some people said OASIS HK might shut down tomorrow
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The 9th floor celebrating with the finest champaigne and cuban cigars - O8 lawyers at the Highcourts at this hour filling for liquidation order.
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the management page has been removed
http://www.oasishongkong.com/error/4...utus/team.aspx
Its sad, cant believe how difficult to maintain the business in this small region.
http://www.oasishongkong.com/error/4...utus/team.aspx
Its sad, cant believe how difficult to maintain the business in this small region.
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I have a feeling most if not all of the drivers will find new employment easily - especially with Emirates and the likes. Cx will prob take a few on the freighter - as well as a lot of the groundstaff.
Overall a sad thing to see happen but at least the market is such that most of the people will find something else quite easily.
It does help that the property market is healthy for all those guys who have big mortgages.....
Overall a sad thing to see happen but at least the market is such that most of the people will find something else quite easily.
It does help that the property market is healthy for all those guys who have big mortgages.....
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Air conditioned oasis of low fare magic: All smoke and mirrors
The top dog managers obviously are all crooks, cooking the books and running the company into the ground with investors' money, but quietly stuffing their pockets without giving a hint of trouble. . . . 
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Well for all those who said it was financially sound right up to recently, suggest you get a new login....
As these are anonymous forums the origins of the contributions may be opposite to what may be apparent.
As these are anonymous forums the origins of the contributions may be opposite to what may be apparent.
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What a shame. My thoughts go out to all the guys and girls whose lives have been plunged into chaos by this unfortunate turn of events. This is no time to celebrate - for anyone. Bon chance mes amis.
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Originally Posted by otrendycar
the management page has been removed
http://web.archive.org/web/200708291...utus/team.aspx
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Thanks for links to the management team. Is it just me, or does that team seem to lack solid experience of running an airline. Most seem to be in commercial property; the CEO founded Dragonair, but after that, he's down as a consultant for 10+ years.
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http://news.bbc.co.uk/1/hi/business/7338424.stm Just been announced by the BBC.
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Boss' share pledge 'foiled Oasis rescue' - SCMP
HK budget airline collapses, hitting 30,000 travellers and 700 staff Quinton Chan and Dennis Eng
Updated on Apr 10, 2008 Budget airline Oasis Hong Kong, which collapsed yesterday, was on the brink of a rescue package when it was discovered that its chairman had pledged his shares in the carrier as collateral for a personal loan, a source familiar with the situation said.
The source said the discovery was made during the final stages of negotiations with HNA Group, parent group of Hainan Airlines, which had been prepared to buy out Oasis.
"You can say that he derailed the airline," the source said, referring to chairman the Reverend Raymond Lee Cho-min, who held about 60 per cent of shares in the company. It was unclear how many shares Mr Lee had pledged as collateral. He was not available for comment last night.
The rescue deal failed, prompting the world's first budget long-haul airline to file for provisional liquidation, affecting 30,000 ticket-holders and leaving 700 staff facing an uncertain future. Reports said losses had reached HK$1 billion since the airline launched services in October 2006. It is the fourth airline worldwide to cease operations in the past two weeks.
The ambitious start-up airline struggled to attract fresh capital up to the last minute, but told the government late on Tuesday that discussions with a potential investor had collapsed. The administration had learned of the airline's financial difficulties on Saturday.
Oasis sought protection from the High Court yesterday morning and accounting firm KPMG was appointed provisional liquidator. The 700 staff have been paid up to March 31.
All passenger services were suspended immediately, forcing the government to send staff to London and Vancouver to liaise with stranded passengers. An estimated 30,000 passengers are believed to be holding tickets for which they have paid a total of HK$300 million.
A flight from Vancouver, which landed in Hong Kong at about 10.30 last night, was the airline's last.
Cathay Pacific and British Airways are offering Oasis passengers on the London route concessionary prices. Ticket-holders can also contact Singapore Airlines for services to London, and Air Canada and China Airlines for the Vancouver route.
