Oasis Airlines Gone.

Steyr

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSHKG17584020080409

Lone HK budget carrier Oasis halts flights

Wed Apr 9, 2008
By Joanne Chiu and Joseph Chaney

HONG KONG (Reuters) - Hong Kong-based budget carrier Oasis Hong Kong Airlines said on Wednesday it had halted flights and would go into liquidation after just 17 months in the air as record high fuel prices and stiff competition triggered heavy losses.

Oasis' decision to pull the plug on operations out of Asia's third-busiest airport raises fresh questions about the viability of budget airlines, which are struggling with rapidly rising costs and facing a potential slowdown in demand as world economic growth cools.

The carrier, which said in January 2007 that it planned to go public on the Hong Kong stock market by late 2009, is now looking for investors to rescue the embattled firm or buy its assets, executives told reporters.

Speculation abounds that dominant Hong Kong airline Cathay Pacific (0293.HK: Quote, Profile, Research) might make a pitch to buy Oasis, but Cathay spokeswoman Carolyn Leung said it would not comment on rumors.

Oasis, which flies to London and Vancouver, took off in October 2006. But its maiden flight to London didn't get off the ground after it failed to secure permission to fly over Russian airspace.

Oasis accumulated losses of about HK$1 billion ($128 million) over two years of operation, local newspapers reported. Executives declined to comment on the scale of the losses.

Sources close to Hainan Airlines Co (600221.SS: Quote, Profile, Research)(900945.SS: Quote, Profile, Research) -- China's No. 4 carrier, partially controlled by billionaire George Soros -- said its parent HNA Group is interested in buying Oasis to muscle into the Hong Kong market, which is seeing strong growth as personal and business travel to and from China booms.

Those sources with knowledge of the matter told Reuters the firm had been in discussions for months to buy control of Oasis, and had approached the city's government about the deal.

vulcan57

The result of difficult times I suppose. At least there are now 5 747's going cheap, Mr O'Leary where are you!!

Oilrig

Low cost model doesn't extend to long haul.

Oasis failure was due to the usual holes lining up.

Hint.. they had to buy their aircraft rather than lease them.

Steyr

Oilrig wrote: »

Low cost model doesn't extend to long haul.

It wouldnt suprise me if he wanted to go over the Pond, and il be one of the first to buy a return from JFK. If Mr O'Leary ever did it id want to shake his hand, true Business man, straight to the point and cut the crap, they opened up Europe.

Traffic

Frontier airlines has filed for bankruptcy protection in the US

Fabio

Just after reading about the loss of a few airlines in the US along with American Airlines cutting a lot of short haul operations (partly due to the the MD-80 fleet having to be rechecked).

Tough times ahead for some carriers but the big-boy budget airlines like Ryanair and EasyJet will have no real worries I'd say.

On the subject of leasing, would I be right in saying Ryanair lease no aircraft?

Punchy07

Fabio wrote: »

Just after reading about the loss of a few airlines in the US along with American Airlines cutting a lot of short haul operations (partly due to the the MD-80 fleet having to be rechecked).

Tough times ahead for some carriers but the big-boy budget airlines like Ryanair and EasyJet will have no real worries I'd say.

On the subject of leasing, would I be right in saying Ryanair lease no aircraft?

Correct they own 165 737-800s(info on all 165 of them found here http://www.planespotters.net/Airline/Ryanair )

Oilrig

And they have a s**t load of cash...

However, if they can't hedge their fuel, it looks like interesting times ahead.

738's for cheapish charter IMHO.