Oasis Hong Kong rumoured to stop flights

[Y. J. Foo 0]

UPDATE 1-HK budget airline Oasis to stop flying -paper

 

(Adds CEO comments on news conference in para 2)

 

By Joanne Chiu

 

HONG KONG, April 9 (Reuters) - Hong Kong-based budget carrier Oasis Hong Kong Airlines is saddled with heavy losses and will halt flights, local media reported on Wednesday, while its chief executive said a news conference would be held on the matter.

 

"We have no comment for the time being," Oasis CEO Stephen Miller told Reuters.

 

The airline, which began flights in October 2006, had accumulated losses of about HK$1 billion ($128 million) during two years of operation as it struggled to grab a slice of the market, the Hong Kong Economic Times quoted unidentified sources as saying.

 

Sources close to Hainan Airlines Co (600221.SS: Quote, Profile, Research)(900945.SS: Quote, Profile, Research) -- China's fourth largest carrier and partially controlled by billionaire George Soros -- said the carrier was interested in buying Oasis in an effort to muscle into Hong Kong's aviation market.

 

The sources told Reuters the firm had been in discussions for months to acquire a controlling stake in Oasis, and had approached Hong Kong's government about the deal.

 

The Hong Kong Economic Times report added that Oasis had been suffering losses on almost every long-haul flight it flew.

 

The carrier's Web site -- which sells tickets -- was functioning as normal, and its flights were still listed on the Hong Kong International Airport's Web site.

Oasis operates flights from Hong Kong to London and Vancouver.

 

The Hong Kong Economic Times cited sources as saying that low estimates for operating costs were part of the reason for the airline's difficulties, while the airline was expected to announce details on refunds of about HK$100 million from advance bookings. (US$1=HK$7. (Reporting by Joanne Chiu; Writing by Joseph Chaney; Editing by Edmund Klamann)

 

Reuters

[Ryan Soh 3]

It is not a rumour anymore. An announcement will be made today at 2pm about the state of the company, according to my HKIA inside source. Chances are, white flags will be unfolded and waved.

[Azri M. 0]

This year is gotta be the worst year for airlines. We have Skybus, Adam Air, Alitalia (near bankruptcy), and now Oasis Hong Kong. (Did I miss any other airlines?)

 

Sad, as Oasis Hong Kong is still very young.

[Mushrif A 3]

Makes one think about the future fate of Airasia X. Do the economics still add up?

[Y. J. Foo 0]

(Did I miss any other airlines?)

 

Aloha.

ATA.

 

And more I can't recall right now.

[Min 6]

Malaysia Airlines?

[Sneeze Lam 0]

Sorry for Chinese reporting.......

Busy at the moment, may members who knows Chinese help in translation.

 

甘泉航空結業航班或即時停飛 (星島) 04月 09日 星期三 01:35PM

 

旅遊發展局主席田北俊 證實，開業不足2年，本港唯一一間廉價航空公司甘泉航空 結業，所有航班即時停飛。田北俊表示，甘泉航空已證實結業，公司正在開會商討清盤，暫時不知道今晚的航機會否即時

 

停飛，以及有多少旅客受影響，政府相關部門正進行協調。田北俊說，甘泉航空是小公司，面對油價高企，成本效益不高，他對公司結業表示失望。他又說，本港多年來均沒有航空公司結業，當局沒有設立任何基金處理類似事件，現時旅發局及旅遊事業署等部門，正與甘泉航空協調，尋求可行方案，包括接洽其他航空公司代為接載已購買機票的乘客。有買了甘泉機票的乘客，早上就去到東涌 東薈城 的甘泉航空辦事處查詢。他們表示，早上致電甘泉無法接通查詢熱線，所以要親自瞭解情況。甘泉航空下午2時會開記者會，交代事件。

[Wilber Tan 0]

Malaysia Airlines?

 

zzzz..u hope so?? sia soi ar...

 

luckily they have just gain profit..phew..

[Ryan Soh 3]

This year is gotta be the worst year for airlines. We have Skybus, Adam Air, Alitalia (near bankruptcy), and now Oasis Hong Kong. (Did I miss any other airlines?)

 

Sad, as Oasis Hong Kong is still very young.

