Shaky Hong Kong airline take off, as O8-700 cancelled.

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SN30952
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Shaky Hong Kong airline take off, as O8-700 cancelled.

Post by SN30952 »

The world's first budget long-haul inaugural cancelled. courtesy of the Russians....
Oasis' B747-400 was air bound Thursday for London-Gatwick just after 01.00PM for its... inaugural.
The day before the almost 300 passengers of that O8-700 flight boarded the plane already to wait 6 hours to learn that the Russians had taken away permission for the plane to fly into its airspace.

The inaugural flight was planned for 1:00 pm* Wednesday, but a last-minute refusal of overflight rights by Russia forced the plane to sit on the tarmac, postponing the world's first budget long-haulin augural by 24H. Oasis spared no expense in making sure its first passengers were compensated for their ordeal: The delayed passengers were offered money, a flight on another airline or another Oasis ticket. Overseas travellers were also given hotel rooms and local flyers were provided transport home. Passengers on Wednesday's canceled flight were being offered HK$500 (US$63; €50.08 ) and a free roundtrip ticket as compensation.

Embarrassed officials at Oasis Hong Kong Airlines insisted the problem wasn't their fault, blaming Russia for revoking permission to fly over its territory.

Oasis Chairman Raymond Lee told reporters that Russia reissued its approval late Wednesday, just two hours after all the passengers had been sent home or to hotels.

"We've been approved from a very responsible and reliable source that we can definitely fly through the Moscow airspace today," Lee said. "Maybe some bureaucratic error," or "maybe some mistakes that led to their revoking of that permission" was behind the delay, Lee said.
Lee said the airline is seeking an explanation from Russian authorities and was exploring an alternate route to London. (Over Afghanistan, as do Taiwanese airlines?)
Lee also said the airline has also obtained license to fly to Chicago, Milan, Berlin and Cologne/Bonn. It is filing applications to operate to Vancouver, Toronto, Zurich, Paris, New York and Los Angeles. He has opened talks with easyJet and Ryanair, Germanwings, Southwest Airlines and JetBlue.

World's first long-haul budget airline cancels inaugural HK flight.

BBC: HK budget airline stays grounded]HK budget airline stays grounded. Follow also the Will there be 99p flights to New York? link on same page.

Oasis boasts an average of 500 bookings daily.

(*0500 GMT)
Note: As an inaugural is a once in a life happening, this item is taken out separately of Oasis forum, so it will retrieved more easy, on a later occasion. :wink:

Mercutio
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Post by Mercutio »

They got delayed for 24 hours by Moscow's incompetence but now they have successfully completed their first flight from Hong Kong to London. We love you Oasis.... :)

EBAW_flyer
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Post by EBAW_flyer »

I really don't get this actually. I looked up a fare LGW-HKG-LGW for end november and return beginning december and came on £260 wich is roughly 400 euros all in. The fare includes a meal and even personal IFE (you do have to pay for your drinks). How do they do this?

Mercutio
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Post by Mercutio »

^ Don't ask questions. Just book while you can.... ;)

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CX
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Post by CX »

EBAW_flyer wrote:I really don't get this actually. I looked up a fare LGW-HKG-LGW for end november and return beginning december and came on £260 wich is roughly 400 euros all in. The fare includes a meal and even personal IFE (you do have to pay for your drinks). How do they do this?
AND HKG is surely one of the most expensive place to park your plane.

Mercutio
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Post by Mercutio »

Oasis are back on timetable. There was a two hour delay in their departure from London Gatwick owing to the arrival from Hong Kong being a full 24 hours late but they pulled through and we can say that £261 non-stop return fares (inc taxes) to Asia are now with us! :)
http://news.bbc.co.uk/1/hi/business/6090168.stm

Mercutio
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Post by Mercutio »

Does anyone know what the flight path change is? Apparently they already got permission to fly over Russia so it can't be that....
http://www.oasishongkong.com/gb/en/home.aspx


Temporary changes to flight arrival times

Oasis flight times have been temporarily affected by a flight path change. Therefore, until further notice, all flights between London and Hong Kong will arrive up to 1 hour 10 minutes later than our currently published schedules. Departure times for all flights remain unchanged. We apologise for the inconvenience and recommend that passengers making connecting flight bookings make sufficient allowance for this temporary change in flight time.

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fokker_f27
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Post by fokker_f27 »

Is this really the world's first LH budget airline? PeoplExpress used to operate a few 747s on transatlantic services.
The most sexy girl in the sky: The Sud-Est Caravelle 12.

Mercutio
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Post by Mercutio »

^ Zoom is surely a long-haul budget airline too.

SN30952
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LCLH...

