Post by vgp on Apr 17, 2008 8:51:47 GMT 12
Air NZ flights full after Oasis failure
By ROELAND VAN DEN BERGH - The Dominion Post | Thursday, 17 April 2008
Air New Zealand flights between Hong Kong and London are full to capacity because of the collapse of budget airline Oasis Hong Kong last week.
Thousands of people were left stranded or holding useless tickets when Oasis, the first long-haul low-cost airline, failed on April 9.
Ed Sims, Air New Zealand's head of international, said all its planes on the route were flying 100 per cent full as Oasis passengers tried to rebook.
About 1500 Oasis passengers were thought to have rebooked with Air New Zealand for travel up till September, of which about 200 had flown in the past week, Mr Sims said.
Oasis passengers were not being offered special deals, but Air New Zealand had asked up to 10 per cent of its own passengers travelling from New Zealand to Britain to change to flights through Los Angeles to free seats between Hong Kong and London.
No passengers were being forced to make the change.
Hong Kong-based Cathay Pacific put on two flights to move about 2000 stranded Oasis passengers and provided seats on regular services at special fares.
Mr Sims said Oasis was charging about $700 for return economy tickets, which was not nearly enough to cover the operating costs of its older Boeing 747-400s.
"When other airlines have been forced to undercut operating cost and to some extent below fuel cost on a route then clearly it is not rational competition," he said.
Hong Kong airport authorities had called for airlines to maintain stable fare structures in the wake of the Oasis collapse.
"So there has been a sensible reaction both in terms of capacity and where fares have sat subsequently," Mr Sims said.
"But we have definitely benefited."
The Hong Kong-London route was one of the most competitive in the world, with five full service airlines offering daily flights.
"It is not a market for the faint-hearted."
The jury was out on whether low-cost long-haul airlines had a future. "Every airline operating long haul is operating in a low fares regime currently."
www.stuff.co.nz/4483377a13.html
By ROELAND VAN DEN BERGH - The Dominion Post | Thursday, 17 April 2008
Air New Zealand flights between Hong Kong and London are full to capacity because of the collapse of budget airline Oasis Hong Kong last week.
Thousands of people were left stranded or holding useless tickets when Oasis, the first long-haul low-cost airline, failed on April 9.
Ed Sims, Air New Zealand's head of international, said all its planes on the route were flying 100 per cent full as Oasis passengers tried to rebook.
About 1500 Oasis passengers were thought to have rebooked with Air New Zealand for travel up till September, of which about 200 had flown in the past week, Mr Sims said.
Oasis passengers were not being offered special deals, but Air New Zealand had asked up to 10 per cent of its own passengers travelling from New Zealand to Britain to change to flights through Los Angeles to free seats between Hong Kong and London.
No passengers were being forced to make the change.
Hong Kong-based Cathay Pacific put on two flights to move about 2000 stranded Oasis passengers and provided seats on regular services at special fares.
Mr Sims said Oasis was charging about $700 for return economy tickets, which was not nearly enough to cover the operating costs of its older Boeing 747-400s.
"When other airlines have been forced to undercut operating cost and to some extent below fuel cost on a route then clearly it is not rational competition," he said.
Hong Kong airport authorities had called for airlines to maintain stable fare structures in the wake of the Oasis collapse.
"So there has been a sensible reaction both in terms of capacity and where fares have sat subsequently," Mr Sims said.
"But we have definitely benefited."
The Hong Kong-London route was one of the most competitive in the world, with five full service airlines offering daily flights.
"It is not a market for the faint-hearted."
The jury was out on whether low-cost long-haul airlines had a future. "Every airline operating long haul is operating in a low fares regime currently."
www.stuff.co.nz/4483377a13.html
