Cathay Pacific declares Jetstar Hong Kong’s application as breaching ‘Basic Law’

Sep 05, 2013 No Comments by

Cathay Pacific in a press release issued 05 September 2013 has declared that fledgling start up airline Jetstar Hong Kong’s application “would violate Basic Law and undermine Hong Kong’s economy”. Jetstar Hong Kong’s recent application for authority for an ambitious 129 routes to 13 countries from its proposed Hong Kong hub seems questionable, particularly when the carrier has not received any regulatory approval to commence operations.
Cathay Pacific states that:

“Approval of the application for a licence to operate in Hong Kong by Jetstar Hong Kong would be a violation of Article 134 of Hong Kong’s Basic Law because Jetstar Hong Kong does not meet the requirement that it must have its principal place of business in Hong Kong. That application was published in the Government of the Hong Kong Special Administrative Region Gazette and Cathay Pacific Airways can confirm that it has filed a formal objection to the application”

The Hong Kong based carrier sees Jetstar Hong Kong as being overall detrimental to the Hong Kong aviation industry and sees it as nothing more as a “franchise of a foreign airline which is also controlled by that foreign airline.”

Given these setbacks and Cathay’s determination to protect its own market, coupled with the dubious viability of entering an already well served market including LCCs, one has to question the persistence of the QANTAS Group in collaboration with China Eastern Airlines in pursuing what very may well be a costly failed experiment. It seems to draw parallels to the embarrassing and stalled “Red Q” project. The team behind Jetstar Hong Kong are either very confident they will overcome these obstacles or maybe they are just not that smart and following a pure flight of fancy. Based on the QANTAS’ Group previous effort with the “failed to launch” Red Q all A320 Premium Asian Airline the answer seems pretty obvious to anyone of reasonable intelligence.

Airline News, Cathay Pacific, Jetstar, QANTAS

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