Adam Air - Accident waiting to happen so they are better off gone.

Alitalia - They have been dying for a long time, but they are not dead yet.

Skybus - They were a very optimistic upstart but the O&D traffic from CMH is like... err where?

Oasis - I thought they were struggling along fine but it was a case of a very unfortunate pull out of investors. Also fuel is just too expensive to be flying long haul these days if yuo do not have the proper foundation.

Aloha - definitely an icon that will be missed.

ATA - I don't know much about them except that they lost a crucial contract to keep afloat. Sad sad sad...

[Sneeze Lam 0]

Update News from Press Conference:

 

ALL Oasis flights depart from HKG STOP immediately!

[Y. J. Foo 0]

I try my best to translate the article in Chinese for the benefit of those who don't read Chinese.

 

甘泉航空結業航班或即時停飛 (星島) 04月 09日 星期三 01:35PM

Oasis Hong Kong closes, flights may be grounded immediately (Sing Tao) 9 April Wednesday

 

旅遊發展局主席田北俊 證實,開業不足2年,本港唯一一間廉價航空公司甘泉航空 結業,所有航班即時停飛。田北俊表示,甘泉航空已證實結業,公司正在開會商討清盤,暫時不知道今晚的航機會否即時停飛,以及有多少旅客受影響,政府相關部門正進行協調。田北俊說,甘泉航空是小公司,面對油價高企,成本效益不高,他對公司結業表示失望。他又說,本港多年來均沒有航空公司結業,當局沒有設立任何基金處理類似事件,現時旅發局及旅遊事業署等部門,正與甘泉航空協調,尋求可行方案,包括接洽其他航空公司代為接載已購買機票的乘客。有買了甘泉機票的乘客,早上就去到東涌 東薈城 的甘泉航空辦事處查詢。他們表示,早上致電甘泉無法接通查詢熱線,所以要親自瞭解情況。甘泉航空下午2時會開記者會,交代事件。

 

Tourism Board chairman confirmed the only HK LCC Oasis, which operated for less than 2 years will shut down, and all flights are grounded immediately. He said that Oasis is now confirmed to shut down and the company is discussing on liquidation, it is not immediately known if tonight's flights are grounded and how many passengers are affected, and the related government departments are collaborating on the matter. He said Oasis was a small company which faced soaring fuel price and low revenue. He was disappointed with the closure of the company. He also said in HK there were no airline closures and the department did not set up any fund to deal with such issues. Currently tourism boards are dealing with Oasis to find a solution, including contacting other airlines to carry ticket holders. Passengers who bought tickets on Oasis went to the airline's office to inquire on the matter. They said they couldn't contact Oasis via phone, therefore they went to find out the situation themselves. Oasis organized a press conference on the matter at 2pm.

[Bennedic 0]

Adam Air - Accident waiting to happen so they are better off gone.

Alitalia - They have been dying for a long time, but they are not dead yet.

Skybus - They were a very optimistic upstart but the O&D traffic from CMH is like... err where?

Oasis - I thought they were struggling along fine but it was a case of a very unfortunate pull out of investors. Also fuel is just too expensive to be flying long haul these days if yuo do not have the proper foundation.

Aloha - definitely an icon that will be missed.

ATA - I don't know much about them except that they lost a crucial contract to keep afloat. Sad sad sad...

 

Add to that Big Sky and Boston-Maine.

[Isaac 0]

Malaysia Airlines?

Impossible. Unlike Swissair, Malaysia Airlines has the government, or Malaysian tax payers to back them up

 

Air Asia X however ...

 

[Pieter C. 5]

Real sad, not only for the employees (and related families), but also the booked passengers and me (as booked LGW-flights for 08may08 just to see/spot these Oasis aircraft)

 

Wonder if I'll be able to see them in HKG as well in June; probably gone already

[Sneeze Lam 0]

Wonder if I'll be able to see them in HKG as well in June; probably gone already

 

 

This is not something that can be predicted by you and me, anyway, it is sad to know this news and......the 3rd leased ANA B744 is not able to join the fleet.

[Chan CS 0]

I find it quite fishy actually. This all happen just in short time (for us normal passenger), and they were asked to ground their a/c.

