World's first long-haul budget airline finally takes off

Hong Kong - Hong Kong's Oasis Airlines, the world's first long-haul budget carrier, finally took off Thursday, a day after its maiden flight was delayed by Russia's last-minute refusal of overflight rights.

The carrier's inaugural flight left Hong Kong International airport at 1.21pm (0521 GMT) heading for London's Gatwick Airport.

"We've been informed by very responsible and reliable sources that we can definitely fly through the Moscow air space today," Oasis chairman Raymond Lee told reporters at the airport before the take-off.

Oasis chief executive Stephen Miller said the airline had no information on the flight cancellations.

Almost 300 passengers, including Lee and Miller, were forced to wait nearly six hours on board the plane Wednesday as it sat on the tarmac while officials tried to sort out the problem.

Eventually they were let off the Boeing 747 in the evening and told the flight would be rescheduled for the following day.

Lee admitted that the airline had learned of the refusal of the overflight rights an hour before the maiden flight was due to take off but said he had not informed passengers as management had believed the problem could be resolved swiftly.

While Lee insisted the airline had clearance from the Russian authorities, he said it only received the green light at around 8:00pm (0000 GMT) Wednesday and again after midnight, hours after the flight was due to fly at 1:00pm.

Lee said the withdrawal of approval from the Russian authorities came as a shock after more than a year of preparation.

"Every single document they've asked for had been supplied and that's why we were absolutely stunned and shocked that we were denied," he said, adding the Hong Kong authorities were following up the matter.

The incident was a severe embarrassment for Oasis, which had built up a huge amount of hype over the past few months, offering flights between Hong Kong and London for just 1,000 Hong Kong dollars (128 US dollars).

Lee would not quantify the loss of revenue due to the delay.

Miller dismissed suggestions that the initial hiccup of the inaugural flight would damage the airline's reputation.

"I don't think our reputation is damaged. We don't see it as a loss and we've shown that we care for our passengers and we look after them," he told reporters.

He said about 10 people had been put on a different flight to London Wednesday.

Oasis offered passengers who were local residents several hundred dollars in transportation costs and free food and accommodation for stranded international travellers. It also offered a full refund for some and a free flight for all passengers.

Despite sitting on the tarmac for nearly six hours with only water and sandwiches, British-born Deirdre Leung, a Hong Kong resident of 29 years, said the delay would not deter her from flying with Oasis again.

"We are going to be compensated quite well. I think I will recommend this to family and friends again because you are not penalised on a return flight," she said.

"I hope Oasis will be able to continue with this because the price is quite affordable," she said.

Agence France Presse

Some of their prices are really low compared to the big carriers like BA.

I think a lot of companies will have to look especially closely at their Business Class fares otherwise they`ll be losing busines to these budget airlines. I`ve seen prices being quoted on fares of certain routes having a price difference of up to a couple of thousand pounds between the budget and the main carriers for 1st class and business class.