Two years after it was filed, Hong Kong regulators have rejected an application for an airline licence by Jetstar Hong Kong, a budget airline joint venture owned by Australia's Qantas and China's China Eastern Airlines with local partner Shun Tak Holdings.
Objections to the licence application were lodged by Cathay Pacific Airways, Dragonair and Hong Kong Airlines.
The HK Air Transport Licensing Authority said Jetstar's majority foreign ownership meant its main place of business/control was not in Hong Kong but in mainland China and Australia.
Under Hong Kong law, airlines operating out of Hong Kong are required to have their 'principal place of business' in the city.
Management 'misjudged' position
Jetstar Group chief executive Jayne Hrdlicka admitted management had misjudged the application but remained "patient and long minded" about its prospects. At one point, Jetstar owned nine Airbus A320 aircraft and had planned to add another nine.
Shun Tak joined as a partner in 2013 to put a 'more local face' on the airline. Shun Tak boss Pansy Ho has been the carrier's chairman since then and the Hong Kong company holds 51 per cent of the voting rights plus the right to appoint four of seven directors despite its one-third economic interest.
If approved, Jetstar Hong Kong had planned to fly short-haul routes to destinations in mainland China, Japan, South Korea and southeast Asia.
Two years after it was filed, Hong Kong regulators have rejected an application for an airline licence by Jetstar Hong Kong, a budget airline joint venture owned by Australia's Qantas and China's China Eastern Airlines with local partner Shun Tak Holdings.
Objections to the licence application were lodged by Cathay Pacific Airways, Dragonair and Hong Kong Airlines.
The HK Air Transport Licensing Authority said Jetstar's majority foreign ownership meant its main place of business/control was not in Hong Kong but in mainland China and Australia.
Under Hong Kong law, airlines operating out of Hong Kong are required to have their 'principal place of business' in the city.
Management 'misjudged' position
Jetstar Group chief executive Jayne Hrdlicka admitted management had misjudged the application but remained "patient and long minded" about its prospects. At one point, Jetstar owned nine Airbus A320 aircraft and had planned to add another nine.
Shun Tak joined as a partner in 2013 to put a 'more local face' on the airline. Shun Tak boss Pansy Ho has been the carrier's chairman since then and the Hong Kong company holds 51 per cent of the voting rights plus the right to appoint four of seven directors despite its one-third economic interest.
If approved, Jetstar Hong Kong had planned to fly short-haul routes to destinations in mainland China, Japan, South Korea and southeast Asia.
