Jetstar Hong Kong to fly next year

Budget airline Jetstar Hong Kong will begin operating next year with some of its rates 50% cheaper than full service options in regular airlines.

Jetstar Hong Kong, a subsidiary of Australia’s Qantas Group, is on track to start services next March but subject to regulatory approval. It fares are expected to be up to 50% cheaper to a number of destinations including mainland China, Japan, South Korea and South East Asia. Its fleet will consist initially of three Airbus A320s, a number that is expected to rise to 18 aircraft in 2015.

Jetstar Hong Kong could add billions of dollars a year to Hong Kong’s struggling economy, as well as several hundred skilled jobs. These added revenues will come mostly from tourist spending on hotels, shopping and leisure activities.

Research showed that 70% of Hong Kong’s residents believed airfares to-and-from the city were too expensive and 66% agreed low cost carriers would benefit the local economy.

“The reason low fares airlines are generally well-received in new markets is because of their ability to increase overall demand. In other words, rather than taking a share of the existing pie we make the pie bigger,” said Jetstar Group CEO, Jayne Hrdlicka

“We’ve had strong support from tourism operators who want to see lower fares and competition bring more visitors to Hong Kong, particularly in the price-sensitive leisure end of the market.”