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Airlines

Name: OASIS HONG KONG AIRLINES
7JetSet7 Code: OHK
Status: Currently Not Operational
Region: CHINA
City: HONG KONG
Country: CHINA
Employees 277
Web: oasis-air.com
Email: info@oasis-air.com
Telephone: +852 2523-4935
Fax: +852 2523 5540
Sita:
Background
(definitions)

Click below for data links:
OHK-2006-02-A-INTRO
OHK-2006-09-747-400
OHK-2006-10-747
OHK-2011-05-HONG KONG EXHIBITION

Formed in 2005 and started operations in 2006. International, scheduled & charter, passenger & cargo, jet airplane services.

Address:
Lippon Centre, Tower 2, Room 2902-3
89 Queensway
Admiralty, Hong Kong

Hong Kong on July 1st, 1997 became a semi-autonomous territory within Mainland-China. It covers an area of 1,071 sq km, its population is 6.5 million, and its official languages are Chinese and English.

February 2006: Proposed long haul, budget carrier Oasis Hong Kong Airlines (OHK) is moving ahead with plans to launch operations this summer after being granted routes to Berlin, Chicago, Cologne, London, Milan, & Oakland, by Hong Kong's Air Transport Licensing Authority. The airline's maiden flight to London Gatwick is scheduled to take place in June 2006.

It hopes to obtain its Air Operator's Certificate (AOC) by the Civil Aviation Department in the next couple of months.

(OHK) has start-up capital in excess of $100 Million.

Stephen Miller, CEO was a founder and former CEO of Hong Kong's second largest airline, Dragonair (DRG).

Plans to initially lease 5 747-400's and has a 5-year plan to expand its fleet to 25 airplanes, serving between 12 and 15 destinations.

(OHK) is proposing fares up to -50% lower than full-service carriers and will offer two classes of service, including a budget business-class (C) product.

March 2006: Oasis Hong Kong Airlines (OHK), a start-up discount carrier, has been forced to announce another launch delay because of its failure to secure the necessary airplane leases. CEO Stephen Miller told local media that flights between Hong Kong and London's Gatwick Airport should be launched by August or September this year, instead of June as previously hoped. Miller said the airline was in "final negotiations" to secure airplanes, but noted the market was tight. (OHK) will be one of the few low-fare carriers to focus on long-haul flights. Plans to launch services last year were delayed because of objections raised by local airlines, including Cathay Pacific (CAT). (OHK) has been awarded the right to fly to six cities in Europe and the USA, and likely will serve Milan, Berlin, Cologne, Oakland and Chicago.

(OHK) acquired two 747-412s (24063; 24065), previously opera0ted by Singapore Airlines (SIA) from Deucalion Capital. The airplanes will be delivered in July and enter service on the Hong Kong - London Gatwick route by the end of September. "They are in excellent condition and perfect for our exclusive new long-haul, nonstop services priced for the budget-conscious traveler," CEO, Stephen Miller said.

July 2006: Oasis Hong Kong Airlines (OHK), a start-up slated to launch in October, said it hired 213 pilots (FC) and cabin crew (CA) this week, and appointed Jardine Aviation Services as its ground handling agent.

747-412 (24063), ex-Singapore Airlines (SIA).

August 2006: Oasis Hong Kong Airlines (OHK), a startup slated to launch in October, yesterday selected PAM (Oasis) Ltd to establish, operate and maintain its Hong Kong-based call center.

September 2006: Oasis Hong Kong Airlines (OHK), which will launch 747-400 service to London Gatwick (LGW) on October 25, unveiled its fare structure, inflight product and other details this week in Hong Kong. The airline will initially operate 4 flights a week through November 24th, then increase that number to daily flights using ex-Singapore Airlines (SIA) B747-400s. (OHK) is looking to operate 5 airplanes by the end of 2007 and is considering destinations in Europe and North America, including Berlin, Cologne, Milan, Chicago and Oakland.

(OHK) has acquired two 747-400s from Singapore Airlines (SIA) configured for 278 in economy class (Y) and 81 in business class (C). Service will operate four-times-weekly through November 24, when it will become daily.