Post by SN30952 »

Mercutio wrote:^ Zoom is surely a long-haul budget airline too.
I want to read facts, pls
What are, were the budget long haul carriers?
What were their lines? O/D's please.

What are, were the low cost long haul carriers?
What were their lines? O/D's please.

Jetstar Airways, the Australian budget airline is knocking off single tickets that start from US$149 for Ho Chi Minh City*-Sydney service the carrier will begin from late next month.
That's the low cost long haul, but not the first?

*SGN = TANSONNHAT INTERNATIONAL Airport

Read also Low-Cost, Long-Haul -- A Long Shot?
"There is no long haul model for low fares airlines. It just doesn't work," McVitie said.
Doug McVitie, is a France-based aviation consultant and former Airbus employee, who seems to copy my comment I gave on the 747 HKG-rotation costs by O8. See date in the other Oasis forum @ LZ.

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lastrow
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Post by lastrow »

I think Laker did some London-New York flights as well and was also known for their "budget" prices. I flew on a Laker DC-10 once! :-D

regarding the oasis incident: Have anyone read the conspiracy theory on a.net? there are some people arguing that the British might have asked the Russians for this tiny military operation taking place just this day in oder to protect BA? (because it was mentioned that a Russian military maneuver was the reason for the withdrawn overfly rights) I found this story very funny and it would match the politics of Mr. Eden :D - of course not matching today's world politics conditions.

-lr.

Mercutio
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Post by Mercutio »

Mercutio wrote:Does anyone know what the flight path change is? Apparently they already got permission to fly over Russia so it can't be that....
http://www.oasishongkong.com/gb/en/home.aspx


Temporary changes to flight arrival times

Oasis flight times have been temporarily affected by a flight path change. Therefore, until further notice, all flights between London and Hong Kong will arrive up to 1 hour 10 minutes later than our currently published schedules. Departure times for all flights remain unchanged. We apologise for the inconvenience and recommend that passengers making connecting flight bookings make sufficient allowance for this temporary change in flight time.
I can answer my own question now. They still don't have permission to fly over Russia:

A long way to go

29 October 2006
South China Morning Post

The delay of its maiden flight last week suggests that Hong Kong's newest carrier is flying on business principles yet to be fully tested. Can an airline be both budget and long-haul?

On paper, the concept behind creating a low-fare, long-haul-only airline seemed simple enough. People want direct, non-stop flights to long-haul destinations but prefer the generally lower prices offered on routes that include one or two stops along the way. By marrying the two, local start-up Oasis Hong Kong Airlines, its backers believe, will be primed to capitalise on this market.

Unfortunately, the second-hand Singapore Airlines 747-400 that is currently being flown - half of the airline's fleet of two - was grounded on Wednesday for its maiden flight to London's Gatwick Airport after permission to fly through Russian airspace was denied at the last minute. The flight took off the next day and arrived at Gatwick on Friday, although the return leg passed over the Middle East as Russian authorities had granted permission only for the maiden flight.

"That is a complexity that we do have as a long-haul carrier. If you're flying in the US, you don't need to have overflight rights for anywhere else. That's a complexity we have, but it's not one that is unresolvable," Oasis commercial director Kenneth Chad said.

Whereas carriers in the US and Europe ply their trades in single markets, Asia's budget start-ups face substantial regulatory hurdles.

"The biggest issue here is international traffic rights," said Derek Sadubin, general manager of the Sydney-based Centre for Asia Pacific Aviation. "But we have been seeing a gradual liberalisation of air services agreements across Asia."

Traditionally, the bilateral rights for any two countries' most lucrative routes have been awarded to their flag carriers; in many cases, they are the sole airlines within those countries. But governments, eager to maintain their country's economic momentum, are under increasing pressure to open the biggest travel centres to more competition.

"There are still some pockets of protectionism, but, by and large, we are seeing greater liberalisation," Mr Sadubin said. And that looks set to continue. The Association of Southeast Asian Nations recently committed to lift by 2008 restrictions on the number of flights allowed between the capital cities of its 10 member nations.

The number of seats offered by low-cost carriers in Asia last month jumped 63 per cent as the aggressive budget brigade mounted an additional 17,000 flights compared with last year, according to OAG Worldwide, a travel and transport information firm. They now account for 9 per cent of the seats available in the region, up from 1 per cent just five years ago. One in 10 scheduled flights will be offered by budget carriers this year, compared with 6 per cent last year.

However, Oasis' inaugural flight notwithstanding, the budget long-haul business model remains untested. Investors have been slow to warm to it because the traditional wisdom has been that budget carriers need to fly short sectors with single-aisle aircraft to minimise turnaround times and offer no-frills service.

