The Cranky Flier » Oasis Hong Kong

Airlines We Lost in 2008

CF — Wed, 31 Dec 2008 16:25:30 +0000

It’s time once again for the third annual edition of “Airlines We Lost.” This was a pretty active year, as you can probably imagine. Sadly, my wish last year for Alitalia to be on this year’s list has not come true. That airline soliders on while others have not been so lucky to have a government behind them to prop them up. As I said, last year, let us hope that all the former employees of these airlines find new jobs with ease. I’m probably taking Friday off, so I’ll be back again Monday. Happy New Year!

AlpiEagles – January 3, 2008

We were barely into 2008 when AlpiEagles became the first airline of the year to shut down. To be honest, I don’t know much about these guys, but if I couldn’t include Alitalia, I had to at least find one Italian airline. A Google search found some references that make me think it wasn’t much of a surprise that these guys went under. In fact, I’m somewhat amazed they lasted as long as they did.

Boston-Maine (Pan Am) – February 29, 2008

It’s not often that I’m happy to see an airline go out of business, but this is most certainly one of them. When the Pan Am name and colors were slapped on this two-bit outfit flying old 727s into backwater airports, it was an embarrassment. To make things even worse, this airline was effectively a union-buster that was given the Pan Am name and routes when the previous version of Pan Am was shut down by the parent company. Earlier this year, the DOT put out a scathing report that the airline was financially unfit, lacked proper management oversight, and didn’t follow rules.

Big Sky – March 8, 2008

Big Sky was a sad loss, at least for those who relied on the airline to get around the upper Midwest for years. Big Sky was acquired by Mesaba’s parent, but when Mesaba was sold to Northwest, the parent company wanted out of the airline business. The 19-seaters weren’t making much money, so it was time to call it quits. I remember when I was at America West and we signed a codeshare with Big Sky. There were very few airports they served that I’d even heard of before, but they were the lifeline for the people who lived in those places.

Adam Air – March 18, 2008

If anyone is actually surprised by this one, you must not pay much attention to aviation accidents. Adam Air came out of Indonesia and did a good job of convincing people not to fly it. There were a number of accidents and incidents over its relatively short life span, and ultimately the Indonesian government mercifully shut them down. We should all be able to sleep easier at night knowing that this airline is gone from the scene.

Aloha Airlines – March 31, 2008

For me, this is the saddest failure of the year. If this were the Academy Awards when they show the people who died in the last year, Aloha would undoubtedly get the loudest applause. The oldest airline to fail last year, Aloha succumbed to a brutal competitive environment thanks to the entry of go! into the Interisland Hawaiian market. Lawsuits have dragged on, but it appears they have recently been settled with the understanding that go!, the very airline that killed Aloha, will rebrand as Aloha. This was so unpalatable that even the judge put a temporary stop to it.

ATA – April 3, 2008

Though ATA was an airline that many people hated, I actually never had a bad experience flying them. In fact, I always had good experiences. They reached their zenith in the early 2000s as they grew their Chicago and Indianapolis hubs under now-United drone John Tague but collapsed mightily soon after. Southwest picked up the remains, and the airline limped along for awhile, but ultimately, the owners bought a couple other airlines and shut down the original. A sad end for an airline with a long history.

Skybus – April 4, 2008

Ah yes, remember Skybus? It seems like it was only around for a few minutes, so you may have forgotten them by now. The idea was to offer ultra low fare flights originally only from its Columbus hub. Columbus? Yeah. That might go a long way to explain why it didn’t work. But this airline called it quits before it actually had to. In fact, there was money left in the bank, but the management decided it just wasn’t going to work in the end. By this time next year, we’ll probably have forgotten completely that they ever existed.

Skyway – April 5, 2008

Poor little Skyway, better known as Midwest Connect, died because of Midwest’s insistence on not actually flying any airplanes itself. Skyway was Midwest’s wholly-owned regional subsidiary, but Midwest decided it would rather have SkyWest operate the routes instead. So while Skyway lives on as a ground operations company, it no longer has any planes. Then again, Midwest doesn’t have many of its own planes left either.

Oasis HongKong – April 9, 2008

Like Skybus, Oasis HongKong had a meteoric rise only to come crashing down hard. The airline was running long haul, low fare flights between Hong Kong and both London and Vancouver. Apparently, it’s fares were too low, because one day it just disappeared. Many have argued that the long haul, low fare model doesn’t work, though Air Asia X is currently going to do its best to prove that hypothesis wrong. (Nonexistent labor costs help, by the way.)

Eos Airlines – April 26, 2008

There’s a special place for Eos in my eyes, because I interned with the airline during business school, long before it got started. In fact, it was just me and David Spurlock in a Palo Alto office working on getting funding for the airline back in 2003. The experience was great, but high fuel prices, a very small niche market, and, according to others, weak management, did the airline in. With fuel at today’s prices, it undoubtedly could have held on longer, but it’s not clear that it would have survived.

