oooops , sorry just realised this should have gone in the airlines section where someone has already posted this news
I refused to touch Oasis with a barge pole, because I don't believe the low cost model works for flights to South East Asia from the UK. It has been shown through the collapse of Phuket Air (Kuoni were rumoured to have 6,000 passengers booked on Phuket Air when they collapsed) and now Oasis that long-haul carriers would not be able to compete.
Basically, their headline fares (£75 one way) competed well. However, they didn't make money on those seats, they made money on the more expensive ones, and the business class seats (it's like the Business Class Seats on flights to New York subsidise the ridiculous £250 return fares in economy) - however, once people were asked to pay £500 return on Oasis's more expensive seats they turned to Cathay, BA, Virgin, or Air New Zealand - all excellent direct carriers whose fares start at £350 inc tax return.
Yet, people who travelled Oasis said they offered excellent service, food and entertainment. Doesn't seem very low cost to me! Low cost carriers thrive on 25 minute turnarounds and flying loads of sectors - Oasis had their Jumbo sit at Gatwick for 12 hours everyday - hardly utilising it well.
Air Asia will have more money, and if they do launch KL - Stansted will be able to sustain losses longer. But Malaysian Airlines offer fares of £500 - which included £200 tax. So you might be tempted to fly Air Asia if you can get a £250 return headline fare - but would you fly them if they were the same price as Malaysian? Or even Emirates or Qatar Airways?
The current airline that I'm confused about is Zoom Airways - my tube station has a poster advertising low cost flights to New York for £299 including tax - that's a good deal in August maybe, but not great for the rest of the year.
'Caveat Emptor' - buyer beware. I really think that flight prices won't be getting any lower long haul, prices are generally excellent, and in real terms, probably the lowest they have ever been. I don't trust new airlines!
Sam - my hubby used Zoom to fly to Canada a couple of years ago and said he couldn't fault them.
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