Long-haul flights, for example, require food to be served.

"If we were just economy class, it would be very difficult for us to compete, but we're not," Mr Chad said.

"What we see is, in fact, a convergence to what we are. We are easyJet meets Emirates. We take the best of both models. We fly an asset where we get very high productivity - we're only long haul. That's what the short-haul carriers are going for."

Oasis will introduce other revenue streams in the near future, such as charging for seat selection, Mr Chad said.

Over longer distances, selling a high proportion of seats is critical.

"If you're flying an empty seat, that seat remains empty for a longer time and distance," Mr Sadubin said.

Mr Chad agrees, which is why Oasis is trying to get its product up and running and expand its fleet as quickly as possible.

"We're aiming for high utilisation. But critics who really understand the industry will say that you've got only one aircraft now, and only two aircraft later, and you're going to fly these aircraft only on a daily service to Gatwick. If you do the calculation, you're not getting that super-high utilisation you're talking about. Now I accept that entirely," Mr Chad said.

"But we don't do things without having a reason. In the beginning, we want to get into this industry, get the product going ... when we get our system running, then we'll increase utilisation. But to do that, we necessarily need more aircraft, so we are aggressively looking for more aircraft, and it's a challenging exercise."

Major international carriers, like Singapore Airlines, that have placed orders for the delayed Airbus A380 aircraft are now holding on to their fleet of 747-400s rather than releasing them to budget airlines like Oasis. The 747-400 is preferred for its high number of seats, allowing for greater economies of scale, Mr Chad said. A two-class configuration can seat a maximum of 524 passengers.

"The Oasis model is untested as yet," airline industry practitioner Gilbert Chow Wun-cheung said. "But I think budget airlines are here to stay."

Expressing optimism, Travel Industry Council executive director Joseph Tung Yao-chung said he was not deterred by the last-minute hiccup.

"The prospect can be good - it all depends on how it operates. The long-haul [budget] flight is rare in Hong Kong and it can offer alternative choices to passengers," Mr Tung said. "Now Oasis offers only a Hong Kong to London flight. I believe some passengers will find the offer attractive."

Susanna Lau Mei-sze, general manager of Hong Tai Travel, said it had a 36-member tour, including the guide, joining the maiden Oasis flight. Six of them dropped out after the flight was delayed.

"We are in a deal with Oasis that projects our co-operation as a long-term one. They also said they would start a North American destination and we are also interested in it," Ms Lau said.

Oasis will fly to Oakland in San Francisco early next year. Its flights to Gatwick will increase from four a week to a daily service starting from November 25. Other destinations will include Cologne/Bonn, Milan and Berlin in Europe, and Chicago. Applications to operate routes to Vancouver, Toronto, Zurich, Paris, New York and Los Angeles have been filed.

Jetstar International, Qantas Airway's answer to the budget phenomenon, has watched Oasis's launch with keen interest. From November 23, Jetstar will begin rolling out low-cost wide-body services from Sydney, Melbourne and Brisbane to Bali, Phuket, Bangkok, Ho Chi Minh City and Osaka.
Last edited by Mercutio on 29 Oct 2006, 14:28, edited 2 times in total.

SN30952
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Post by SN30952 »

Mercutio wrote:although the return leg passed over the Middle East as Russian authorities had granted permission only for the maiden flight.
as I said before:
exploring an alternate route to London. (Over Afghanistan, as do Taiwanese airlines?)

Mercutio
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Post by Mercutio »

They had problems again yesterday. The following message appeared on their website:

Oasis Hong Kong Airlines

Flight O8 707/October 29 and Flight O8 700/ October 31


Hong Kong, October 30, 2006

Due to an operational delay of Oasis Hong Kong Airlines’ flight O8 707 at London Gatwick airport on 29 October, the flight has been rescheduled to depart London Gatwick on 30 October at 1200 hours (UK time) with expected arrival time in Hong Kong at 0830 hours (Hong Kong time) on 31 October.

Subsequently, due to the incoming flight delay, flight O8 700 from Hong Kong to London originally scheduled for 0130 hours (Hong Kong time) on 31 October has been rescheduled to the new timing below:

O8 700 on 31 October

Estimated departure time from Hong Kong 10.00 hours (Hong Kong time)
Estimated arrival time at London Gatwick 16.00 hours (UK time)
Passengers booked on flight O8 700 on 31 October are advised to call our ground operations hotline 2216-1088 for most up-to-date flight information.

We sincerely apologise for the inconvenience caused and thank all our passengers for their patience and understanding."



