Hong Kong carriers join fight against Jetstar
A week after Cathay Pacific issued a blistering attack on Jetstar's plans, Hong Kong Airlines and sister carrier Hong Kong Express confirmed they have lodged filings with authorities in the Asian city opposing the budget airline's application for the right to begin scheduled services.
"Any extra opposition would make it more difficult [for Jetstar Hong Kong]," said Andrew Orchard, an aviation analyst for CIMB in Hong Kong.
"But Cathay would still be the one that the regulators would be most in contact with."
Unlike Cathay, Hong Kong Airlines and Hong Kong Express have not publicly detailed reasons for their opposition.
"We believe that the government will make the appropriate judgment based on the long-term development of the local aviation industry and the overall economic interests of Hong Kong," they said in a statement.
Jetstar Hong Kong is a joint venture between Qantas, Shanghai-based China Eastern Airlines and more recently Shun Tak Holdings, the listed conglomerate founded by Macau gambling billionaire Stanley Ho. The entry of a Jetstar offshoot to one of Asia's most valuable aviation hubs would pose the biggest challenge to Chinese-backed Hong Kong Express, which is in the process of reshaping itself into a low-cost airline.
Cathay Pacific has claimed that Jetstar Hong Kong will be in violation of the city's constitutional law because its principal place of business is in Australia, even though it has a local shareholder and managers.
Hong Kong's flag carrier has also argued that the plan to set up operations is an attempt by a foreign carrier to gain access to the city's pool of air-traffic rights without a "fair exchange of value to Hong Kong".
Cathay subsidiary Dragonair has filed its own objection with Hong Kong's Air Transport Licensing Authority.
However, Jetstar Hong Kong chief executive Edward Lau has dismissed the claims it is controlled by a foreign airline, and has reiterated that the carrier is confident of gaining all regulatory approvals.
Qantas had originally targeted the middle of this year for the launch of the budget offshoot, but delays in gaining regulatory approval have meant it is unlikely to get off the ground until at least December.
Despite the growing opposition, Mr Orchard said he believed Jetstar Hong Kong would eventually win approval from regulators, though he admits it might require changes to its plans to get it across the line.
Jetstar Hong Kong boosted its bargaining position last month when it named Pansy Ho, one of the richest women in Hong Kong and the daughter of Mr Ho, as its chairwoman.
Qantas, Shun Tak and China Eastern each own a third of Jetstar Hong Kong.
Frequently Asked Questions about this Article…
Jetstar Hong Kong is a proposed low-cost carrier joint venture. According to the article, Qantas, Shanghai-based China Eastern Airlines and Shun Tak Holdings each own one-third of the business.
Several Hong Kong carriers — including Cathay Pacific, Hong Kong Airlines and Hong Kong Express — have lodged filings opposing Jetstar Hong Kong. Cathay has publicly criticised the proposal on legal and competition grounds, while Hong Kong Airlines and Hong Kong Express have said they expect the government to consider the long‑term development of the local aviation industry and Hong Kong’s overall economic interests.
Cathay Pacific has claimed Jetstar Hong Kong would breach the city’s constitutional law because its principal place of business is in Australia. Cathay also argued that the plan would let a foreign carrier access Hong Kong’s pool of air‑traffic rights without a ‘fair exchange of value to Hong Kong.’
The article says Cathay Pacific (and its subsidiary Dragonair), Hong Kong Airlines and Hong Kong Express have lodged objections or filings with Hong Kong authorities opposing Jetstar Hong Kong’s application to begin scheduled services.
Jetstar Hong Kong’s chief executive Edward Lau dismissed claims that the carrier is controlled by a foreign airline and said the carrier is confident of gaining all regulatory approvals.
Yes. The article notes mounting opposition has made approval more difficult. Qantas had originally targeted a mid‑year launch, but regulatory delays mean it is unlikely to get off the ground until at least December.
Aviation analyst Andrew Orchard said extra opposition would make it more difficult for Jetstar Hong Kong, but he expects Cathay would be the carrier regulators would be most in contact with — suggesting Cathay’s objections could be particularly influential.
The article reports Jetstar Hong Kong boosted its bargaining position when it named Pansy Ho — a prominent Hong Kong businesswoman and the daughter of Stanley Ho — as its chairwoman.
Call 1300 880 160
Start a chat
Schedule a call
