Cathay Pacific CEO has no interest in Oasis deal

LOS ANGELES (Reuters) - Cathay Pacific Airways Ltd (0293.HK: Quote, Profile, Research, Stock Buzz), Hong Kong's dominant airline, is not interested in acquiring budget carrier Oasis Hong Kong Airlines, Cathay Pacific's chief executive said on Wednesday.

Oasis said earlier on Wednesday that it had halted flights and would go into liquidation after just 17 months in the air, as record high fuel prices and stiff competition triggered heavy losses.

"We have no interest in the business model that they've got," Cathay Pacific Chief Executive Tony Tyler said on the sidelines of a news conference in Los Angeles.

Oasis, which took off in October 2006, said in January 2007 that it planned to go public on the Hong Kong stock market by late 2009, but the carrier is now looking for investors to acquire the company or buy its assets.

Tyler said he never believed Oasis would be successful.

Jet fuel prices -- which often account for the biggest share of airlines' costs -- have nearly doubled since Oasis began operations to nearly $140 a barrel, putting pressure on carriers to raise fares so they can shore up profits and maintain payments on newly acquired aircraft.

Tyler said all airlines, including Cathay Pacific, have been pummeled by rising fuel prices.

"We are fortunate that our top line, our revenue line, has been growing very well," the CEO said.

Tyler said the company's increase this year of flights to India -- expected to reach 35 a week by June -- is coming at an opportune time.

(Reporting by Deena Beasley; Editing by Andre Grenon)