The carrier will offer four types of fares, with economy low season one-way fares to (LGW) ranging from HK$1,000/$129 to HK$3,000, or to HK$4,200 in high season. One-way business class fares will range from HK$6,600 to HK$20,000. Fuel surcharge is HK$481. Seat pitch in economy is 32 inches. Business class seats offer 60-inches pitch. Both classes feature individual IN-Flight Entertainment (IFE) units with up to 16 video and 12 audio channels.

"Our vision is to make long-haul travel more accessible and to create a new choice not just for people coming to Hong Kong, but also for the people of Hong Kong and the Pearl River Delta to connect to the world," Chairman, Raymond Lee said. (OHK) is targeting five airplanes by the end of next year, and intends to serve Oakland, Chicago, Cologne/Bonn, Berlin and Milan, among other North American and European cities.

It has contracted (HAECO) (CAT) for engineering and maintenance, Cargolux (CLX) as its cargo General Sales Agent (GSA) and (HACTL) as its handler, LSG Sky Chefs for catering, Jardine Aviation Services for ground handling, and PAM (Oasis) for customer service. Galileo will handle Internet distribution, and Radixx International will provide its Internet-based Radixx Air Enterprise passenger reservations and management tool.

(OHK)'s airplanes will be painted in red and white with a "streaks of light" motif on the tail. The airline is owned by Hong Kong investors.

(OHK), preparing for an October 25 launch, said it has sold an average of 1,100 tickets per day since it started accepting reservations two weeks ago.

1st 747-412, ex-Singapore Airlines (SIA) delivery - see photo.

October 2006: Oasis Hong Kong Airlines (OHK) said it received its Air Operators Certificate (AOC) from the Hong Kong Civil Aviation Department and is on schedule to operate its inaugural flight to London Gatwick (LGW). It said it has sold more than 18,000 tickets on its four-times-weekly 747-400 service since early September.

Later, (OHK) was forced to postpone its inaugural 747-400 service to (LGW), saying the flight was delayed by Russian authorities "for as yet unexplained reasons" and adding, "We regret and apologize for the inconvenience caused to our passengers, and are doing our utmost to resolve the issue directly with the Russian authorities." The flight was scheduled to depart at 1 pm local time and was canceled at 6:30 pm, "Reuters" reported. (OHK) said that "despite all paperwork being in order, and having received all necessary approvals, the Russian authorities . . . have chosen to hold up the overflight rights."

(OHK), the world's first long-haul budget airline, said it has now received the necessary approvals it needs from Russia, after its maiden flight was delayed yesterday when Russia refused last-minute overflight rights. 'We've got the approval from Russia,' (OHK) Commercial Director, Ken Chad told "Agence France-Presse." 'I can't predict the future, but we have everything we need that an airline requires (to fly),' Chad said. (OHK) was refused overflight rights for its inaugural flight just an hour before take-off. Management insisted they had been given clearance earlier.

Later, (OHK) launched operations, albeit a day late.

January 2007: Oasis Airlines of Hong Kong (OHK) is expected to expand its low-cost long-haul operation to Oakland in June. Plans call for four flights per week. Earlier this month, the airline celebrated its 25,000th passenger on its Hong Kong - London Gatwick service. It launched in October and operates two 747-400s.

March 2007: (ANA) accelerated its fleet rationalization program with the sale of three 747-400s to Oasis Growth Income and Investments for operation by Oasis Hong Kong Airlines (OHK). (ANA) operates 23 747-400s. Two of the newly sold 747-400s will leave the fleet this year, and the remainder will head to Hong Kong in 2008.

May 2007: Starting June 28th, Hong Kong - Vancouver using 747-400s puchased from All Nippon Airways (ANA).

