Australia’s Jetstar optimistic about JV in Hong Kong

Will consider taking a local investor to get around residency problem.

Low-cost airline Jetstar Airways based in Melbourne remains confident it will get approval for its Hong Kong joint venture, Jetstar Hong Kong, by the end of this year and said it can meet the principal-place-of-business requirements.

Jetstar has not ruled out taking on a local investor after the 50-50 partnership with China Eastern Airlines came under criticism because neither airline is headquartered in Hong Kong. Sources said talks have been underway with local investors for some six months.

Jetstar is a subsidiary of Qantas, Australia’s national airline, while China Eastern is based in Shanghai. China Eastern Airlines is China’s second largest carrier in terms of passenger numbers.

Qantas chief executive Alan Joyce said they have welcomed local investors to Jetstar franchises in the past and wouldn't rule out welcoming the right local investor in Jetstar Hong Kong.

"We see a lot of potential in this market for a low-cost carrier, and particularly for a trusted brand like Jetstar. And it's not surprising the market sees it the same way. "

Sources said the Hong Kong government is reviewing a provision in the city's constitution before making a decision on whether to grant an operating license to Jetstar Hong Kong.