After years of sometimes bombastic rhetoric about how Qantas would control its Jetstar franchises in Asia through what would have been puppet managements the prolonged efforts to set up a Jetstar Hong Kong operation have been rejected by its authorities.
Jetstar’s application to operate a Hong Kong subsidiary has been rejected by Hong Kong’s Air Transport Licensing Authority. It’s a serious blow to Qantas’s significant investments in setting up a network of low cost trans border Jetstar franchises in Asia.
Qantas faces some substantial objections to its proposed ‘coordination’ arrangement with China Eastern from Australia’s competition guardian the ACCC, which has served notice that it proposes to deny its application its approval.
Scenario Consider the contrary proposition, that Jetstar Hong Kong should have been ’embraced’ by the SAR’s authorities and its prime opponent, Cathay Pacific, two years ago.
China Eastern 中国东方航空公司 , a partner in the much delayed Jetstat HK venture, is launching its own low cost carrier in the PRC.
After Hong Kong’s civil aviation DG said there may be no room for Jetstar HK at its airport, the SAR’s only low cost carrier, Hong Kong Express, has explained why it was the right idea in the wrong location.
Instead of being 'operational spares' as Qantas has absurdly claimed, we have a South China Morning Post story based on access to supposedly puppet partner, Shun Tak holdings, in which the losses are described as 'crippling'.
Jetstar Hong Kong might seem like it is in trouble, but isn't the real issue the looming lack of room for all airlines trying to serve the SAR?
The different approaches of Singapore and Hong Kong to a Jetstar franchise could be compared to speed dating versus prolonged pre-nuptial contract negotiations. Hong Kong is being hard to 'get', but there is official optimism in Jetstar that it will get 'got'
Macau tycoon Stanley Ho’s Shun Tak Holdings company has become a one third equal equity investor in the stalled Jetstar Hong Kong project with Qantas and China Eastern airlines.