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Jetstar Hong Kong Airways, the low-cost carrier (LCC) seeking regulatory approval from the Hong Kong government, said a shortage of landing slots at popular airports is one of the obstacles its operations face.
"We will avoid destinations which are already crowded and served by many of our competitors," said Nick Rohrlach, executive vice-president of Jetstar Hong Kong.
Bali, one of the most popular getaway destinations, would not be on the carrier's radar as the airport in Denpasar was severely congested, Rohrlach said.
On the other hand, it was in search of other less-visited resort islands in Asia such as Lombok, Indonesia, which have yet to be fully developed as tourist spots.
Mainland China, Japan and South Korea are also target markets for Jetstar Hong Kong.
Rohrlach said the carrier was looking closely at different destinations in the Yangtze River Delta, except for Shanghai, where the air rights have been taken by existing carriers.
However, competition is likely to provide headwinds for new entrants on the mainland.
"Mainland destinations like Chengdu, Chongqing, Hangzhou, Xiamen and Haikou are already subject to fierce competition and are at present invariably loss-making," said a report by aviation think tank Strategic Access.
Competition is stiff even in some second-tier cities, such as Hangzhou, Chengdu and Chongqing, which are served by at least three carriers already, the report said.
Apart from this, the competition from high-speed railways also limits the choice of destinations. "We will not tap into the market which falls into the three-hour train ride from Hong Kong," Rohrlach said.
China is the last area with significant traffic demand for budget carriers where their market share is below 7 per cent, compared with 17 per cent in Asia and 28 per cent in Europe.
The LCC market share in China, however, has come a long way from a mere 1 per cent in 2005.
Still, analysts have doubts if the LCC model will play out well in Hong Kong, since it is a high-cost city with only one airport with limited slots for landing.
But Jetstar Group, launched in 2004 and one of the leading Asian LCCs, is confident its cost-savings will give it the advantage in the city.
For example, the turnaround time for Jetstar aircraft - the time between parking and leaving the air bridge - is just 30 minutes, compared with one hour for a full-service carrier.
There are only four cabin crew on board every Jetstar plane, compared with five to six for full-service carriers. The reduced manning is because in-flight meal services need to be paid for by passengers.
Lastly, Jetstar pilots and cabin crew are trained to multi-task. For example, Jetstar pilots have to weigh the aircraft by themselves and decide how much fuel is needed. Cabin crew also clean the plane after passengers leave.
Jetstar HK, which is waiting for an air operator's certificate, will receive its first A320 from Airbus by the end of March, followed by an approval flight with the aviation watchdog, the Civil Aviation Department, in April. The first cabin crew training will be held on February 25 and pilots will be trained in March.


Jetstar Hong Kong seeks next tourist hot spots

Jetstar Group, one of Asia's leading budget carriers, is confident its cost-savings will give it the advantage in Hong Kong. Photo: Bloomberg

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New low-cost carrier plans to avoid congested airports, instead focusing on destinations which are less developed in the tourist market


Jetstar Hong Kong seeks next tourist hot spots

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}New low-cost carrier plans to avoid congested airports, instead focusing on destinations which are less developed in the tourist market

New low-cost carrier plans to avoid congested airports, instead focusing on destinations which are less developed in the tourist market