Jetstar still committed to Hong Kong venture

Jetstar still committed to Hong Kong venture
By admin


Despite a lengthy delay, Jetstar remains committed to its Hong Kong venture, with group chief executive Jayne Hrdlicka highlighting the pent-up demand for low fares in the market.

Speaking at the CAPA Aviation Summit, Hrdlicka admitted that Jetstar Hong Kong’s launch is taking longer than expected. The airline had originally been scheduled to take to the skies by the end of last year, but has faced a number of obstacles including opposition from Cathay Pacific, with the airline yet to receive regulatory approval.

Qantas, China Eastern and Hong Kong’s Shun Tak Holdings each hold a one-third stake in the carrier.

“Starting an airline is a complex and difficult undertaking,” Hrdlicka said.

“Jetstar Japan launched at the speed of light in under 11 months, but Hong Kong is taking a lot longer than we expected. But we are still very positive and passionate about the potential.”

Hrdlicka referred to statistics which showed that low cost carriers account for just 6% of Hong Kong’s total aviation market compared with 30% in South East Asia. She continued that research has shown that 80% of Hong Kong residents believe they would benefit from another airline while 70% believe that current airfares are too high and 76% believe that LCCs provide more opportunities for travel.

“All other Asian hubs have both full service and low cost carriers as home carriers while Hong Kong just has full service,” she said. “Hong Kong travellers simply don’t have access to the same low fares as Singaporeans and Japanese residents do. Hong Kong people believe they’re being denied an opportunity.”

If the joint venture is approved, the new carrier will release “huge pent-up demand” for low fares in Hong Kong, driving significant economic and social benefits for the local community, she concluded.

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