HK rejects airline Jetstar鈥檚 bid to operate
Print Edition
HONG Kong yesterday rejected budget airline Jetstar Hong Kong’s application for a licence to operate, saying its primary place of business was not in the city.
The carrier is a three-way joint venture between China Eastern Airlines, Australia’s Qantas and Macau casino tycoon Stanley Ho’s Hong Kong-based conglomerate Shun Tak Holdings.
Under Hong Kong law, an airline will only be given an operating licence if its principal place of business and center of its decision-making is in the city.
“The authority decided that Jetstar Hong Kong did not comply with the basic law ... in having its principal place of business in Hong Kong and that Jetstar Hong Kong’s application be refused,” an Air Transport Licensing Authority statement said.
“Jetstar Hong Kong cannot make its decisions independently from that of the two foreign shareholders,” it said.
Shun Tak paid US$66 million for a third of the airline in 2013 to help it set up locally, after it applied for regulatory approval in 2012.
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