"KPMG will be looking for new investors for the airline in the next few days and we are very confident somebody will come forward," Oasis chief executive Stephen Miller said.
He did not specify why Oasis declared insolvency. Budget carrier AirAsia and various takeover funds were being touted last night by market observers as possible buyers of Oasis assets. However, AirAsia chief executive Tony Fernandes denied his budget carrier was interested.
KPMG head of restructuring services Edward Middleton said he had yet to evaluate the finances of Oasis and could not comment on media reports that losses had reached HK$1 billion.
A government source said last night the administration would consider measures to control bookings made well in advance. Airlines could be required to place a deposit in a fund before being allowed to take bookings for travel several months or even years ahead, the source said.
Hopes were high that Oasis, as a full-service airline, would help break the market dominance enjoyed by rival Cathay Pacific.
Oasis is the first passenger airline to go bankrupt in Hong Kong. In October 1988, local freight carrier Transcorp Airways closed its operations.
Updated on Apr 10, 2008 Budget airline Oasis Hong Kong, which collapsed yesterday, was on the brink of a rescue package when it was discovered that its chairman had pledged his shares in the carrier as collateral for a personal loan, a source familiar with the situation said.
The source said the discovery was made during the final stages of negotiations with HNA Group, parent group of Hainan Airlines, which had been prepared to buy out Oasis.
"You can say that he derailed the airline," the source said, referring to chairman the Reverend Raymond Lee Cho-min, who held about 60 per cent of shares in the company. It was unclear how many shares Mr Lee had pledged as collateral. He was not available for comment last night.
The rescue deal failed, prompting the world's first budget long-haul airline to file for provisional liquidation, affecting 30,000 ticket-holders and leaving 700 staff facing an uncertain future. Reports said losses had reached HK$1 billion since the airline launched services in October 2006. It is the fourth airline worldwide to cease operations in the past two weeks.
The ambitious start-up airline struggled to attract fresh capital up to the last minute, but told the government late on Tuesday that discussions with a potential investor had collapsed. The administration had learned of the airline's financial difficulties on Saturday.
Oasis sought protection from the High Court yesterday morning and accounting firm KPMG was appointed provisional liquidator. The 700 staff have been paid up to March 31.
All passenger services were suspended immediately, forcing the government to send staff to London and Vancouver to liaise with stranded passengers. An estimated 30,000 passengers are believed to be holding tickets for which they have paid a total of HK$300 million.
A flight from Vancouver, which landed in Hong Kong at about 10.30 last night, was the airline's last.
Cathay Pacific and British Airways are offering Oasis passengers on the London route concessionary prices. Ticket-holders can also contact Singapore Airlines for services to London, and Air Canada and China Airlines for the Vancouver route.
"KPMG will be looking for new investors for the airline in the next few days and we are very confident somebody will come forward," Oasis chief executive Stephen Miller said.
He did not specify why Oasis declared insolvency. Budget carrier AirAsia and various takeover funds were being touted last night by market observers as possible buyers of Oasis assets. However, AirAsia chief executive Tony Fernandes denied his budget carrier was interested.
KPMG head of restructuring services Edward Middleton said he had yet to evaluate the finances of Oasis and could not comment on media reports that losses had reached HK$1 billion.
A government source said last night the administration would consider measures to control bookings made well in advance. Airlines could be required to place a deposit in a fund before being allowed to take bookings for travel several months or even years ahead, the source said.
Hopes were high that Oasis, as a full-service airline, would help break the market dominance enjoyed by rival Cathay Pacific.
Oasis is the first passenger airline to go bankrupt in Hong Kong. In October 1988, local freight carrier Transcorp Airways closed its operations.
