Cathay seeks to block Jetstar HK launch

Cathay seeks to block Jetstar HK launch
By admin


Jetstar Hong Kong is forging ahead with its plan to be operational by the end of the year, but faces a significant obstacle in the form of flag carrier Cathay Pacific.

The low cost carrier, a joint venture between Qantas, China Eastern Airlines and Shun Tak Holdings, took a step towards the start of operations with the official lodgement of its Air Transport License Application (ATLA) on Friday.

However, Cathay confirmed it will object to the application, insisting the airline’s levels of foreign ownership contravene Hong Kong laws.

“Putting some of Hong Kong’s valuable and limited air traffic rights into the hands of a carrier that is controlled by a foreign airline would also be very damaging to the local aviation industry and the Hong Kong economy,” a statement said.

It will issue its response to the application within the allocated two week period.

Meanwhile, Jetstar Hong Kong appointed Shun Tak managing director, Pansy Ho, as its new chairman in a move expected to deliver enhanced local expertise, according to chief executive, Edward Lau.

“Jetstar Hong Kong is delighted to welcome Ms Ho as chairman,” he said. “Her leadership will help us strengthen and foster Jetstar Hong Kong to best cater to the needs and development of the local travel market.”

Lau declared that Hong Kong is on the brink of a low cost “revolution” set to mimic the shift in Japan’s aviation landscape.

“Twelve months into domestic LCC operations in Japan and the impact of successful LCC models like Jetstar is clearly evident.

“Jetstar Hong Kong is focusing on being this influential instigator of change in Hong Kong.”

Recent research of Hong Kong residents found that 84% would welcome more low cost carriers to the local aviation landscape, with 70% planning to travel with an LCC over the next 12 months.

Low cost carriers currently represent just 6% of all air capacity through Hong Kong International Airport.

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