Nationwide Airlines – April 29, 2008

I’m sure there were a few thousand airlines in Africa that failed this year, but none had a higher profile than Nationwide. This airline, based in South Africa, grew to have a fairly sizable operation that even served London. In 2007, Nationwide was shut down for regulatory non-compliance, but it briefly came back. Of course, a temporary shut down like that is just as bad as being shut down for good, so it did just that and decided to call it quits.

Far Eastern Air Transport – May 12, 2008

I don’t know really know a ton about Far Eastern Air Transport except that their tails had FAT spelled out in big block letters. That’s good comedy. I was surprised to find that this airline was actually around for fifty years, primarily as a very strong domestic carrier in Taiwan. Increased competition (in the air and on the rails) put this airline into financial trouble, and it finally called it quits after struggling to the right the ship for awhile.

Silverjet – May 30, 2008

Like Eos, Silverjet tried to do the all-premium airline model and failed miserably. I’m told Silverjet had a very nice facility at London’s Luton airport, but that wasn’t enough to make it successful. Locating the airline at Luton probably didn’t help much either. Toward the end, there was all kinds of drama. It was said that a Middle Eastern firm would pump money into the airline and refocus it, but that never came through and the airline ran out of luck . . . and money.

Champion – May 31, 2008

Though Champion flew charters with its 727 fleet toward the end, its 2 letter code “MG” alludes to its roots as MGM Grand Air. MGM was a luxurious airline flying between LA and New York, but Champion did a lot of sports charters and some leisure work as well. In the end, the aging fleet wasn’t competitive in the charter market and the airline simply opted to shut down and go quietly into the night. Fortunately, it didn’t go away until after delaying the Spurs to a playoff game against the Lakers. Thanks, guys.

Air Midwest – June 30, 2008

Little Air Midwest was another casualty in the 19 seat aircraft market that really took a hit this year. This airline had been owned by Mesa for several years, and ultimately Mesa opted to completely shut down its 19 seat operation. I had the chance to fly Air Midwest on one of its little Beech 1900s from Yuma to Phoenix, and I certainly had no complaints. Then again, the weather was good that day. Were it not, I might have had a different opinion of the little airline.

ExpressJet (branded service) – September 1, 2008

Let’s get one thing clear. ExpressJet still exists and is still flying around as Continental Express and as a charter airline. The piece that died was the “branded” ExpressJet operation that was set up to fly point-to-point between smaller cities; sort of a Southwest Express in my mind. If Aloha’s failure tugged at the heartstrings, this one bothers the brain. This model still looks interesting to me, especially with lower fuel prices and a different aircraft type. I just think ExpressJet was ahead of its time on this one.

Zoom – August 28, 2008

This quirky airline had a very strange setup. The original airline was Canadian and began flying Transatlantic from Canada. Then they wanted to fly back across the Atlantic to the US from the UK so they set up a UK subsidiary to do the work. Flights went from London to places like San Diego, where no other nonstop service existed. The idea may have made sense in someone’s head, but it didn’t work at all. They collapsed under their own weight.

XL – September 12, 2008

You knew XL was set on being a low cost carrier when it decided that letters were too expensive and shortened its name from Excel. The British low cost charter operation focused on shuttling pasty white Brits to sunspots, but apparently it wasn’t concerned about getting them back when it stranded fifty thousand travelers after its shutdown. Another 200,000 had future bookings so this was likely a more expensive winter than many had planned.

AeroCalifornia – October 4, 2008

Wait, didn’t these guys already shut down? You know it, but somehow the Mexican airline didn’t make my 2006 list. AeroCalifornia operated aircraft so old they were actually flight tested by Charles Lindbergh (um, maybe not), but they were considered airworthy enough to fly to the US until 2006 when it first shut down. The airline made a brief comeback with only domestic Mexican operations, but that again ended abruptly when they ran out of money.

Sterling – October 29, 2008

Sterling quickly rose to be a massive low fare airline in Scandinavia and Europe in general, especially after acquiring Maersk. I flew Maersk once and loved the product, but Sterling had plenty of ownership shifts and never fully found its groove. It didn’t help that its most recent owners were Icelandic, not exactly a good place to be from a financial perspective these days. Cimber Air says it’s going to resurrect the airline, but, well, we’ll see about that.

European – November 30, 2008

Oh man, am I finally done? European wouldn’t get a mention here except for two things. First, it was one of the last operators (if not the last) of the 737-200 in Europe. And second, it operated for Palmair, an airline I really enjoyed learning about this year. Palmair was surprised by the failure of European, but it has found an aircraft from Jet2 to pick up the slack for now. Meanwhile, European will probably disappear quietly without any fanfare at all.

