HONG KONG – The deadline to find a new buyer or investor in Oasis Hong Kong Airlines has passed, forcing liquidator KPMG to dismiss most staff, including pilots and cabin crew.
The liqiidator of the carrier, which collapsed on April 9, said there has been “substantive negotiations with several interested parties” and that there now was “no alternative but to reduce costs substantiallyâ€.
Jobs of all pilots, cabin crew and office staff were terminated, with a few retained to assist the liquidators.
About 700 people are believed to have lost their jobs.
Oasis founder Raymond Lee said the provisional liquidator’s decision to fire most Oasis staff would not hurt its chances of finding new investors.
“The firing of staff on Friday will not deter potential buyers to step in as white knight,” Lee told a local television station. “There are still a few companies and consortia who are interested.”
Lee also defended the business model of Oasis. “It’s not the key problem,” he said. “The major problem is a lack of capital. It would be better to run a budget airline with at least eight aircraft.”
