Thousands Stuck as Asian Budget Airline Folds

Thousands of passengers have been stranded in Hong Kong, London, and Vancouver with the collapse of Asian budget airline Oasis, the New York Times reports. In a sign that the industry's woes are spreading rapidly, the Hong Kong-based airline joins three US budget carriers to have gone under this month in the face of soaring fuel prices and economic jitters.

Oasis, which had planned to start flying to California this year, set itself up as the world's first long-haul budget airline when it launched in 2006, but was hit hard when fuel prices more than doubled in the following months. Experts warn the business model for cheap, long-haul carriers could now be on shaky ground, unless they pack in more passengers. (More airline stories.)