Qantas and China Eastern Airlines launch budget airline
Qantas and China Eastern Airlines are to launch Hong Kong’s first budget airline in a $198 million joint venture.
Jetstar Hong Kong plans to start flying next year with both airlines holding equal stakes, reports the Financial Times.
It will be the first time that major Chinese and foreign airlines have established a passenger airline together.
Other Chinese carriers having been looking to launch low cost options as Spring Airlines is currently the only Chinese budget carrier.
Qantas’ budget airline, Jetstar, is Asia’s fastest-growing low-fares network by revenue, with airlines in Singapore, Japan, Vietnam, Australia and New Zealand.
Alan Joyce, Qantas chief executive, told the Financial Times that the Hong Kong venture was "a historic opportunity to continue the successful expansion of the Jetstar brand in this region".
"We see tremendous potential for the Qantas Group in Asia and we’re looking forward to working more closely with China Eastern Airlines to deliver on it," he added.
Subject to regulatory approval, Jetstar Hong Kong will take off in 2013 with a fleet of three Airbus 320s, aiming for 18 A320s by 2015. It will offer short-haul flights to Japan, South Korea, south-east Asia and greater China – a region that includes mainland China, Hong Kong and Taiwan.
Diane
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