Holidaymakers stranded by airline collapse

Hundreds of British holidaymakers, including a number of schoolchildren, were left stranded today after a low-cost airline went into liquidation.

The Britons were trying to get on to other flights after the financial collapse of Oasis Hong Kong Airlines, whose services included Gatwick-Hong Kong flights.

This morning's Oasis flight into Gatwick landed on schedule, but tonight's 8.40pm Gatwick to Hong Kong service was cancelled, as were all future Oasis flights.

"There are hundreds of people stranded, including children returning after the Easter school holidays," said a spokeswoman in London for Hong Kong carrier Cathay Pacific.

Cathay has announced special ticket arrangements to help Oasis passengers, who are being offered a £160 one-way economy-class fare between London and Hong Kong in a deal lasting until April 23.

Cathay operates four flights a day between Heathrow and Hong Kong.

"We are looking at the possibility of putting on extra flights," the Cathay spokeswoman said.

Cathay Pacific chief executive Tony Tyler said: "We will be doing our utmost to help people out, and will certainly do everything in our power to co-operate with the Hong Kong government and other carriers to minimise the impact on the travelling public."

Oasis began flights to Gatwick in October 2006, with tickets starting as low as £75. The carrier also operated Hong Kong to Vancouver flights.

For a time, Oasis flourished but ticket prices went up and the airline faced strong competition from other airlines flying in and out of Hong Kong.

Earlier this week, it was reported that Oasis was struggling under debts of around £64 million as it fought to cope with surging fuel costs.

Auditor KPMG was appointed provisional liquidator of Oasis today and said it was working to assess Oasis's "financial and operating situations".

KPMG said all of Oasis's scheduled flights were now cancelled and it was helping customers make other travel arrangements as quickly as possible.

The liquidator added that it was liaising with other airlines and encouraged Oasis passengers to check the airline's website www.oasishongkong.com and to call 00852 3628 0628, 0844 482 2323 or 01293 596633.

Cathay Pacific said Oasis ticketholders should call a 24-hour hotline on 0208 834 8893 for details of Cathay Pacific's special ticketing arrangements. Details can also be found at www.cathaypacific.com.