New HKG airline planned (another?)
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New HKG airline planned (another?)
From www.justplanes.com:
New airline for Hong Kong Feb 3
A former Dragonair executive is planning to launch a new low cost long haul airline in Hong Kong. Oasis Hong Kong Airlines plans to begin operations by the end of 2005 with service to Europe. Possible cities are Berlin, Cologne, Milan and Vienna. In 2006 the airline could add service to North America. Oasis plans to start operations with 3 aircraft, either Airbus A340-300s or Boeing 747-400s increasing to 5 within 2 years.
Is his real or just another wannabee?
New airline for Hong Kong Feb 3
A former Dragonair executive is planning to launch a new low cost long haul airline in Hong Kong. Oasis Hong Kong Airlines plans to begin operations by the end of 2005 with service to Europe. Possible cities are Berlin, Cologne, Milan and Vienna. In 2006 the airline could add service to North America. Oasis plans to start operations with 3 aircraft, either Airbus A340-300s or Boeing 747-400s increasing to 5 within 2 years.
Is his real or just another wannabee?
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Official it seems, post taken from Forbes http://www.forbes.com/business/energ...ap1801596.html
A former executive at Hong Kong's Dragonair plans to launch a new budget airline that will fly long-haul routes rather than the short hops preferred by other discount carriers, local media reported Thursday.
The new carrier, Oasis Hong Kong Airlines, plans to begin services to European cities by the end of 2005, with Berlin, Vienna, Cologne and Milan cited as possible locations, the South China Morning post said. Service to the North American market could come in 2006.
Steve Miller, a founder of Dragon Airlines Ltd., will serve as chief executive of the new carrier.
"It's been 20 years since I founded Dragonair, and I had never thought of starting another airline in Hong Kong until now because the timing wasn't right and the government's attitude wasn't right," Miller was quoted as saying by the Post. "But now is the time."
The airline plans to operate a small fleet of Boeing 747-400 or Airbus A340-300 aircraft, starting with three planes and expanding to five within two years, the paper reported.
The Ming Pao Daily News quoted Miller as saying that roundtrip fares to Europe would cost between 4,000 Hong Kong dollars (US$512, euro393) and HK$5,000 (US$641, euro492).
A former executive at Hong Kong's Dragonair plans to launch a new budget airline that will fly long-haul routes rather than the short hops preferred by other discount carriers, local media reported Thursday.
The new carrier, Oasis Hong Kong Airlines, plans to begin services to European cities by the end of 2005, with Berlin, Vienna, Cologne and Milan cited as possible locations, the South China Morning post said. Service to the North American market could come in 2006.
Steve Miller, a founder of Dragon Airlines Ltd., will serve as chief executive of the new carrier.
"It's been 20 years since I founded Dragonair, and I had never thought of starting another airline in Hong Kong until now because the timing wasn't right and the government's attitude wasn't right," Miller was quoted as saying by the Post. "But now is the time."
The airline plans to operate a small fleet of Boeing 747-400 or Airbus A340-300 aircraft, starting with three planes and expanding to five within two years, the paper reported.
The Ming Pao Daily News quoted Miller as saying that roundtrip fares to Europe would cost between 4,000 Hong Kong dollars (US$512, euro393) and HK$5,000 (US$641, euro492).
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I always wondered about Mr Miller as an aviation manager, rather than as a consultant. Now I know.
A major cost benefit of an LCC is utilisation. But on LH, can't get better utilisation than normal airlines. Maybe he'll have all economy seating, but on a A340 (or even B744) on long haul, seats can be restricted by payload, so unlikely to be significantly more seats than others. Fuel/ landing charges etc will be the same, so only big area of cost saving will be staff
Given that nonstop, full service carriers are selling at those prices (or lower) HKG-Europe - its going to be tough. As an LCC- doubt they will interline - so market is restricted to point to point. And none of those points strike me as being big to/from HK. LCC in shorthaul can expand traffic by being so cheap that people decide to hop over to Bangkok, or whereever, on a whim. But 4-6,000 HKD (and 12 hour flights) is still high enough to make people only go if they need to.
He's real, but the business idea is flawed from the get go.
A major cost benefit of an LCC is utilisation. But on LH, can't get better utilisation than normal airlines. Maybe he'll have all economy seating, but on a A340 (or even B744) on long haul, seats can be restricted by payload, so unlikely to be significantly more seats than others. Fuel/ landing charges etc will be the same, so only big area of cost saving will be staff
Given that nonstop, full service carriers are selling at those prices (or lower) HKG-Europe - its going to be tough. As an LCC- doubt they will interline - so market is restricted to point to point. And none of those points strike me as being big to/from HK. LCC in shorthaul can expand traffic by being so cheap that people decide to hop over to Bangkok, or whereever, on a whim. But 4-6,000 HKD (and 12 hour flights) is still high enough to make people only go if they need to.
He's real, but the business idea is flawed from the get go.
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Maybe Not?
Given the number 747-400 parked, I would venture that they could be had for a better than reasonable lease rate.
After all, if company (A) is making money, leasing company will charge premiums for lease rate.
If company (B) turns there leases over, because thay cant afford the aircraft, leasing company now has aircraft on hand without revenue to support them.
Company (C) steps in and negotiates affordable lease rate.
Asia buys everything, particularly HK. If the start up leases, they are ahead of the game in capital outlay and need not worry about maximising rate of return on asset.
It will no doubt be interesting to watch unfold, if they get a foot hold, it will be another obstacle in terms and conditions for the area
After all, if company (A) is making money, leasing company will charge premiums for lease rate.
If company (B) turns there leases over, because thay cant afford the aircraft, leasing company now has aircraft on hand without revenue to support them.
Company (C) steps in and negotiates affordable lease rate.
Asia buys everything, particularly HK. If the start up leases, they are ahead of the game in capital outlay and need not worry about maximising rate of return on asset.
It will no doubt be interesting to watch unfold, if they get a foot hold, it will be another obstacle in terms and conditions for the area
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Good luck to them, but I'm not sure about the long haul only model. I was just sent a $3,850 offer from Swire travel - CX to London and back, on the afternoon departure. This fare level to Europe is not unusual these days and Transpac, the Northwests and Continentals of this world often have pretty competitive fares.
It'll be interesting.
It'll be interesting.
