Cathay Pacific fights to ground Jetstar
Cathay Pacific is fighting to keep Qantas-backed Jetstar out of Hong Kong
The Hong Kong airline is urging regulatory authorities in the SAR to reject Jetstar’s application to launch operations from the Asian city.
Hong Kong’s flag carrier claims that the budget airline would be in violation of the city’s constitutional law because its principal place of business is in Australia, even though it has a local shareholder and managers.
Jetstar Hong Kong is a joint venture between Qantas, Shanghai-based China Eastern and Shun Tak Holdings, the Hong Kong conglomerate founded by gambling and shipping billionaire Stanley Ho.
Jetstar Hong Kong last month appointed Pansy Ho, one of the richest women in Hong Kong and the daughter of Mr Ho, as its chairwoman.
Cathay Pacific argues that management control of Jetstar Hong Kong would rest in Australia with Jetstar and Qantas Airways.
"This means that Jetstar Hong Kong’s principal place of business would be in Australia, not Hong Kong," the airline said.
Approval of Jetstar’s application for a licence to operate services would, Cathay said, ”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”.
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