Oasis Hong Kong rumoured to stop flights

[Mohd Azizul Ramli 2]

Yes, that rate per passenger is what I meant by the sentence. Thank you Gavin.

 

The case for O8 was that an investor(s) pulled out while in D7, more investors are coming in (the Japanese, Bahraini and Canadian guys).

 

But D7 should take this case seriously because O8 has became some sort of a precedent that a long haul LCC can fail after just 2 years of operation. Given the present supports and enthusiasms, the correct business strategies (fleet, pricing, product offering, marketing, fuel hedging etc), I hope D7 will succeed in bracing the storm.

Edited April 9, 2008 by Mohd Azizul Ramli

[S V Choong 4]

Yes, that rate per passenger is what I meant by the sentence. Thank you Gavin.

 

The case for O8 was that an investor(s) pulled out while in D7, more investors are coming in (the Japanese, Bahraini and Canadian guys).

 

But D7 should take this case seriously because O8 has became some sort of a precedent that a long haul LCC can fail after just 2 years of operation. Given the present supports and enthusiasms, the correct business strategies (fleet, pricing, product offering, marketing, fuel hedging etc), I hope D7 will succeed in bracing the storm.

 

Oh well, may be D7 can gobble up O8 through a cheap deal. They have a chance now

 

Air Asia Hong Kong in the making? Hmm... <_>

Edited April 9, 2008 by S V Choong

[Alan B. 5]

My point is that D7 does not at the moment have the economy of scale with just 2 destinations i.e. Oasis. So it would be more exposed to the volatile economic climate at the moment. Making a profit this month is going to be harder next month.

 

Not that Skybus is the same as D7 but it had a huge capital funding of US$160 million and they still failed.

 

Please also note, this does not mean I wish for D7 or any other airline to fail. It is just a "fear" that I feel about the state of the world economy as a whole and the aviation sector in particular.

[Pieter C. 5]

Once again, it's sad to see them go

 

How did CX get slots for these flights (CX2353/11April HKG 0120 LHR 0705; CX2353/13April HKG 0110 LHR 0655) at busy LHR ?

 

Good to see them help-out the Oasis customers ...

[Mohd Azizul Ramli 2]

Oh well, may be D7 can gobble up O8 through a cheap deal. They have a chance now.

 

Air Asia Hong Kong in the making? Hmm...

The price may be cheap, perhaps only HK$ 1.00 to buy over the company, but with all its liabilities tagged along with it. I think it was mentioned earlier how much debts O8 is currently owing their creditors. Despite that, Hainan Airlines has expressed interests.

 

I don't this this entity excites AirAsia group merely due to its condition. An earlier case of Adam Air can exhibit this. AirAsia would be the first company to offer to buy back Adam Air from the pulled-out shareholder. Adam Air has an extensive routes in 35 destinations in Indonesia, more than what QZ is currently having and there was an opportunity (for QZ to take over the ship). But they didn't, knowing the liabilities that Adam Air is having that is not worth their investment.

 

But I prefer the name AirAsia Oasis more (to emphasize that AirAsia bought Oasis).

[Sneeze Lam 0]

How did CX get slots for these flights (CX2353/11April HKG 0120 LHR 0705; CX2353/13April HKG 0110 LHR 0655) at busy LHR ?

 

Apply as adhoc?

[Radzi 2]

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

 

Air Asia X however ...

You'd be surprised on who get the better backups from certain individuals in the government.

 

On one hand, sad to see Oasis gone, but then again, I much prefer the highly regulated airline industries of the 70s. Expensive but viewed with respect.

[Mohd Azizul Ramli 2]

This may soon gone. Note the bankruptcy announcement.

 

[Azri M. 0]

Aloha.

ATA.

 

And more I can't recall right now.

 

Another one just ceased its operation end of March 2008, Freedom Air, an LCC from Air New Zealand.

[Pieter C. 5]

Apply as adhoc?

 

That's extremely difficult for LHR

Would have thought, CX would have used the LGW slots (ex Oasis); good for CX they succeeded

 

[Radzi 2]

Any idea why Oasis went under? Cost too high or revenue too low? How was their load?

[Pieter C. 5]

Cathay Pacific CEO Has No Interest In Oasis Deal

 

April 10, 2008

Hong Kong's Cathay Pacific Airways is not interested in acquiring budget carrier Oasis Hong Kong Airlines, Cathay Pacific's chief executive said on Wednesday.