[Airlines We Lost in 2007]
[Airlines We Lost in 2006]

Random Bits of Info

CF — Mon, 30 Oct 2006 18:24:00 +0000

I was out of town over the weekend, so I didn’t have time to write. Here are a few random bits of info:

Looks like it only took Oasis Hong Kong one extra day to get approval to fly in Russian airspace. The airline is now operating regularly. We’ll see how long it takes for them to burn through their cash.
Ryanair is again looking to Poland for expansion. The latest route, Shannon (Ireland) to Lodz begins December 4. Many of Europe’s low cost carriers have looked toward eastern Europe for expansion, and Poland has benefited tremendously.
In news of the weird, Air Astana, one of Kazakhstan’s main airlines, changed it’s two letter airline code from KC to 4L. The old one apparently stood for “Kazakhstan Carrier” and the new one clearly stands for nothing. When asked why they made the change, they said it was “the latest development in Air Astana’s rapid growth road to becoming a world class airline.” Uh, ok. Updated 8/5/08 @ 11p – I’ve been informed (two years late) that they actually switched from 4L to KC. Makes much more sense, no?
Skybus appears to be getting closer to launch. The airline ordered 65 new Airbus narrowbodies to be delivered beginning in late 2008. They plan to start operations next year with aircraft on short term lease until the new planes arrive.
Mesa will begin flights between Las Vegas and both Visalia and Merced (California) on November 19. The flights will be operated as US Airways Express.
On November 14, Aeromexico will begin nonstop flights between Chicago/O’Hare and Guadalajara. The lack of extensive air service between Chicago and Mexico has always surprised me. Chicago has the United States’ second largest Mexican population.
Cyprus’ AJet will mercifully be shut down. You might remember the airline under its previous name, Helios, when it had a 737 crash after sitting on autopilot with nobody at the controls for two hours. The airline has had multiple safety issues since then.

Uh Oh-asis Hong Kong

CF — Wed, 25 Oct 2006 17:45:00 +0000

I’ve been meaning to blog about these guys for awhile, but after their inaugural flight between Hong Kong and London was scrapped today due to the Russians, I figured it was time to start writing. (Sounds like an old Cold War novel, huh?)

Let’s start with the basics. These guys announced a few months ago that they were going to be a long haul, low fare carrier based in Hong Kong. You can see their website here. The idea was to get some used 747-400 aircraft and fly them to major destinations from Hong Kong for really cheap. The first route was to London/Gatwick, and as I mentioned, it was supposed to start today.

They announced the airline officially in September with two class service being offered. In coach, called economyOasis, they offer average legroom, personal screens running movies in loops, and two hot meals. The intro fare was a staggering GBP75 each way (about $140 using today’s rates).

In businessOasis, you get an old generation business class seat and presumably better service starting at GBP470 each way (that’s just shy of $900 today). It’s definitely a great deal.

There were conflicting reports as to how well they were selling initially (and whether or not they could even cover their costs with those fares). I had heard rumors that they were selling well and they were severely restricting the cheap seats, but those rumors were blown out of the water on October 3 when they put out a two week sale giving away all seats on every flight until November 30 at those low advertised rates. That tells me they aren’t doing very well.

Then we get to the launch from Hong Kong today. The plane is buttoned up, it’s a full house and everyone is ready to go. Departure time passes . . . still not going anywhere. Finally after a few hours, they give up and cancel the flight. Nope, it wasn’t a mechnical or crew issue. It was all the Russians’ fault.

Since I’m not Ian Fleming (the legendary James Bond creator) , I couldn’t make this one up. Even though the paperwork had all been filed properly, at the last minute, the Russians denied the airline the rights to overly Russian territory on the way to London. There’s no mention of why they refused them the rights, but it could involve some convoluted plot to destory the American capitalists. See, I told you I’m not good at making things up . . . . Seriously, it’s probably just bureaucratic politics at its finest. They’ll probably get approval soon enough.

If you go to the Hong Kong website (their UK website strangely has no mention of it), you’ll see this statement:

Oasis Hong Kong Airlinesâ€™ statement â€“ Oct 25 2006
Hong Kong, October 25, 2006

Despite all approvals being received by Oasis Hong Kong
Airlines and all paperwork being in order, we sincerely regret that the
airline’s inaugural flight has been delayed by Russian over-flight authorities
for as yet unexplained reasons.

Further, we regret and apologise for the inconvenience
caused to our passengers and are doing our utmost to resolve the issue directly
with the Russian authorities.

Passengers have been provided with compensation &
accommodation and will be advised immediately the airline receives further
information on this matter.

Our shareholders and senior executives onboard the flight
deeply regret this unforeseen event and share our passengers’
disappointment.

Ok, that sucks. No question about it. But why can’t they just fly around Russian airspace until this matter gets resolved? There has to be a reason, but I don’t know what it is. Seems like that would be the easiest short term solution to avoid the PR nightmare that’s about to unfold.