Regional Round-Up
Hurdles still facing Jetstar Hong Kong launch
March 1st 2013
The launch of budget carrier, Jetstar Hong Kong, has moved a step closer with the appointment of a chief executive in the city. But it still has significant hurdles to overcome. Read More »
The carrier, a joint venture between Qantas Airways and China Eastern Airlines (CEA), is awaiting regulatory approval, including an air operator’s certificate. Not the least of its challenges, however, is to prove Hong Kong as its principal place of business when none of its investors are from the city.
Edward Lau, the former managing director of the Hong Kong office of express operator, TNT, was appointed CEO last month and joins fellow executives, chief financial officer, Howard Cheung, and independent non-executive director, Ronnie Choi Mow-sang.
Qantas chief executive, Alan Joyce, said Qantas was not taking the outcome for granted. But he believed there was a compelling case for a new low-cost airline in Hong Kong.
“The complexities in the launch [of Jetstar Hong Kong] is that it needs a lot of different approvals. We have to get approvals associated with designation in Hong Kong, approvals associated with getting the right routes and we also have to get the AOC,” said Joyce.
He added partner CEA, which is a 51% shareholder in Jetstar Hong Kong, had recently received anti-trust approval for the partnership. Joyce said he was “confident” the new carrier would launch services this year.
The Hong Kong LCC plans to fly short-haul services to Greater China, Southeast Asia, Japan and South Korea. It will start with three A320-200s and expects its fleet to grow to 18 aircraft by 2015.