 

Oasis said earlier on Wednesday that 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.

 

"We have no interest in the business model that they've got," Cathay Pacific Chief Executive Tony Tyler said on the sidelines of a news conference in Los Angeles.

 

Oasis, which took off in October 2006, said in January 2007 that it planned to go public on the Hong Kong stock market by late 2009, but the carrier is now looking for investors to acquire the company or buy its assets.

 

Tyler said he never believed Oasis would be successful.

 

Jet fuel prices -- which often account for the biggest share of airlines' costs -- have nearly doubled since Oasis began operations to nearly USD$140 a barrel, putting pressure on carriers to raise fares so they can shore up profits and maintain payments on newly acquired aircraft.

 

Tyler said all airlines, including Cathay Pacific, have been pummeled by rising fuel prices.

 

"We are fortunate that our top line, our revenue line, has been growing very well," the CEO said.

 

Tyler said the company's increase this year of flights to India -- expected to reach 35 a week by June -- is coming at an opportune time.

 

(Reuters)

 

Hope this answers your query a bit, captain

 

[Sneeze Lam 0]

I am really sad and disappointed with such arrangement to their crews shipped oversea!!!

 

Oasis staff stranded in Africa

 

 

2008-04-10 HKT 17:16

More than a dozen staff of the collapsed budget airline, Oasis, are reported to be stranded in the southern African country of Namibia. Family members and trade unionists are holding talks with the Labour Department on how to bring them back to Hong Kong. It's not clear why they are in Namibia, but reports say they might have been working on a charter flight.

 

 

Source: RTHK ONLINE NEWS

[S V Choong 4]

I am really sad and disappointed with such arrangement to their crews shipped oversea!!!

 

[Mohd Azizul Ramli 2]

Aviation sector struggling with rising fuel costs

The Star, Friday April 11, 2008

 

By LEONG HUNG YEE

 

PETALING JAYA: While some airlines struggle to cope with record oil prices and weakening economic growth, others have been forced to halt their operations. The latest casualty, Oasis Hong Kong Airlines, was the fourth carrier to shut down operations worldwide in less than two weeks after a 75% increase in fuel prices over the past year.

 

Analysts said fuel was one of the main cost components (about 30% of total operating costs) of the aviation industry. They said the uncertainty pertaining to the direction of oil prices going forward would continue to drag the share price performance of aviation stocks.

 

Oasis, which began flying in October 2006, ceased operations on Tuesday, stranding thousands of passengers in Hong Kong, Britain and Canada. Chairman and founder Raymond Lee told Bloomberg that surging oil prices had affected the airline severely. The long-haul low-cost carrier (LCC) said it had to stop flying because of higher-than-expected costs for fuel and aircraft. Oasis had applied to Hong Kong courts for a voluntary liquidation and was seeking new investors, Financial Times reported yesterday, citing its chief executive Stephen Miller.

 

According to the report, at least five US-based airlines, including Skybus, Aloha Airlines and ATA, have collapsed in recent weeks, suffering the same fate as Maxjet Airways, which went into liquidation in December. In Europe, Alitalia Airlines was reported to be teetering on the edge of bankruptcy and several leading airlines have issued profit warnings.

 

OSK Research Sdn Bhd analyst Chris Eng maintained that oil prices were detrimental predominantly to airlines. “A US$1 per barrel difference will hit Malaysia Airlines by RM46mil in profits and AirAsia Bhd by RM10mil in profits,” he told StarBiz, adding that OSK Research had one of the most conservative views in the industry with an average of US$100 per barrel.

 

Eng said AirAsia X Sdn Bhd had a slightly different business model compared with Oasis as the former provided fewer frills and was currently not flying long haul. It has medium-haul flights to China and Australia.

 

“We think AirAsia X’s decision to delay its London flights till 2009 (owing to a shortage of A340s) is the right one due to high oil prices. We still think AirAsia X has the best chance of succeeding as a long-haul LCC although we are not certain anyone will succeed at all,” Eng said.

 

AirAsia X chief executive officer Azran Osman-Rani told Financial Times that “the Oasis example reinforces our view that a sustainable long-haul LCC model must stick to the core principles of high-aircraft utilisation and high-seat density to achieve a sustainable cost position.” Meanwhile, AirAsia will start charging fees for checked-in baggage to cover higher costs.

[Sneeze Lam 0]

Aviation sector struggling with rising fuel costs

AirAsia will start charging fees for checked-in baggage to cover higher costs.

