Hit hard by surging oil prices and fierce competition from Cathay Pacific Airways, Oasis Hong Kong Airlines, the 17-month-old low-cost, long-haul carrier, ceased operations yesterday. Oasis CEO Stephen Miller said the airline applied for a voluntary liquidator and that two representatives of KPMG were appointed by the Hong Kong Court to oversee the liquidation. Miller did not reveal the company's financial performance, but it has been reported that Oasis had suffered HK$1 billion ($128.4 million) in losses since launching operations. He said it will continue to search for a new investor. According to widespread news reports in Hong Kong, China's HNA Group is interested in expanding its foothold there and is negotiating with Oasis. The budget carrier launched in October 2006 and was flying four 747-400s daily to London Gatwick and six-times-weekly to Vancouver. It was planning on flying to Chicago O'Hare, San Francisco, Berlin, Cologne/Bonn, Manchester, Milan Malpensa, Melbourne and Sydney. Miller claimed that it enjoyed 90% loads on its two operating routes. Cathay announced yesterday that it will offer a "special airfare" to passengers already booked on Oasis flights scheduled for the next two weeks. by Katie Cantle