Oasis impact on CX
 

Given the few planes/seats involved, this makes little difference to the HKG market, but an interesting development nevertheless. The pricing is particularly fascinating, with a 3:1 range in fares from low to high season, or whatever factor will determine the price.

Per ATW: "Oasis has acquired two 747-400s from Singapore Airlines configured for 278 in economy class and 81 in business class. Service will operate four-times-weekly through Nov. 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 in. Business class seats offer 60-in. pitch. Both classes feature individual IFE units with up to 16 video and 12 audio channels."

But with $1000 one way or $2000 return, it is cheap, but somehow I do not quite think it is as "fantastic" as what many HK public think... 1) Horrible schedule, esp first few months, 2) Only 10%of Y class are $1000, so there are really not many deep discounted seats, 3) Even Qantas is doing $3280 return to LHR, booking in N class earn 100% QFFFP points, can fly on either QF or BA flight when return from LHR to HKG (more flight choices then)...

With these, I don't really think Oasis is super cheap then...

Hum.
HK$1000, and HK$2000 for return are relatively cheap.

In lowest season,
NRT-xHKG-LHR(CDG,FRA)-HKG-NRT mile earning eligible fare are
around 6000 HK$.

Anyway, these are ex-Japan fare, not ex-HK.

I think these guys need to pay a litte bit more for webhosting... I keep on going to oasisairline.com.hk which doesn't work!

HK$2000 is pretty good to LHR (even if it is Gatwick)...

But when I tried looking this morning -- couldn't snag any of the $1000 return seats -- could only get one for $1500. Now, HK$2500 is a well... like another poster said pretty close to Qantas's offering. And if you can't get both -- well it is $3000 which makes the QF points + LHR just a bit more attractive in my mind.

So I think only worth it when you can get the super cheap seats....

I think the assault really is for business class... getting 2 * $6600 => $13200... how would that compare to a WT+ seat? only a little bit more pricey but much better?

Could not agree more! I think this is where it is going to get interesting. I know heaps of people (myself included) that would pay $13200 for J class return to LON. Now of course I hope this means some fantastic I class fares on CX/QF/BA so that I can still earn miles :p

But J class in a 60" seat (so that's like CX's regional business class) so you can't really sleep, but no AVOD to keep you awake, and no free booze (I guess). No lounge access (once you lose the Diamond card, and only business class lounge before that). Gatwick.

Nah - I'll stick with my lowest published mileage earning CX Y fare plus 60,000 miles (48,000 net of the ones you earn) thanks very much.

I think 60" is closer to CX NBC - the regional one probably has around 50" pitch.

While no AVOD, there are 16 video channels (looks like they kept the old SQ IFE system). And I cannot imagine a J service with no free booze (even most of the dry Islamic airlines offer booze in J!).

With only 2 planes, growing to 5, it isn't a big impact, but their future city list is interesting (Oakland and Chicago in the US, for example). Not sure where they can get additional used 744s, though, these are in short supply. SQ probably cut them a deal just to be a thorn in CX's side, but SQ is not going to have too many more 744s to sell to Oasis.

Free booze is included in Oasis J.

60" pitch is the exact same on CX long-haul J minus the lie-flat seat option.

And consider that ANZ may have some good economy fares too when it enters the HK-LHR route at the end of october.

I thought ANZ were going into Gatwick too?

It's supposed to be LHR, subject to slot availability.

The $1000 is without tax, just wait till those taxes and surcharges add-on to the fare. The taxes/surcharges from LGW are quite expensive when I checked their fares...

Gatwick doenst really bother me. Cologne is going to be a winner IMHO, right between AMS and FRA.
60" is actually too generous for a low cost business service (I think I will have to bring my measuring tape again to confirm.....) and same as Cathay long haul.

My biggest problem will be that I need the long haul trips on CX to secure my status every year. My short haul will remain with CX and there I use all the perks, so for the time being i stay where i am (untill they start flying me to Cologne J return for 13K)

Futre I fares
 

I hope that even limited it will lead to I fares again in the US market with future city listed (Oakland and Chicago in the US). Will AA or CX finaly add ORD - HKG? Will CX offer a fare closer to theres and what about SQ out of SFO? THey are already less than CX anyway.

Yes. Passenger TAX is 20GBP for economy, 40GBP for business/first.
Passenger Service Charge is 7.60 GBP for LGW (13.00GBP for LHR).
These passenger service charge keep on rising, so my number may old one.

Surcharge is very interesting.

Is there really a demand for a non-stop HKG-CGN B747 ? I would be highly surprised if there were.

Yes, it's true that there are fast trains linking Cologne with Frankfurt, Dusseldorf and Amsterdam but very few of these actually stop at Cologne airport's rail station.

Airport selection by Oasis is clearly following the LCC model -- choose airports which provide incentives to airlines. Particularly for a "prize" international route. I've heard of some airports in the US offering 100% kickback of all costs for an international flight; still there are few takers. I wonder what incentives Oakland offered (if any).

At least Cologne airport does have a rail link, unlike some of the other LCC airports in the middle of nowhere -- so it could be much worse. The proximity to Bonn might help fill up the J seats, and for tourists Cologne is a great place to land ... so a pretty good choice of the available airports. Interesting that they did not choose Berlin, though (and perhaps telling).