 

Are there anything that unknown to us? Bigger problem behind the scene?

[Sneeze Lam 0]

I find it quite fishy actually. This all happen just in short time (for us normal passenger), and they were asked to ground their a/c.

 

Are there anything that unknown to us? Bigger problem behind the scene?

 

 

You mean Oasis?

 

I think it is not fishy, at least the rumor has already spread for the past 7 days (as reported by news). And in fact, I have such rumor heard even as early as 2-3months before.

 

Also, back to basic, with such a high fuel price, for such a long haul, close-to-FULL service airline is really hard to lower the price operating in 2 most comparative routes.

 

Check out the price of HKG/LHR of NZ, QF and even VS. The price is just one thousand something more (including tax and surcharges). But those traditional airlines although may suffer lost with that low price, they still able to survive by the cover of other profit routes, what about Oasis? Two routes, all low cost, where to get the coverage? Therefore, the company recorded a billions (not sure is US or HKD) lost since the in service date (Oct, 2006).

 

I agree the news comes in a sudden, but it is quite understood by the way.

[Wilber Tan 0]

I find it quite fishy actually. This all happen just in short time (for us normal passenger), and they were asked to ground their a/c. Are there anything that unknown to us? Bigger problem behind the scene?

ya..it is very weird that it have to shut down immediately..looks like something is happening behind..will they refund for their all thier canceled flight?if yes, a great loss oso..if no, walau..very unfair..by the way, will they refund for all thier cancelled flight??

[Mushrif A 3]

Nothing's fishy or weird. If the Directors feel that the situation is no longer tenable, they are legally responsible to decide that its the curtains for Oasis. It cannot continue to accrue liabilities, if a Plan B fails to materialise. the Directors would have taken into account winding down costs, from whatever's remaining of Oasis' assets.

[Wilber Tan 0]

by the way,,any refund for the cancellation?

[Sneeze Lam 0]

Since I am now in the office, I am unable to reach a English News website at the moment. So, I am sorry for Chinese update again

國泰加開航班助甘泉受影響旅客 (星島) 04月 09日 星期三 05:08PM就甘泉航空 由今日開始取消運作，國泰航空 應香港政府要求提供協助，國泰已向政府保證將全力幫助受影響乘客。國泰航空行政總裁湯彥麟表示，甘泉航空的決定，影響了不少香港、倫敦 及溫哥華 旅客的行程，國泰會盡力提供協助。他表示，因為考慮到新學期即將開始，大批留學生須返英國 上課，國泰擬於周五及周日凌晨加開兩班往倫敦的特別航班。國泰會視乎情況在定期和加開航班中，預留部份座位予趕返英國上課的學生。湯彥麟希望這等應變措施，可協助更多受影響的學生及讓滯留乘客盡快回家。國泰會提供特別的票務安排，協助持有未來兩周（截至及包括本月廿三日止）確認機票的甘泉航空乘客。他們可購買國泰航空由香港前往倫敦或溫哥華單程2,500港元的經濟客位特惠機票（另加相關附加費），而由倫敦往香港的單程特惠機票為160英鎊，溫哥華往香港則為320加元。國泰設有特別查詢專線，持有甘泉航空機票的旅客，可致電2747 6181查詢特惠票務詳情，或瀏覽國泰網頁www.cathaypacific.com.hk了解情況。熱線已即時啟動，並24小時運作，直至另行通知為止。

News about the sold tickets

甘泉航空宣布臨時清盤 (明報) 04月 09日 星期三 02:35PM廉航甘泉航空 申請了臨時清盤，並委任畢馬威會計師行進行清盤，尋找新的投資者。甘泉所有航班停飛。甘泉舉行記者會交代申請臨時清盤事宜。首席行政總裁苗禮士表示，甘泉已委任畢馬威會計師行進行臨時清盤，接管了該航空公司，正尋找到新的買家，他有信心可找到新買家。苗禮士感謝員工及顧客在過去16個月來的支持。畢馬威會計師行代表杜艾迪表示，他尚未看到甘泉航空的收支情況，而據苗禮士稱，他們兩條往溫哥華及倫敦 的航線，有近99%的負載量，而甘泉約有近700名員工。至於已購買機票的乘客，可否取回款項，杜艾迪稱，這很難說，因為如甘泉正式清盤，公司將要對所月債權人負責，包括僱員、銀行及乘客。他表示，在召開記者會前，已要求公司關閉所有訂票服務，以免乘客購買機票。甘泉航空於2006年10月首航，當時因飛行路線問題，航程受到延誤，未能準時出發。有報道指出，甘泉由於低估經營開支，令公司已虧損逾10億。