I really hope they can resolve these problems. They must be forking out extra on the aviation fuel flying over the Middle East and of course these delays are forcing them to pay out on hotels and other compensation. Given that their business model relies of razor thin margins and that some analysts doubt the viability of their entire model you have to wonder for their future. However I for one wish them the best of success. :)

b-west

Post by b-west »

Maybe things will improve when the second 747 arrives. I do hope they don't go bust too fast. I was planning on flying them late 2007. A trip BRU - LGW - HKG - SIN and back would cost me 1000 euro's for 2 persons. Crazy... :)

Mercutio
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Post by Mercutio »

More turbulence for new Hong Kong carrier

HONG KONG, Oct 31, 2006 (AFP) - Hong Kong's budget airline Oasis was flying through more trouble Tuesday after it had to delay a flight from London for 16 hours -- less than a week after its maiden voyage was grounded for a day.

The back-up meant its next flight out of Hong Kong was also put back -- the third major delay in the first six flights for Oasis, which is billing itself as the world's first low-cost, long-haul service.

The latest problem arose when a flight due to take off from London's Gatwick airport on Sunday evening instead only left Britain on Monday afternoon.

"There was a huge traffic back-up at Gatwick that forced the delay of the Sunday flight," said an Oasis spokesman.

A report in the English-language South China Morning Post said trouble with a truck towing the plane from the gate at Gatwick, as well as air traffic congestion, had forced it to miss its Sunday take-off slot.

By the time the plane was ready to go, the airport's curfew time had elapsed and air traffic control closed the runways, the report said.

Flight 8707 eventually took off mid-day Monday and landed in Hong Kong about 8:30 am Tuesday.

As Oasis has just one aeroplane, that forced the cancellation until 10:00 am of its 1:00 am flight Tuesday.

The airline says a second plane is due to be delivered sometime next month, when the service hopes to move to one flight each day.

A passenger on Sunday's flight from Gatwick, Chris Chinnery, was quoted by the Post as saying the plane had moved halfway down the taxi-way when it turned off and went back to the gate.

The latest delays follow an embarrassing launch for the airline when its maiden flight last week was held back for a day after Russian authorities at the last minute refused to grant the airline overflight rights.

The near-full plane with more than 300 passengers, including Oasis chairman and Raymond Chan and chief executive Stephen Miller, was forced to wait on the tarmac for six hours before the flight was cancelled.

It eventually took off on Thursday after Russia granted once-only overflight rights.

According to Tuesday's Asian edition of the Financial Times, the airline has since had to take a longer route to avoid Russia, adding an hour and 13 minutes flying time and bumping up already pared down costs.

The report added that airline bosses were due to meet Russian authorities to discuss the issue next week.

Oasis flies four days a week between Hong Kong and London, with introductory one-way prices as low as 1,000 Hong Kong (128 US) dollars.

regi
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Post by regi »

smells like Phuket Air.

SN30952
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Post by SN30952 »

regi wrote:smells like Phuket Air.
Kilgore: Smell that? You smell that?
Lance: What?
Kilgore: Nxxxx, son. Nothing in the world smells like that. ....The smell, you know that gasoline smell....

Mercutio
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Post by Mercutio »

Great news. The last of their initial problems has now been solved. I will be flying to Hong Kong with them in two weeks time. :)


Oasis gets clearance for Russian airspace
22 November 2006
South China Morning Post

Hong Kong's first long-haul budget carrier has been granted approval to fly through Russian airspace on a permanent basis, the airline's boss, Raymond Lee Cho-min, said yesterday.

The company's inaugural flight was delayed for 24 hours last month after a last-minute withdrawal of permission to fly over Russia.

The Oasis Airlines chairman also said its second flight to London would take off on Saturday, on the first trip undertaken by its second Boeing 747.

The latest arrangement with Russia comes as the company plans to launch an initial public offering within one to two years to expand its air fleet.

The company plans to buy or lease 25 planes within four to five years, with four to six planes being acquired each year.

"We hope to raise around $800 million {hellip} some people said that they expected we could achieve this target in February next year," Mr Lee said.

He said nine investment banks had expressed interest in helping the company launch the IPO.

But he said priority would be given to Hong Kong investors.

As regards the airline's right to enter Russian airspace, Mr Lee said: "They said that they would give us a permanent right [to enter their air space] starting from December 1. In the meantime, we can enter their airspace from November 20 to 30 under a temporary arrangement."

He said that since the setback on its first takeoff, the number of passengers booking for flights to London had increased steadily.

"Initially, three-fourths of the passengers booking our flight were coming to Hong Kong, but now the proportion between those heading to Hong Kong and those going to London are 50-50," he said.

The company now plans to develop new destinations such as Oakland, California, Vancouver and Germany.

Mr Lee said he hoped their first flight to Oakland would take place in April.

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