Basic Law statute a sticking point in inquiry on Jetstar Hong Kong's licence bid

A public inquiry to consider low-cost airline Jetstar Hong Kong’s application for an air transport licence allowing it to operate scheduled air services in Hong Kong has centred on arguments about interpretation of the Basic Law, which led to different understandings of whether Jetstar’s principal place of business was Hong Kong.

Cathay Pacific Airways objected to Jetstar’s application in September 2013, arguing  the airline,  though incorporated in Hong Kong, was a franchise of Jetstar in Australia and its management control rested in Australia with Jetstar and Qantas Airways. 

Cathay said that meant Jetstar Hong Kong did not meet the Basic Law requirement of having its principal place of business in the city. 

Jetstar Hong Kong’s lawyer Johnny Mok argued at an inquiry hearing yesterday that the company had its final control in Hong Kong as its headquarters was in the city. 

“Five out of seven board members are Hong Kong permanent residents, and four of them were nominated by Shun Tak Holdings,”  Mok said.

“So far, its employees and senior management all work and live in Hong Kong. Why is the principal place of business not in Hong Kong?”

He added that Cathay was also ultimately controlled by  John Swire & Sons  in Britain  but that did not affect the carrier’s principal place of business being in Hong Kong.