Aviation industry takes another hit as low-cost carrier, Oasis Hong Kong, stops operations
10 Apr 2008
Hard on the heels of three US carriers folding up operations over the last week, it is now the turn of a Oasis Hong Kong Airlines, a low-cost, long-haul carrier operating out of Hong Kong, to fall victim to rising fuel costs and cut-throat competition from fellow city-based carrier, Cathay Pacific Airways. the
Launched in October 2006, the 17-month-old carrier ceased operations Tuesday, with its CEO Stephen Miller saying it had applied for a voluntary liquidator. A Hong Kong court appointed two representatives of KPMG to oversee the liquidation.
Reports emerging in the media suggest that Oasis suffered HK$1 billion ($128.4 million) in losses since launch of operations.
Miller also said the company would continue to search for a new investor. According to Hong Kong media reports, China's HNA Group may be negotiating with Oasis.
The budget carrier was flying four 747-400s daily to London Gatwick and six-times-weekly to Vancouver and both the routes, according to Miller, enjoyed 90 per cent load factors.
