Chinese airlines’ battle against pilot attrition and wage rises has escalated, with Shanghai Airlines suing nine pilots for US$5 million in compensation because they want to leave the company. China Eastern, another Shanghai-based airline, suffered from pilots turning around aircraft and returning to their departure fields on dubious grounds of bad weather.

A sudden suspension of flights by Hong Kong Oasis Airlines may point to an upper limit on service levels for long-haul non-network carriers. As such airlines proliferate, with service ranging from sardine-style economy to all-business class, the failure of the Hong Kong company after 17 months shows that mixing streamlined non-network operations with full-service cabins, especially business class, is a tough strategy. Oasis had a service standard like that of many regular network airlines—but no network.

Hong Kong Oasis Airlines has suddenly stopped flying, has appointed a liquidator and is looking for a buyer, with ambitious mainland carrier Hainan Airlines an obvious possible investor. The sudden suspension of operations by the long-haul 747-400 operator followed failure of talks with one potential buyer — again, possibly Hainan.