OST-2007-27248 - Oasis Hong Kong - Hong Kong-Oakland/Chicago

Oasis Hong Kong Airlines Limited hereby requests an exemption to permit Oasis to engage in the scheduled foreign air transportation of persons, property and mail between Hong Kong, SAR, on the one hand, and the coterminal points Oakland, California, and Chicago, Illinois, on the other hand. Oasis requests that any exemption granted by the Department pursuant to this application remain in effect for a period of at least one year. Oasis intends to commence scheduled service to Oakland on June 1, 2007, and requests prompt approval of this application so that marketing of its proposed service may begin immediately.

Oasis' plans call for expansion beyond London to North America and other European points. Oasis' first North American service will be operated to Oakland International Airport and will commence June 1, 2007. Service will initially be operated four times weekly, increasing to daily service on July 1, 2007. Service to Chicago will be instituted at a future date. To operate these flights. Oasis plans to use additional B747-400 aircraft it will acquire very shortly, bringing its fleet to five B747-400 aircraft. Current plans call for expansion to not only Oakland, but to Chicago as well as destinations in Canada, Germany, and Italy where Oasis' passengers will be able to connect with other leading low-fare carriers for travel beyond the gateways.

Flights will be scheduled to provide passengers with maximum convenience, and are expected to depart Hong Kong at 1730 and arrive in Oakland at 1400 the same day, providing sufficient time for dinner and evening activities in the Oakland-San Francisco Hay Area. Return flights will depart Oakland at 1650 and arrive in Hong Kong at 2255 the next evening. Passengers will thus be able to enjoy a full day in Hong Kong or Oakland on their departure day before boarding their flights. Oasis will also transport belly cargo between Hong Kong and Oakland as required by shippers. Oasis has secured all required slots at Hong Kong International Airport for its proposed schedule.

Oasis is a new carrier and is Hong Kong's first and only low-fare carrier. It is the first earner in Asia to operate exclusively to long-haul international destinations. Oasis began operations in October 2006, when it instituted nonstop scheduled services between Hong Kong and London (Gatwick) using state-of-the-art B747-400 aircraft specially configured to provide business and economy passengers with a uniquely comfortable and enjoyable experience.

Oakland is the acknowledged low‑cost hub of Northern California 2 with 213 daily departures offered by 15 airlines, including 142 on Southwest Airlines and 15 on JetBlue Airways, which will provide Oasis's passengers with convenient low‑cost air transportation options to any market within the U.S. Oakland is therefore the ideal airport for Oasis's type of operation which places emphasis on passenger comfort at fare levels substantially lower than those available on other carriers offering the convenience of non‑stop service. Oasis's London flights have apparently been extremely well received by travelers in that market, and Oakland believes Oasis's service to Oakland will similarly be very well received by both Bay Area travelers bound for Hong Kong as well as Hong Kong travelers to the Bay Area.

Exemption from 49 USC § 41301 to engage in scheduled foreign air transportation of persons, property, and mail between Hong Kong, on the one hand, and the coterminal points Oakland, California, and Chicago, Illinois, on the other hand.

The record indicates that approximately 88.2% of Oasis' shares are owned by citizens of Hong Kong, with the remaining reported stock owned by citizens of the United States. Furthermore, Oasis' Chairman and all members of its Board of Directors are citizens of Hong Kong.

Oasis is requesting amendment of its existing exemption to permit it to exercise the full authority granted to Hong Kong carriers under the U.S.-Hong Kong bilateral aviation agreement, and for which Oasis has been designated. Oasis' current exemption limits it to serving Oakland, California, and Chicago, Illinois. Oasis has been designated by the Hong Kong Government for service to any U.S. point, however, and it wishes to have this authority in place so that future U.S. services can be planned and implemented without delay. Oasis will operate services between Hong Kong and the United States with B747-400 aircraft.

Amend existing exemption from 49 U.S.C. § 41301 to permit Oasis to engage in scheduled foreign air transportation of persons, property and mail between Hong Kong, via intermediate points, to a point or points in the United States, and beyond.