10 April 2008

Another day, another airline goes bust

HONG KONG Ã¢â¬' The global credit crunch has claimed another airline with Oasis Hong Kong abruptly shutting down operations.

The airline went into liquidation yesterday and cancelled all scheduled flights, leaving hundreds of passengers stranded.

Overall, an estimated 30,000 people have had their travel plans affected.

Angry passengers have told the Hong Kong Standard that they felt badly let down by Oasis.

"They knew there was a problem last month so why were they selling tickets on March 31 to travel in July. That is dishonest," said Allan Bell, who spent HK$15,030 on tickets for his family, at the airline's headquarters in Tung Chung.

Maggie Leung, a third-year student in Britain, said: "They were still selling tickets this morning online and now they are liquidating. I never thought of this." She spent HK$5,000 on tickets.

Oasis chief executive Stephen Miller told a brief press conference: Ã¢â¬ÅâœIt is with great regret that Oasis announces that today the airline has voluntarily applied to the Hong Kong court to appoint a provisional liquidator."

He expressed confidence a strategic investor could be found within the next few days, but left the media conference without taking questions.

Oasis first flew in October 2006, offering flights from London Gatwick to Hong Kong which were well below those being offered by Cathay Pacific on the same route.

It later added flights from Hong Kong to Vancouver.

KPMG has been appointed as liquidator.

British Airways and Cathay Pacific are offering specially priced one-way flights for stranded Oasis passengers.

"There are hundreds of people stranded, including children returning after the Easter school holidays," said a Cathay Pacific spokeswoman.

The Hong Kong Economic Times reported that the airline was struggling with large debts.

Oasis was launched 18 months ago by husband-and-wife team Raymond and Priscilla Lee and employs almost 700 staff.

Oasis had been seeking investors in order to progressively expand its route network across Europe, North America and Australia Ã¢â¬Ëœin the near future, while targeted destinations included Chicago, San Francisco, Berlin, Cologne, Manchester, Milan, Melbourne and Sydney.

Ã¢â¬~¨Three US carriers have all ceased operations in the last fortnight - ATA Airlines, Aloha Airgroup and Skybus Airlines.

By : Ian Jarrett