August 2007: After some initial difficulty, Chinese Low Cost Carriers (LCC)s are making progress with securing new investors and subsequent Initial Public Offerings (IPO)s. Hong Kong-based long-haul carrier Oasis Hong Kong Airlines (OHK) plans to sell a 20% stake to a new investor by October, Chairman, Li Zhuomin confirmed to the local "Ta Kung Pao" newspaper. In addition, privately run Shenzhen Airlines (SHZ) revealed its plan to sell a 20% share worth approximately $200 million to a single investor, with Deutsche Bank and several hedge funds, including Marathon and Och-Ziff, among the widely reported candidates. (SHZ) has refused to reveal where it will list, but industry insiders have indicated Shanghai is the likely choice. (OHK) and (SHZ) are among several newer entrants who have pursued strategic investors as access to traditional funding has become more problematic. While some have had difficulty, Li told "Ta Kung Pao" that many international investment banks and financial organizations have expressed an interest since (OHK)'s inaugural flight to London last fall. The carrier currently is negotiating with interested parties and a decision is expected in October. Earlier this year, it said it expected to raise as much as HK$10 billion/$1.28 billion with an initial share sale in 2009.

Among other start-ups, Shanghai-based Juneyao Airlines (JYA) is preparing an overseas private placement of 20% to 25% and expects to raise approximately $150 million in an Initial Public Offering (IPO). Last month, Spring Airlines (CQH) confirmed it reached a deal with Citibank. It plans to list on a foreign exchange in 2009.

Industry analysts have noted that the timing is right for Chinese (LCC)s to introduce new investors and plan (IPO)s, as the interest of foreign investors has been raised by the industry's improved performance in the first semester and expectations of continuing appreciation of the yuan.

September 2007: STG Aerospace said Oasis Hong Kong Airlines (OHK) ordered five shipsets of the latest ColorMatch variant of STG's floorpath marking system for its 747-400 fleet.

October 2007: Oasis Hong Kong Airlines (OHK) secured a $30 million investment from funds managed by Value Partners Ltd and affiliates, the Centre for Asia Pacific Aviation (CAPA) said. (OHK) currently operates three 747-400s, with a fourth set to arrive this year, and a fifth in early 2008. (CAPA) said (OHK) plans to operate 14 747-400s on eight routes by 2011.

April 2008: Hit hard by surging oil prices and fierce competition from Cathay Pacific Airways (CAT), Oasis Hong Kong Airlines (OHK), the 17-month-old low-cost, long-haul carrier, ceased operations.

(OHK) CEO, Stephen Miller said the airline applied for a voluntary liquidator and that two representatives of (KPMG) were appointed by the Hong Kong Court to oversee the liquidation. Miller did not reveal the company's financial performance, but it has been reported that (OHK) had suffered -HK$1 billion/-$128.4 million in losses, since launching operations. He said it will continue to search for a new investor. According to widespread news reports in Hong Kong, China's HNA Group is interested in expanding its foothold there and is negotiating with (OHK).

The budget carrier launched in October 2006 and was flying four 747-400s daily to London Gatwick and six-times-weekly to Vancouver. It was planning on flying to Chicago O'Hare, San Francisco, Berlin, Cologne/Bonn, Manchester, Milan Malpensa, Melbourne, and Sydney. Miller claimed that it enjoyed 90% LF loads on its two operating routes.

(CAT) announced that it will offer a "special airfare" to passengers already booked on (OHK) flights, scheduled for the next two weeks.

(OHK) liquidator (KPMG) said that the deadline to find a new buyer or investor had passed, despite "substantive negotiations with several interested parties" and that there now was "no alternative but to reduce costs substantially." Jobs of all pilots (FC), cabin crew (CA) and office staff were terminated, with a "small number" kept on to assist the liquidators, (KPMG) announced. "Reuters" reported that about 700 lost their jobs. (OHK) ceased operations on April 9.

June 2008: Air Namibia (NAM) found itself inconvenienced by the shut down of Oasis Hong Kong Airlines (OHK) when a 747-400 (29263, B-LFC), it was wet-leasing from the Hong Kong based carrier, was impounded in Hong Kong. (NAM) had arranged the lease to cover for a scheduled maintenance check on one of its A340-300 airplanes.

Fleet:
(definitions)

Click below for photos:
OHK-747-412

April 2008:

0 747-412 (PW4056) (736-24063, /89 7/06; 761-24065, /89), EX-(SIA). TO (MLI) 2009-08. 30C, 400Y.