 

 

This may stop my choice of flying AK.

[Naim 6]

http://www.thestandard.com.hk/news_detail....&con_type=1

 

Flawed model led to airline's demise

 

Nishika Patel and BenjaminScent

 

Friday, April 11, 2008

 

The demise of Oasis stemmed from a flawed business model allocating too many seats for the premium class, according to the Centre for Asia Pacific Aviation.

 

Oasis marked out 22 percent of its total seating capacity to 81 business seats in a generous layout, whereas Malaysia's AirAsia X will only set aside 7 percent or 28 seats in its new planes and Australia's Jetstar allocates 12.5 percent to business-class seating.

 

"The Oasis example reinforces our view that a sustainable low-cost, long-haul airline model must stick to core principles of high aircraft utilization and high seat density to achieve a sustainable cost position," said AirAsia X chief executive Azran Osman- Rani.

 

Hong Kong's lack of a domestic market also makes it difficult to operate a budget airline, according to Law Cheung-kwok, associate director of Chinese University's Aviation Policy and Research Center. The successful Southwest Airlines relies on a huge domestic market in the United States, Law said.

 

The Hong Kong budget carrier's demise prompted Goldman Sachs to slash its target price for market leader Cathay Pacific Airways (0293) by 8.8 percent to HK$13.50, saying Cathay will also feel the pinch of soaring jet fuel prices.

 

The liquidation of Oasis "highlights the difficult operating environment Cathay Pacific is in," said Goldman Sachs analyst Matthew Chan.

 

Shares of Cathay dropped 2.3 percent to HK$15.36. Cathay is more exposed to high fuel prices than regional rival Singapore Airlines, according to Chan. Cathay will hedge 37 percent of its fuel this year, compared to SIA's 50 percent, he said.

 

===

 

http://peanuts.aero/low_cost_airline_news/...e+bid+-+report+

 

Oasis Hong Kong chairman derails Hainan Airlines parent's rescue bid - report

 

HONG KONG (XFN-ASIA) - An attempt by Hainan Airlines parent HNA Group to rescue Oasis Airlines from collapse has been derailed by Oasis chairman Raymond Lee, the South China Morning Post reported without identifying its source.

 

It said HNA Group's rescue bid failed after it discovered that Lee, who held about 60 pct of Oasis, had pledged his shares as collateral for a personal loan.

 

It was not clear how many of the shares he had pledged.

 

Following the collapse of HNA Group's rescue bid, Oasis filed for provisional liquidation, affecting some 30,000 ticket-holders and leaving some 700 staff with an uncertain future.

 

Oasis reportedly chalked up losses of some 1.0 bln hkd since it started operations in October 2006.

 

© Centre for Asia Pacific Aviation. Date posted:11-Apr-08

Edited April 11, 2008 by Naim

[S V Choong 4]

Not sure how accurate this news is, but there is a rumour that one of Mr. Li Ka Shing's (a HK tycoon) company, Cheung Kong Holdings in Hong Kong, is interested in purchasing and rescuing Oasis HK.

 

http://hk.news.yahoo.com/fc/news_fc_hkoasis.html

 

李嘉誠的旗艦公司長江實業，有意擔當「白武士」，出手拯救甘泉航空 。知情人士透露，已接觸甘泉的臨時清盤人，尋求收購...

Edited April 14, 2008 by S V Choong

[Isaac 0]

Not sure how accurate this news is, but there is a rumour that one of Mr. Li Ka Shing's (a HK tycoon) company, Cheung Kong Holdings in Hong Kong, is interested in purchasing and rescuing Oasis HK.

If i'm not mistaken, the Li family also holds some shares in one of the Canadian carriers right ? Or that deal didn't go through ?

 

 

[Sneeze Lam 0]

If i'm not mistaken, the Li family also holds some shares in one of the Canadian carriers right ? Or that deal didn't go through ?

 

 

AFAIK, the CAN government banded the acquisitions because Li's son is not a Canadian.

 

Can someone confirm?

[Derek Siu 0]

quoted from HK yahoo news: (sorry its in chinese)

而且長實昨日早上亦已發出聲明，指「長實從沒有提出任何收購甘泉航空的方案，現時亦沒有就有關事項進行研究。」

 

Basically means that Mr. Li Ka Shing's (a HK tycoon) company havn't put forward any plans (on buying Oasis) yet , and there isn't any department are looking into this project.