Low-cost airlines can still fly high

We all have a soft spot for budget airlines. They offer us a choice, which is rare in an industry ruled by intricate sets of inter-government agreements that tend to favor the few dominant players, many of which are government-owned.

For years, we in Hong Kong have been wondering why it should cost us nearly $300 to fly to Taiwan, which is only a little more than an hour away. We fret about the high price of air tickets for the 45-minute flight to the Philippines. Those who have children studying in England must learn to factor in the high cost of flying them home for the summer break on top of the school fees and living expenses.

We thought we saw a ray of hope when Oasis Airlines opened its doors some two years ago offering attractive discount fares on its long-haul flights to London and Vancouver. But the budget airline, the first in Hong Kong, came to a crashing end earlier this month with no white knight in shining armor coming to the rescue.