2 +1 ORDER 747-481 (CF6-80C2B1F) (1199-29262, /99 N262SG; 29263, B-LFC), EX-(ANA), WET-LST (NAM) 2008-03. 29262; ST (SON) 2008-08. 10F, 63C, 252Y.

Management:
(definitions)

Click below for photos:
OHK-CEO
OHK-CHMN
OHK-DIR

REVEREND RAYMOND LEE, CHAIRMAN & EXECUTIVE DIRECTOR.

In addition to being Chairman of Oasis Hong Kong Airlines (OHK) and his leadership over the Oasis group of real estate investment and development companies, Reverend Lee is also Chairman & Managing Director of HY & HT Lee Bros & Co Ltd (Hong Kong); Chairman & CEO of East-West Enterprises Co Ltd (Cambridge, Massachussetts, USA) and an independent non-executive Director of Wo Kee Hong (Holdings) Ltd. Over the years, he has served on the boards of various community, corporate and charitable organizations.

Mrs Priscilla Hwang Lee is the Co-Chief Executive Officer of Oasis Development Enterprises. Mrs Lee holds a bachelor of music degree from the New England Conservatory of Music and a master of arts in theological studies degree from Gordon-Conwell Theological Seminary. In addition to her role with Oasis, Mrs Lee has been the VP of the CANA Corporation, a real estate investment company in Washington State, USA since 1986, and alongside Reverend Lee, is Executive Director of Oasis Hong Kong Airlines (OHK). Mrs Lee is also a community and youth activist, having given much of her time in the past to programs for Cambodian at-risk youths in Lowell, Massachussetts, USA.

LI ZHUOMIN, CHAIRMAN.

DR ALLAN WONG, DIRECTOR.

Dr Wong is Chairman and Group Chief Executive Officer of VTech Holdings, a leading consumer electronics manufacturer based in Hong Kong. He holds a Bachelor of Science degree in Electrical Engineering from the University of Hong Kong, a Master of Science degree in Electrical and Computer Engineering from the University of Wisconsin, USA, and an honorary degree of Doctor of Technology from the Hong Kong Polytechnic University. Dr Wong is the Chairman of the Hong Kong Applied Science and Technology Research Institute and an ex-officio member of the Steering Committee on Innovation and Technology. He is also a council member of the University of Hong Kong, an independent non-executive director of the Bank of East Asia Limited, China-Hong Kong Photo Products Holdings Limited and Li & Fung Limited.

STEPHEN MILLER, CHIEF EXECUTIVE OFFICER (CEO).

Steve Miller started his airline career with Cargolux Airlines International (CLX) in 1972, where he was Director, Asia/Pacific. He saw (CLX) develop from an airline with 2 Canadair swing tail CL44 freighters to the new 747-200F freighter in 1979.

In 1983, he joined the Irish aircraft leasing company Guinness Peat Aviation (the (GPA) Group) as President of their Asia based company, successfully trading 747s for the group and launching their leasing activities in China. In 1985, Mr Miller founded Dragonair (DRG) and became the airline's first Chief Executive. (DRG) was the brainchild of Mr Miller and he developed the airline through its early stages securing investors, writing the business plan, obtaining the (AOC), route licenses and leasing the airplanes. He left in 1988 when the airline was operating to China, Japan, Malaysia, Guam, Bangladesh and Nepal with a fleet of 737-200s. Shortly afterwards, Cathay Pacific (CAT) took over the management of (DRG).

Since then, Mr Miller has been running his own aviation consultancy successfully representing such companies as Rolls-Royce (RR) plc, ATR, Fokker, Thales (THL), AWAS (AWW), Itochu, Frankfurt Airport and Amsterdam Schiphol in various parts of Asia. During the period 1993 to 1997, Mr Miller has acted as a General Sales Agent for Vietnam Airlines (VIE) and was involved in a joint venture with Morning Star Travel. In recent years, he has also written business plans for a number of successful start-up airlines in Asia.

In mid-2004, Mr Miller recognized the need for an international, long-haul, budget airline based in Hong Kong and, after successfully attracting investors, this has now become Oasis Hong Kong Airlines Ltd (OHK).

KEN CHAD, COMMERCIAL DIRECTOR.

 
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