Hong Kong  - The Hong Kong government said Monday that it would review its procedures for licensing new airlines after budget airline Oasis collapsed, stranding thousands of passengers.

However, Deputy Secretary for Transport Esmond Lee told legislators there would be no compensation scheme set up for customers who lose out when an airline goes bust.

About 700 pilots, flight attendants and other employees lost their jobs when Oasis, which flew between Hong Kong and London and Vancouver, went into liquidation in April.

More than 30,000 passengers holding tickets valued at 300 million Hong Kong dollars (38.5 million US dollars) also lost out and some have little expectation of retrieving their money.

The airline, which offered one-way fares for as little as 128 US dollars between London and Hong Kong, suspended all flights after going into voluntary liquidation 18 months after its launch. (dpa)