Qantas in Hong Kong budget airline deal

Posted: March 26, 2012 in Airlines
Tags: , , ,

Qantas of Australia and China Eastern Airlines are to launch Hong Kong's first budget airline

(From the Financial Times)  Qantas of Australia and China Eastern Airlines are to launch Hong Kong’s first budget airline in a landmark deal for foreign participation in the Chinese aviation industry.

Jetstar Hong Kong will be a $198m joint venture in which Qantas and China Eastern hold equal stakes. It plans to start flying next year.

It will be the first time that major Chinese and foreign airlines have together established a passenger airline, with previous partnerships limited to cargo joint ventures or codeshare agreements.

In establishing a budget carrier, Qantas and China Eastern are targeting an under-served segment of the Chinese market. Although air travel has risen in China, the country has little in the way of discount options.

Hong Kong Express, partially owned by China’s Hainan Airlines, has said it wants to convert itself into a budget carrier. Oasis Hong Kong offered low-fare long-haul flights before it stopped flying in 2008 after incurring big losses……

See the full story here

© The Financial Times Limited 2012

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