Hong Kong (XFN-ASIA) - Hong Kong budget carrier Oasis Airlines
said it has sold a stake to a local asset management firm for 30 mln usd, with
the funds to be used to buy aircraft and expand routes.
The airline, which specializes in direct, long-haul flights, said Value Partners will be taking a stake of 5-10 pct and the money will be used partly to buy 14 used Boeing aircraft for a proposed eight routes by 2011.
It currently operates three planes with another due by the end of the year and a fifth in early 2008.
"Our agreement enables Oasis to further strengthen Hong Kong's leading position as an international hub, while tapping the enormous growth in the Chinese market," Oasis chairman Raymond Lee said.
Lee said the airline would be seeking more investment in future.
"We are not ruling out other strategic opportunities as they come out," he told reporters.
Value Partners co-founder Cheah Cheng Hye said the company sees it as a long-term investment in the airline as the company is optimistic about its prospects.
Lee said Oasis plans to list its shares on the Hong Kong stock exchange in the next three to five years, hoping to raise 100 mln hkd through the initial public offering.
Oasis, which will be celebrating next month its first anniversary, has carried 275,000 passengers so far with a load factor, or a percentage of seats filled, at around 90 pct.
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.