Crisis poses threat to Airlines Industry's Future

Due to an unexpected development in the recent days hundred of passengers have been left stranded, an incomparable event in the history of international airlines. Reason? The Hong Kong airline Oasis which was liable to take the passengers along with it suddenly stopped all its operations followed by its application for liquidation. It should be noted that the first flight of Oasis happened in October 2006, offering flights from London Gatwick to Hong Kong for as little as 1,000 Hong Kong dollars (£65) each way. In the later years it also started operation of flights from Hong Kong to Vancouver. Well, those were the years when Oasis used to operate flights between London and Hong Kong and six services a week between Hong Kong and Vancouver. But by now all have been shattered and what remains is a sweet memory of proficiency.

In the meanwhile speaking on this unusual development a Cathay Pacific spokeswoman said, "There are hundreds of people stranded, including children returning after the Easter school holidays." The Chief Executive of Oasis also Stephen Miller held a news conference to announce the shutdown but did not give any details of why it had happened. However, to the estimation of the Hong Kong Economic Times that the airline was struggling with debts of up to one billion Hong Kong dollars ($128m).

Well, Oasis does not stand alone in the list. There are also the Hawaiian airline Aloha and the business class airline Maxjet in the same list, who have been forced to move out of the business scenario due to the soaring fuel bills. But even this dramatic development has failed to surprise David Learmount, the Operations and Safety Editor of Flight International magazine. In hi own words he said, "Given the economic climate that exists, Oasis was always going to struggle to succeed. If you look at all the budget airlines, they are all operating either domestically within their own country or within Europe. Europe has had completely open skies for years now, so flying within Europe is really like flying domestically. Airlines can complete comparatively-short flights and turn their aircraft round quickly and they are not subject to rules and regulations that govern aviation in other parts of the world."