HONG KONG: A major investor in Hong Kong-based budget airline Oasis said it had been unable to contact the carrier's management about a news report that huge debts will force it to stop flying Wednesday.

Teresa Yu, a spokeswoman for asset management firm Value Partners, which invested 30 million US dollars in the airline last year, said the company was trying to confirm the report in the Hong Kong Economic Times newspaper.

"The information that you have is the same as us. We heard about the rumour. We cannot reach the management either, we are waiting for an official announcement," Yu said.

The Economic Times reported a "rumour" that the company was struggling under debts of up to 1 billion Hong Kong dollars (128 million US) and would cease flying from Wednesday.

Phone calls to the Oasis main switchboard and the airline's communications department were not answered. The airline's public relations firm declined to comment but said it had been in contact with Oasis officials.

A spokeswoman for the Hong Kong Aviation Authority said two Oasis flights due in later Wednesday from London and Vancouver were still scheduled to arrive, and that two departing flights were still scheduled to leave.

Oasis launched in October 2006, offering one-way Hong Kong to London pre-tax fares of 1,000 Hong Kong dollars (128 US). It later added the Vancouver route. - AFP/ac