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Chairman tells of how the noose tightened -SCMP
Updated on Apr 10, 2008 Last night, this open letter was issued by the chairman of Oasis Hong Kong Airlines, the Reverend Raymond Lee Cho-min and his wife, Priscilla, in response to the collapse of the budget carrier. It read:
"It is with extreme sadness in our hearts that we announced to you today that Oasis Hong Kong Airlines has just applied to the court and the court has appointed KPMG as our provisional liquidator. It is our wish and goal that during this period when our company's assets are being preserved and our debts are being restructured that the right financial/strategic "white knight" will come along to bring this company to new heights in the very near future.
What saddened our hearts the most is that we are letting down the many precious passengers from Hong Kong and from around the world, the many co-workers and partners that we deeply love and cherish, and without whom we would never have been here in the first place. We are deeply sorry for the difficulties and grief that this event has caused many. One thing we want to assure you is that all of us have done our very best and have exhausted every possible option under the sun before we came to this most difficult decision and action of our lives.
When this airline began, [chief executive] Stephen Miller's business plan was based on aircraft rental, and not aircraft purchase. The original business plan required only US$25 million to achieve profitability. However, during our ATLA licence application process, as we faced opposition from our competitors for almost six months, our rental aircraft were then snatched away by other competition, and we have had to purchase aircraft instead of renting them. This placed a huge strain on the group's financial resources.
In the following months, the hike of the oil prices has also affected us severely. As a newly started airline, we have found it next to impossible to obtain a credit facility from financial institutions to carry out fuel-hedging programmes. We only managed to hedge once successfully. As oil prices sharply increased, the fuel costs took up the majority of our budget. Just in the last two weeks, at least four airlines around the world have made announcements to stop trading or shut down completely due to huge oil price hikes and [the] difficult financial climate.
On top of all this, we also faced relentless competitive response from every direction, aiming to crush us for good. And only until very recently, we have had great difficulty recruiting top local aviation talent to join us, and we have had to go to great lengths to hunt for the right personnel we need from all around the world.
We dearly love Hong Kong and are proud to be members of the Hong Kong family. It has been and will continue to be our wish and prayer that all 7 million Hong Kong people can go and see the world and that the world's travellers are brought to Hong Kong in huge numbers. Therefore, we seek your help, support and prayers that the right `white knight' comes forward soon during this critical period to put this airline back to full strength for the good of all of Hong Kong and to take it to higher heights.
Again, please accept our deepest apologies for the inconvenience and trouble that this halt in our service has caused you and your loved ones."
"It is with extreme sadness in our hearts that we announced to you today that Oasis Hong Kong Airlines has just applied to the court and the court has appointed KPMG as our provisional liquidator. It is our wish and goal that during this period when our company's assets are being preserved and our debts are being restructured that the right financial/strategic "white knight" will come along to bring this company to new heights in the very near future.
What saddened our hearts the most is that we are letting down the many precious passengers from Hong Kong and from around the world, the many co-workers and partners that we deeply love and cherish, and without whom we would never have been here in the first place. We are deeply sorry for the difficulties and grief that this event has caused many. One thing we want to assure you is that all of us have done our very best and have exhausted every possible option under the sun before we came to this most difficult decision and action of our lives.
When this airline began, [chief executive] Stephen Miller's business plan was based on aircraft rental, and not aircraft purchase. The original business plan required only US$25 million to achieve profitability. However, during our ATLA licence application process, as we faced opposition from our competitors for almost six months, our rental aircraft were then snatched away by other competition, and we have had to purchase aircraft instead of renting them. This placed a huge strain on the group's financial resources.
In the following months, the hike of the oil prices has also affected us severely. As a newly started airline, we have found it next to impossible to obtain a credit facility from financial institutions to carry out fuel-hedging programmes. We only managed to hedge once successfully. As oil prices sharply increased, the fuel costs took up the majority of our budget. Just in the last two weeks, at least four airlines around the world have made announcements to stop trading or shut down completely due to huge oil price hikes and [the] difficult financial climate.
