Jetstar Hong Kong not a genuine local carrier, says Cathay in bid to ground budget airline
Budget airline's application for services in the city is challenged on the ground that it violates the Basic Law and is not a genuine local carrier
In a fresh attempt to stop a budget airline from taking off in Hong Kong, Cathay Pacific Airways said yesterday that it has filed an objection to Jetstar Hong Kong's application to run scheduled services in the city on the ground that it violates the Basic Law and is not a genuine local carrier.
Founded by Qantas Airways and China Eastern Airlines last year, Jetstar Hong Kong has been burnishing its local credentials of late to pre-empt just this kind of resistance. In June, Shun Tak took a 33 per cent stake in Jetstar Hong Kong and its managing director, Pansy Ho Chiu-king, was last month appointed chairwoman of the planned budget airline.
Without naming Shun Tak, Cathay said that having a Hong Kong-based shareholder did "not determine management control or principal place of business under the Basic Law".
"Any local franchise operation has local managers. This does not stop it from being controlled from overseas. Management control of the Jetstar Hong Kong franchise clearly rests in Australia," Cathay said.
Management control of Jetstar Hong Kong clearly rests in Australia
Rejecting Cathay's assertion that Jetstar Hong Kong was controlled by a foreign airline, the budget carrier's chief executive Edward Lau said: "Jetstar Hong Kong is managed locally and we are confident of meeting all regulatory approvals, including principal place of business."