Tag Archives: Jetstar Hong Kong

QANTAS Airways restores the Perth-Singapore route

QANTAS Airways (Sydney) today (June 26) restored the Perth-Singapore route.

Flight QF71 departed this afternoon from Perth bound for Singapore, one of five return services that QANTAS will operate each week with its Boeing 737-800 aircraft. With a flying time of just over 5 hours, the flight is scheduled to land at 5.20 pm.

In other news, The QANTAS Group issued this statement concerning the rejection of the Jetstar Hong Kong application:

The QANTAS Group will work with its fellow shareholders in Jetstar Hong Kong to review the enterprise, following the Air Transport Licensing Authority’s decision to reject the local carrier’s application to establish an operation in Hong Kong.

Jetstar Hong Kong – a joint venture between Shun Tak Holdings Limited, China Eastern Airlines and the QANTAS Group – was announced in March 2012. Each partner holds a one-third economic share while the Hong Kong based Shun Tak Holdings has 51 per cent of the voting rights and ultimate control. Seventy percent of the board is from Hong Kong.

At December 31, 2014, the QANTAS Group investment in Jetstar Hong Kong was carried at $10 million.

The low cost carrier’s application for a licence to operate scheduled air services has been under consideration by the local licensing authority for over two years.

Expressing disappointment at the decision, CEO of the QANTAS Group Alan Joyce said: “This is as disappointing for the shareholders as it is for the travellers that Jetstar Hong Kong planned to serve.

“It’s the travelling public who have lost out, because the message from this decision is that Hong Kong appears closed to fresh aviation investment even when it is majority locally owned and controlled.

“At a time when aviation markets across Asia are opening up, Hong Kong is going in the opposite direction. Given the importance of aviation to global commerce, shutting the door to new competition can only serve the vested interests already installed in that market.”

Copyright Photo: Steve Bailey/AirlinersGallery.com. “RetroRoo”, the pictured Boeing 737-838 VH-XZP (msn 44577) in the retro 1971 livery, reopened the route.

QANTAS aircraft slide show:

Jetstar Hong Kong to start operations in mid-2013 with three Airbus A320s

China Eastern Airlines (Shanghai) and the QANTAS Group (Sydney), which owns the Jetstar Group, have entered a new strategic alliance to bring Asia’s leading low fares airline model to China with the creation of Jetstar Hong Kong.

According to both parties, “Jetstar Hong Kong will combine the partners’ local knowledge, networks and successful low cost carrier model to service short haul routes in Asia, including Greater China, Japan, South Korea and South East Asia. It will be the first low fares airline based in Hong Kong.”

Subject to regulatory approval Jetstar Hong Kong services will start in 2013 with a fleet of three Airbus A320s, growing to 18 A320s by 2015.

Jetstar Hong Kong is underpinned by a total maximum capitalization of up to $198 million. The shareholding percentage in Jetstar Hong Kong will be equally held by China Eastern Airlines and QANTAS Group, which will be equal partners in the Joint Venture. The maximum exposure for each partner is $99 million over a three year period.

In other news, Jetstar Japan will welcome Century Tokyo Leasing Corporation as its fourth shareholder in the new low fares airline venture.

The transaction was concluded when Mitsubishi Corporation transfered half of its current 33.3% voting rights stock in Jetstar Japan to Century Tokyo Leasing Corporation on March 27, 2012.

The new partnership reinforces Jetstar Japan’s financial foundation by adding an additional stockholder and creating a strategic operational tie-up ahead of the start of services on July 3, 2012. This transaction will not affect the total capital or capital reserves.

With this transaction, holding ratios in Jetstar Japan will be Jetstar Group with 33.3%, Japan Airlines Company, Ltd. with 33.3%, Mitsubishi Corporation with 16.7% and Century Tokyo Leasing Corporation with 16.7% on a voting rights basis.