On top of all this, we also faced relentless competitive response from every direction, aiming to crush us for good. And only until very recently, we have had great difficulty recruiting top local aviation talent to join us, and we have had to go to great lengths to hunt for the right personnel we need from all around the world.
We dearly love Hong Kong and are proud to be members of the Hong Kong family. It has been and will continue to be our wish and prayer that all 7 million Hong Kong people can go and see the world and that the world's travellers are brought to Hong Kong in huge numbers. Therefore, we seek your help, support and prayers that the right `white knight' comes forward soon during this critical period to put this airline back to full strength for the good of all of Hong Kong and to take it to higher heights.
Again, please accept our deepest apologies for the inconvenience and trouble that this halt in our service has caused you and your loved ones."
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So this 'white knight' is supposed to bail out an airline in the current hostile climate that is alleged to have a billion dollar black hole, staff unpaid since 31st March, no 'world class management', no fuel hedging, an entrenched monopoly competitor, purchased aircraft depreciating (unless the 787 debacle increases their price for a while) and a disenchanted pax base bound to be suspicious of laying out their hard earned and increasingly scarce spare cash having been bitten once. Despite how truly sorry I feel for the people of all persuasions that have lost their jobs, methinks that the 'white knight' will have to have a white stick....
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superbly put, Kitusune.
Perhaps the good Reverend will have to wave the white flag to his white knight in terms of accepting only a few cents on his invested dollar.
I had heard that the investment basis for Oasis was separated between the operating company and a separate entity that owns the aircraft. So perhaps the Reverend is protesting too much about having to actually buy the aircraft in the first place? He may still be holding some kind of tradeable asset - more than his cherished passengers, at least. This might be why the VC firm that put in $20m in October reckons it has some kind of come back on the liquidation? All of this is conjecture.
Clearly he is hoping that this "halt" in service will come to an end. Probably with HNA Group buying in? If so, the quality of management is unlikely to improve. Anyway, as lead shareholder, what was he doing accepting a low calibre of management in the first place?
The fact is that - outside of CX - management quality in Hong Kong airlines is very weak. I say this with full knowledge of the risk of the howl of protest from the hundreds of arm chair management experts who refer to anyone without a type rating as a "bean counter". Oasis didn't count its beans very well, did it?
Good people who leave CX go into other industries (and perhaps logistics etc). So the other carriers get CX/KA retirees and people who saw the writing on the wall in terms of their own career progression.
And, anyway, strictly speaking the best LCCs do not rely on traditional airline managers to run their businesses in the first place. The full service guys don't have the right mindset, at least for the majority of non-operational positions.
Perhaps the good Reverend will have to wave the white flag to his white knight in terms of accepting only a few cents on his invested dollar.
I had heard that the investment basis for Oasis was separated between the operating company and a separate entity that owns the aircraft. So perhaps the Reverend is protesting too much about having to actually buy the aircraft in the first place? He may still be holding some kind of tradeable asset - more than his cherished passengers, at least. This might be why the VC firm that put in $20m in October reckons it has some kind of come back on the liquidation? All of this is conjecture.
Clearly he is hoping that this "halt" in service will come to an end. Probably with HNA Group buying in? If so, the quality of management is unlikely to improve. Anyway, as lead shareholder, what was he doing accepting a low calibre of management in the first place?
The fact is that - outside of CX - management quality in Hong Kong airlines is very weak. I say this with full knowledge of the risk of the howl of protest from the hundreds of arm chair management experts who refer to anyone without a type rating as a "bean counter". Oasis didn't count its beans very well, did it?
Good people who leave CX go into other industries (and perhaps logistics etc). So the other carriers get CX/KA retirees and people who saw the writing on the wall in terms of their own career progression.
And, anyway, strictly speaking the best LCCs do not rely on traditional airline managers to run their businesses in the first place. The full service guys don't have the right mindset, at least for the majority of non-operational positions.