The new Hong Kong based airline will also offer businessOasis seats starting at just £470 plus tax, one way. Business class seats are fully reclining with a 60" seat pitch that is comparable to other major airlines.


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Budget long-haul airline Oasis to take off from Hong Kong

Copyright Observer News

HONG KONG, October 20  

It’s cheap as chips, feeds you hot food, provides 14 entertainment channels with a personal video screen, and you don’t have to transit in far-flung airports.
That, at least, is what’s promised for economy class travelers with Oasis Hong Kong Airlines, the first discount carrier to fly between Hong Kong and London. The startup airline is stirring budget travelers and competitors with its combination of long-haul, low-cost flights and full services.
Oasis, which is scheduled to begin flying its first passengers Wednesday, is charging fares as low as HK$1,000 (US$130; euro105) before taxes for a one-way direct flight to London — one-third of the lowest price currently available. Flying business class starts at HK$6,600 (US$850; euro675) one-way.
Those are thrillingly low prices, but Oasis says it doesn’t combine them with the no-frills approach taken by other budget airlines. Economy travelers will get free in-flight entertainment and two hot meals with the option of paying for a meal upgrade.
It’s an unusual business model, but chief executive Stephen Miller is confident it will work.
‘‘We’re starting a new breed of airline,’’ says Miller, a veteran of the aviation industry. Oasis is different from easyJet, Ryanair or Malaysia’s AirAsia not only because it offers full service but also because it has no plans to fly regional short-haul, he says.
‘‘We cannot be compared with those, although we’re taking the best of the low-cost model that can be transferred to the long-haul,’’ Miller says.
Oasis, which owns two Boeing 747-400s, will fly to London’s Gatwick airport four times a week in its first month, expanding to daily flights in November.
It also plans to fly direct to Oakland, California — which like Gatwick is a hub for low-cost carriers — once it has bought three more aircraft in 2007. European cities such as Berlin and Milan are other likely destinations.
Flying only long haul allows the carrier to get the best use of its aircraft and keep productivity high, Miller says. That, combined with cost-cutting measures such as outsourcing catering and call centers, will be the key to Oasis’s low prices, he says.
Miller, who founded Hong Kong’s Dragonair, says he came up with the idea for Oasis when he realized there was a shortage of affordable direct flights to Europe and that large numbers of passengers are traveling to Europe via stops like Dubai and Helsinki.
Oasis was born when Miller approached pastor and property businessman Raymond Lee, who with his wife and two others invested HK$800 million in the airline.
‘‘We feel there is a niche for the service we’re trying to offer,’’ Miller says. The plan is simple: to attract budget travelers already flying indirect long-haul routes to take a direct flight at the same price.
‘‘There’s not a huge amount of risk there, if we simply transfer them from the indirect to the direct service,’’ he says.
The initial response in Britain and in Hong Kong has been encouraging; Oasis has already sold 19,000 tickets for flights up to April 2007, Miller says.
The four other carriers flying direct between Hong Kong and London are feeling the heat. Some have slashed fares, but none offers anything as cheap as Oasis — Qantas lowered its round-trip fares to HK$3,550 (US$462; euro373), while Cathay Pacific Airways is offering a HK$4,850 (US$630; euro509) round-trip.
Cathay Pacific spokeswoman Maria Yu declined to comment on whether Oasis was a threat.
‘‘The competition for this route has always been intense, and ticket prices have been going progressively lower,’’ Yu said. ‘‘But it’s most important for our clients to feel our service is worth it.’’
Virgin Atlantic also cut its fares.
‘‘We can’t go to that kind of price level,’’ said Virgin Atlantic public relations executive Kalo Man. ‘‘We already have a very stable market share in this route. But of course we’ll watch how the market reacts to Oasis.’’
Miller says Oasis will keep at least one in 10 of all economy class seats at HK$1,000 in its first year. But he made no guarantees for business-class fares, and won’t rule out future price hikes.
‘‘We’re determined to be a low-fare airline offering the lowest fares in the market,’’ he says. ‘‘But in order to be a good airline we have to be profitable. So there’s a balance.’’

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HK government probing Oasis flight delay

HONG KONG, Oct. 26 

Hong Kong’s Civil Aviation Department said Thursday it is seeking further information from Oasis Hong Kong Airlines about the delay of its inaugural flight.

 It has also reminded the airline to take all necessary measuresto prevent a recurrence, the department said.

 In response to media inquiries on the incident, the department said it had provided all possible assistance to the airline in obtaining permission to fly in Russian airspace.

 Oasis Airlines, the first long-haul budget airline in the world,canceled its maiden flight to London after six hours of delay Wednesday because of the Russia’s refusal of overflight rights.

 The company said it got the approval to fly over Russian airspace around 8:45 p.m. just after they evacuating some 300 passengers and send them to their home or hotel. The flight eventually took off at 1:19 p.m. Thursday from Hong Kong International Airport.

 According to international practice, the airline has the responsibility to obtain prior permission from aviation authorities to overfly territories enroute, and to land at the destination.

 Passengers complained about the one-day delay and some passengers who has booked flights from London to other cities saidtheir schedule was severely affected, though each passenger got a 500 HK dollars compensation and a free flight ticket.

 The department said airlines must take full responsibility to fulfill their obligations to passengers. Should operations be disrupted by unforeseen circumstances airlines must keep passengers informed as early as possible and make alternative arrangements to minimize inconvenience to them.