Saturday, March 19, 2011

Long Haul Flight To Vancouver

By Alberto Sapuki


CEO, Raymond Lee, announce in April 20008 that Oasis Hong Kong Airlines; announced the direct service airline went out of business, even though in 2006 Oasis Airlines embraced a fresh new approach in air travel. KPMG China was appointed to oversee liquidation. The airline flew scheduled services into London Gatwick and Vancouver Airports out of Hong Kong. Surprisingly in 2007 Oasis Hong Kong Airlines was voted "World's Leading New Airline" by the international Travel Industry.

At its success Oasis had added six weekly direct flights between Hong Kong and Vancouver, Canada. Great news for singles or families who wanted the finest in affordable long-haul travel. During its existence Oasis offered fares at 75 one-way. It had plans to develop frequent flights to European destinations and it improve its already growing Asia routes. Oasis attempted to position itself in contrast to the usual discount airliner multi-stop service.

Oasis Hong Kong entered the market place amidst a growing number of long-haul discount airlines like the Canadian low-cost transatlantic carrier Zoom Airlines, bankrupt in August 2008. Zoom Airlines in November 2006 (Flyglobespan.com), suffered the same fate as Oasis. This Canadian venture offered a schedule of three weekly Manchester to Toronto and Toronto Belfast, Cardiff, Glasgow, and London Gatwick. Zoom also offered service to London Stansted and Manchester (Flyglobespan).

Then there was another giant in the discount airline business, the grandfather (so to speak) Laker Airways "Skytrain" (out of business 1982). Discount airline Oasis Hong Kong offered travelers affordable scheduled direct flights between London (Gatwick) and Hong Kong. They continued to plan non-stop flights to favorite destinations across the world with more luxurious than offered by other low-cost air carriers with most flights offering air journeys with at least two stops in them.

The airline was very innovative but it appears that they could not compete in the volatile air traffic business given the wide fluctuation in airline fuel costs. They advertised prices that were consistently lower than the service by the the competition while attempting to offer luxury travel at discount ticket prices. The cost of simple luxuries given the on board passengers made it very difficult to compete given the cost. A one or two hour Airbus trip can operate at better profit than the cost of a discount six hour long haul flight to Vancouver or London from Hong Kong with meals and other small amenities.

Twenty eight low-cost airlines entered the market place in 2005 and Oasis encountered cut-throat competition. This made it difficult to provided the type of extra service envisioned globally. Oasis Hong Kong Airlines had attempted to forge significant flight changes in the international travel market place. Perhaps this airline will return to the marketplace at a later date in better economic times.




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