HONG KONG - Budget carrier Oasis Hong Kong Airlines' inaugural flight took off for London on Thursday, a day late due to problems getting Russia's permission to fly over its airspace, the airline said.

Oasis Hong Kong Airline's Boeing 747 takes off at the the Hong Kong international airport Thursday, Oct. 26, 2006. The inaugural flight for budget carrier Oasis Hong Kong Airlines took off for London on Thursday, one day late because of problems getting permission from Russia to fly over its airspace, the firm said. The Oasis jet carrying 300 people was supposed to depart Wednesday afternoon, but the flight was canceled after the passengers spent five hours on the plane waiting for it to take off. [AP]

The Oasis jet carrying 300 people had initially been scheduled to depart Wednesday afternoon, but the flight was canceled after passengers spent five hours waiting aboard the plane.

The airline's executives said Russian officials had withdrawn permission at the last minute for Oasis to fly over the country's airspace.

Oasis Chairman Raymond Lee told reporters that Russia reissued its approval late Wednesday, just two hours after all the passengers had been sent home or to hotels.

"We've been approved from a very responsible and reliable source that we can definitely fly through the Moscow airspace today," Lee said.

He insisted the airline wasn't to blame for the delay, because it had negotiated with Russian authorities for more than a year to ensure it had the over-flight rights.

"That's why we were absolutely stunned and shocked that we were denied," he said, adding that he still didn't understand what the problem was, and that the company was waiting for Russia's explanation.

"Maybe some bureaucratic error," or "maybe some mistakes that led to their revoking of that permission" was behind the delay, Lee said.

Passengers on Wednesday's canceled flight were being offered HK$500 (US$63; euro50.08) and a free roundtrip ticket as compensation, an Oasis statement said.

Oasis has grabbed headlines by promising low-budget long-haul fares, while not skimping on in-flight services. Its business model relies on outsourcing catering and call centers.

Oasis is charging fares as low as HK$1,000 (US$128; euro102) before taxes for a one-way direct flight to London _ one-third of the lowest price currently available. Flying business class starts at HK$6,600 (US$848; euro675) one-way.