had not yet seen the carrier's accounts.

Middleton said his immediate priority was to help passengers who were stranded by the cancellation of flights or who had already bought tickets for future travel.

Oasis launched in October 2006, offering one-way Hong Kong to London pre-tax fares of 1,000 Hong Kong dollars (128 US). It later added a link to the western Canadian city of Vancouver.

The company, which employs just under 700 staff, had been operating daily between Hong Kong and London, and six times a week between Hong Kong and Vancouver, with plans to open additional routes to Europe and North America.

The company was founded by husband-and-wife team Raymond and Priscilla Lee, who said in an interview last year with AFP that the Oasis model would succeed because their planes spent less time on the ground.

But Oasis suffered from a bad take-off when its maiden voyage was delayed 30 hours after Russia withdrew permission to fly over its airspace at the last minute.

However, their model shook up the already competitive industry.

Rivals including Hong Kong's Cathay Pacific were forced to lower fares to compete with the super-cheap offers.

Oasis was part of the push for low-cost flights that has been so successful in the European market and, alongside Malaysian-based AirAsiaX, the firm tried to create a long-haul version of the cheap model.

Despite the early setbacks, they managed to attract a 30 million US dollar investment by Hong Kong-based asset management firm Value Partners last year.

The money was going to be used to buy 14 more second-hand Boeing aircraft to bolster the current fleet of five, whose average age is 10 years old, executives said.

Value Partners said in a statement on Wednesday it believed its investment was well-protected.

[Robert Zweck]

I would never have bought the Jungle Jet....bad move.

[Kurt A]

Oasis Hong Kong Airlines Provisional Liquidation update on passengers and crew

To minimize the inconvenience to its passengers, Oasis Hong Kong Airlines, under the management of its Provisional Liquidators, has been working closely with several airlines to offer preferred fares for Oasis passengers on both the London and Vancouver routes.

A full list of cooperating airlines and hotels is available for Oasis passengers’ easy reference on www.oasishongkong.com and details are updated on a regular basis as they become available.
This information is also available via travel agents.

Oasis appreciates the support of the cooperating airlines and apologizes for the inconvenience caused to current passengers.

In Hong Kong, the Oasis ground handler, Jardine Aviation Services has been assisting passengers arriving at the airport with alternative travel arrangements.

All Oasis flights remain cancelled until further notice.

Claims for Refund
Oasis customers may register their claims by submitting a Registration of Claims form to the Provisional Liquidators for unused portions of air tickets with confirmed bookings.

Oasis Crew Members - Returning Home
Since the appointment of the Provisional Liquidators, Oasis Hong Kong Airlines has undertaken a range of measures to bring Hong Kong based crews home.

Thirty-four crew members arrived from London Gatwick Airport today, with a further 32 crew members arriving this evening from Vancouver. All possible measures are being taken to bring home those Oasis crew members still abroad.

-Oasis Hong Kong Airlines

[Kieran Wells]

It is amusing that Oasis are still advertising their student bundle airfares to London! Most other airlines remove all advertising when they go down...

[Shameel Kumar]

Wholey smokes... they're dropping like flies!

With increasing fuel-prices now here to stay, looks like the industry is beginning a 'shake out' phase. Survival of the fittest for those carriers who haven't got strong financial backing.

Sad to see Oasis go..they had a great livery and seemed very promising.

Another one bites the dust I guess...

Who is next I wonder?
My guess would be Viva Macau

[NickN]

I don't know alot about Viva Macau but they seem to have a good marketing strategy and the destination is great. I suppose either another Asian or American airline may be next.

[Brian Wilkes]

Frontier. Watch this space!

[Robert Zweck]

Didn't some airline in the US called Champion Air go under the other day?

Originally Posted by NickN

I don't know alot about Viva Macau but they seem to have a good marketing strategy and the destination is great. I suppose either another Asian or American airline may be next.

Asian wise, I do wonder about Lion Air, Jetstar Asia, and mabye Tiger, Viva Macau were losing a lot of $$$ fast recently

AirAsia is the only strong one in the region