What about safety issues with this new airline?(pilots, crew, aircraft, etc)

If they start flying Hong Kong to Oakland, maybe they can hook up with JetBlue for domestic US connections? JetBlue serves Boston, New York(JFK), Washington, DC(IAD), and Los Angeles(LGB)... :)

There's a lot of traffic between Hong Kong and the San Francisco Bay area... Come to think of it, does Oakland even have int'l arrivals? :confused:

Oakland is an international airport, it has flights to/from Mexico and during good years to several other countries in LA. In the past OAK has had flights to Europe, so there is some precedent.

NorthRhein-Westpahlia alone has 20 million inhabitants, bordering areas similar. This is the highest popualtion density area of Europe. It is not a hub, but neither are LGW and Oakland. Although my final destination is in Holland, I would take this flight.

Cologne has major insurance and media companies with China links and Duesseldorf 50 kms away a bunch of European/country corporate HQs ( Vodafone, Nokia, HSBC Trinkaus & Burkhardt etc. ). And not to forget the Telekom HQ in Bonn.

Should make some impact as DUS has no Asian longhauls at all. Nearest competitors are AMS, BRU and FRA.

BRU? I thought the last direct flight from Zaventum to Asia departed in 1998? :p

Ok, but technically it's possible. DUS lacks sufficient runway lenghts due to the typical German legal process marathons over any airport expansion, I believe.

Selling Well?
 

I saw that Oasis Hong Kong Airlines, which is preparing for an Oct. 25 launch, has said it sold an average of 1,100 tickets per day since theystarted takeing reservations two weeks ago.

Is this good overall for all? Will CX reveiw pricing to HKG as Oasis builds there own market?

having a bit more competition is never bad....

pretty amazed at 1100 tickets per day though... two weeks => more than 15,000 tickets. that should zip out avability for next couple of months or so...

Thought it was interesting that on the Oasis web site they promote their planes will be maintained by HAECO, which is part of Swire - although you have to click the HAECO link to see that. I guess Swire figures they will make some money from Oasis one way or another!

Lots of airlines have maintenance ops that are run strictly separately from the airline, and do most of their business with direct competitors of the parent organization. I suppose it makes for an economy of scale and efficient use of resources which nets to a benefit for the airline; it sure does open the door to some subtle conflicts of interest, though.

Not limited to HKG. I believe that AA's maintenance group does work on some of its US rivals. One reason why it has not been outsourced since that group has been very profitable for AA.

Maybe it will put some downward pricing pressure on CX and other airlines to benefit us all. I miss the 2x mileage days, last year at this time was double mileage, this year was +10k (r/t).

But the $1k HKD is a gimmick to cast an image on the general public's eyes esp only 30-40 seats per flight are eligible for that fare, evertyhing else is fairly close to other airlines' offerings.

One can only hope JKG will offer better fares in the future.

Maybe if Oasis comes to us makets as stated, CX will offer I fares to North America again.

We definitely need more "premium economy" seats in trans-pacific routes. Seems to work out pretty well for the current airlines that have them.

Just received the following email from Oasis:

I guess they're looking to fill those seats any way they can ahead of the launch date - certainly should assist in keeping all fares lower on the HKG-London route anyway!

I found some seats Nov/Dec
in economy for Adult
1 x 75.00 = GBP75.00 > Taxes/Surcharges GBP44.38 = GBP119.38
1 x 75.00 = GBP75.00 > Taxes/Surcharges GBP66.67 = GBP141.67

Q: HKG Security Service Fee - HKG GBP 2.31
HK: HKG Passenger Service Fee - HKG GBP 8.40
YQ: Fuel Surcharge - HKG GBP 33.67

Fares + Taxes Total GBP 261.05 That´s less than 500 USD !!!! and not 1000 USD !!!!

1 x 1,000 = HKD1,000 Taxes/Surcharges HKD634 = HKD1,634
1 x 1,000 = HKD1,000 Taxes/Surcharges HKD1,649 = HKD2,649

Adult - Q: HKG Security Service Fee - HKG HKD 33
HK: HKG Passenger Service Fee - HKG HKD 120
YQ: Fuel Surcharge - HKG HKD 481


Fares + Taxes Total HKD 4,283


1 x 1,000 = HKD1,000 Taxes/Surcharges HKD1,009 = HKD2,009
1 x 1,000 = HKD1,000 Taxes/Surcharges HKD634 = HKD1,634

Adult - YQ: Fuel Surcharge - LGW HKD 481
UB: UK Passenger Service Charge - LGW HKD 208
GB: UK Air Passenger Duty Economy - LGW HKD 320


Fares + Taxes Total HKD 3,643

looks like from Dec. the fees drop down by 640 HKD !

Oasis in CA
 

Is is now announced for June 07. Oasis will fly to first US location. They are coming 4 times a week to Oakland and by year end daily.

What will CX and others do about fairs? Will CX finally bring back I fares at least?

Fuel Surchange
 

As the cost of Aviation Fuel is now LESS then when OASIS started operations, how can they call it and justify a Fuel Surcharge ?

Hainan Airlines flies from PEK to BRU a few times a week using 767-300ERs. I think they have an all Economy configuration on those planes.