[Sneeze Lam 0]

Cathay Pacific Special Offer to affected Oasis PAX

 

A Notice to Ticket Holders Stranded by Cancellation of Oasis Hong Kong Airlines Services

 

As a result of Oasis Hong Kong Airlines suspending all of its passenger services from today, Cathay Pacific is committed to helping as far as it can Oasis ticket holders who have confirmed bookings on its London and Vancouver routes in the coming two weeks.

 

To do so, we have made the following arrangements:

 

Availability of Flights:

We wish to emphasise that while we will do all we can to help affected Oasis passengers, our ability to do so is limited by the heavy current and forward bookings on Cathay Pacific flights, especially from Hong Kong to London.

 

Cathay Pacific will operate the following special additional flights to London with a priority to accommodate those schoolchildren with Oasis tickets and confirmed bookings returning to the United Kingdom at the end of the current term break:

 

Flight Number/Date Departure(local time) Arrival(local time)

 

CX2353/11April HKG 0120 LHR 0705

 

CX2353/13April HKG 0110 LHR 0655

 

Please note that these flights are still subject to government approval.

 

Special Fare:

A special one-way Economy Class fare at HKD2,500 (plus applicable charges see note 1) will be offered to eligible Oasis ticket holders on Hong Kong to London, or Hong Kong to Vancouver. This special fare is only available to affected Oasis passengers by calling the Cathay Pacific hotlines directly. Payment must be settled by credit cards only.

 

Eligibility:

Oasis ticket holders with confirmed bookings from 9 April to 23 April 2008 (both dates inclusive) on Hong Kong to London or Hong Kong to Vancouver. Proof of travel documents will be required.

 

Customer Hotline:

We have established a special hotline in Hong Kong 2747-6181 for Oasis passengers with confirmed bookings to obtain details of the arrangements we are putting in place. The Hong Kong hotline will be open 24 hours and available with immediate effect until further notice.

 

Please refer back to our website www.cathaypacific.com.hk for the latest information.

 

Notes:

1 Applicable charges include a fuel surcharge of HK$518 and airport /government charges of HK$153.

[Alan B. 5]

I feel sorry for the affected passengers and also employees for all the airlines that have ceased operations. There might be a few more airlines that will go bust in the near future. High fuel prices and a shaky US economy is going to be very difficult for all the airlines.

 

I think AirAsia X is going to find it very hard to survive with only 1 plane and 2 destinations at the moment.

[Mohd Azizul Ramli 2]

I think AirAsia X is going to find it very hard to survive with only 1 plane and 2 destinations at the moment.

I think I have to disagree with that. During the signing ceremony of the ex Air Canada CEO as D7's new shareholders, Azran Osman Rani told that D7 is already profitable by MYR 500,000.

 

I guess it's all back to the foundation of the business. D7 is smart because they stick firmly with their strategy fleet wise. A333 doesn't consume as much fuel as a B744. I think this is why it takes sometimes for D7 to finalise the aircrafts that they are going to use for their service to London.

[Gavin Andrew David 6]

I think I have to disagree with that. During the signing ceremony of the ex Air Canada CEO as D7's new shareholders, Azran Osman Rani told that D7 is already profitable by MYR 500,000.

 

I guess it's all back to the foundation of the business. D7 is smart because they stick firmly with their strategy fleet wise. A333 doesn't consume as much fuel as a B744. I think this is why it takes sometimes for D7 to finalise the aircrafts that they are going to use for their service to London.

 

Actually I believe , its not so much of the fuel consumption , but , the fuel burn per passenger . If you have a fully loaded jumbo flying the same route as a fully loaded 330 , i'm sure the jumbo will be more cost efficient . Its like comparing a minivan to a bus .