The world's first long-haul budget airline was embarrassingly forced to cancel its maiden flight between Hong Kong and London today after Russian officials refused it permission to fly over their airspace.

The Oasis Hong Kong Airlines Boeing 747, with fares starting at £75 one way plus tax, was meant to take off from Hong Kong early this morning, UK time, for Gatwick.

But after a six-hour wait for take-off, the 300-plus passengers - including the company's top executives - left the plane when it became clear that the flight would not be given clearance to fly over Russia.

Steve Miller, the Oasis chief executive, took the microphone himself to announce the cancellation to the airline's very first customers.

"It’s extremely unfortunate and we are very disappointed. We are doing all we can to resolve the problem," said Ken Chad, the Oasis commercial director.

"We are in talks with the Russia authorities. We paid for the overfly rights and we got the approval code, and yet at the last minute, they held us up. We have not had any explanation."

The first return flight from Gatwick was meant to be tomorrow night but that is now in doubt. A spokeswoman for the airline said: "The flight has not taken off from Hong Kong and we still don’t know when it will take off. It may be tomorrow but we have not had that confirmed yet."

Ten per cent of the 278 economy seats are being offered at the lowest price with fares rising to a maximum of £315 in high season. Oasis is also offering a business class return starting at £1071, including tax. Virgin, one of its main competitors, charges £380 return including taxes while BA charge £550.

With a round trip costing just £261, including taxes, passengers could be forgiven for thinking that things on board will be a little sparse but the airline is offering seat back televisions, two hot meals, blankets and pillows and complimentary tea, coffee and water.

The new carrier will run four flights a week increasing to a daily service between Gatwick and Hong Kong by the end of November.

Since tickets went on sale just over a month ago Oasis has sold 20,000 seats.

Traditionally, airlines have struggled to make the budget airline business model work on long-haul routes. However, Oasis hopes to overcome this with the extra revenue it expects to make from its business cabin - BA has historically made 40 per cent of its profits on transatlantic flights.

Explore World News

• World Agenda

• Iraq News

• US & Americas News

• Europe News

• Middle East News

• Afghanistan News

• Asia News

• Africa News

• Ireland News

Times Recommends

• Should Knox’s trial even have reached the courtroom?
• 'Was it real?' The US bailout nightmare
• Iranian opposition plays the long game