Low cost airline Oasis goes bust
[9th April 2008]
Budget airline Oasis which offers flights from Gatwick airport to Hong Kong has gone into liquidation today with debts of £64 million.
The Hong Kong based airline launched in October 2006 with Gatwick to Hong Kong flights, before starting a service from Hong Kong to Vancouver in Canada last June. This mornings flight from Hong Kong to Gatwick landed as normal, but all the airlines flights have now been suspended.
Few airlines have attempted a low cost, long haul model and Oasis seems to be another victim of the surge in fuel prices. It offered one way flights from Gatwick to Hong Kong for as little as around £65 one way or £150 return.
With such low prices passenger numbers are believed to have been healthy, with occupancy levels at around 70 to 80%. But now rising fuel prices and increased competition appear to have taken their toll.
KPMG have been appointed as liquidators and Oasis is reported to be optimistic that a new investor will come forward to save the airline.
In the meantime hundreds of British holidaymakers and business people have been stranded in Hong Kong. Airline Cathay Pacific is offering Oasis customers a special one way economy fare on the Gatwick to Hong Kong route of £160 until 23rd April.
Perhaps ironically Oasis was named the worlds leading new airline at the World Travel Awards at the end of last year. Another budget airline based in Asia, AirAsiaX, is reported to be in talks with Stansted airport and Manchester airport about new flights to Kuala Lumpur in Malaysia.
Written by: Nick Purdom
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