Cathay objects to "foreign" invasion by Jetstar HK

Cathay objects to "foreign" invasion by Jetstar HK
By admin


Cathay Pacific has lodged a formal objection to the launch of Jetstar Hong Kong, arguing that the low cost start-up violates HK regulations.

The carrier claimed Qantas has publicly admitted that management control of the airline would reside in Australia. Cathay said that would contravene Hong Kong's Basic Law which requires the carrier to have HK as its "principal place of business".

"In addition to violating Basic Law, approval of this application would set a dangerous precedent by granting control of Hong Kong's hard-negotiated sovereign air traffic rights to a carrier that is nothing more than a franchise operation controlled by a foreign airline," Cathay said in a statement.

Allowing Jetstar HK to operate would also encourage attempts to "grab Hong Kong's air traffic rights by other foreign airlines based in rival aviation hubs to Hong Kong".

Cathay added it would "damage the HK aviation industry" and "severely weaken Hong Kong's ability to negotiate with foreign government's for the expansion of Hong Kong's air services".

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