Stanley Ho takes stake in Jetstar Hong Kong

Shun Tak Holdings now owns 33.3% of the budget airline.

The stake, sold by Qantas and China Eastern Airlines that co-own Jetstar Hong Kong, will help pave the way for Jetstar Hong Kong receiving an operating license.

Qantas and China Eastern will each own 33.3% of the airline. The total capitalization of Jetstar Hong Kong remains unchanged at US$198 million.

A local investor like Ho could help Jetstar Hong Kong obtain an operating license from Hong Kong. Failure to get the license has delayed Jetstar Hong Kong’s operations, slowing down the airline's desire to tap travel demand in China with a discount carrier.

Jetstar Hong Kong will focus on flying to secondary Chinese cities and will have about 18 aircraft. The first Hong Kong-based budget airline will offer 50% lower airfares on average than those by full-service rivals.