Startup budget airline Oasis Hong Kong, the business launched by Hong Kong family business owner Raymond Lee (pictured) and his wife, has folded. The firm has announced it has applied to the Hong Kong Court to appoint a provisional liquidator. KPMG has since assumed control of the airline.
Flight operations have been cancelled until further notice and KPMG are liaising with other airlines in order to help customers make alternative travel arrangements.
"As oil prices sharply increased, fuel costs took up the majority of our budget," said Lee in an open letter, also blaming the carrier's inability to obtain credit to hedge fuel prices.
Oasis Hong Kong Airlines commenced service in October 2006, claiming to pioneer a fresh approach to flying by making frequent long-haul travel accessible to all. On its corporate website, the airline said it "looked set to change the future of long-haul travel to and from Asia."
In an exclusive interview, Lee told Families in Business in January last year that: "We went to numerous conferences, read dozens of books on low-cost carriers and aviation and hundreds of investment banking papers, and we came to the conclusion that there was a business case for this airline."
To read the interview in full, click here.