Airline News
Jetstar HK: Rejected
June 29th 2015
The Hong Kong Air Transport Licensing Authority (ATLA) has rejected Jetstar Hong Kong’s application for an air operator’s license. Read More » Jetstar HK is owned equally by Qantas Airways’ wholly-owned Jetstar Group, China Eastern Airlines and business conglomerate Shun Tak Holdings. The application was vigorously opposed by Cathay Pacific Airways and Hong Kong Airlines, who said Jetstar HK did not comply with Hong Kong law, which requires airlines to have their principal place of business in Hong Kong.
In its ruling last Thursday, ATLA essentially agreed with the objectors, saying that submissions and evidence presented showed that ultimate control of the airline would be in Australia and Mainland China. “Even though there is no dispute that the day-to-day management would be conducted in Hong Kong, and managed by the Jetstar Hong Kong CEO in Hong Kong, as the cases unequivocally indicate, that is not sufficient to establish and meet any principal place of business criteria,” the regulator said in its 153-page ruling.
Jetstar HK chief executive, Edward Lau, said he was “extremely disappointed” by the ATLA ruling, once more reiterating the proposed airline’s principal place of business was Hong Kong, noting local businesswoman Pansy Ho was its chairman and there was a local management team in place. “We will take time to review and consider our next steps,” Lau continued. Qantas chief, Alan Joyce, said the decision to reject Jetstar HK’s license served the vested interests of those already flying, leaving the travelling public worse off.
Cathay’s director for corporate affairs, James Tong, said the decision against Jetstar ensured Hong Kong’s economic assets, such as its air traffic rights, would be used for the benefit of the people and the economy of Hong Kong. “It is the right decision for Hong Kong,” he concluded.
