New | Budget airline Jetstar HK's final investor pulls out
Ill-fated low-cost carrier that had dreams of opening up the skies over the city closes its doors as Shun Tak resolves to wind up carrier
It's curtains for Jetstar Hong Kong as its last investor, Shun Tak Holdings, on Tuesday pulled out of the ill-fated budget airline, following the footsteps of already departed China Eastern Airlines and Qantas Airways.
"After reviewing the decision and potential course of actions, the group has resolved not to further invest in the business of JHK and proposed to terminate its establishment and proceed with its winding-up," said Shun Tak in its interim report to the stock exchange, ruling out any possibility of the conglomerate pursuing the project alone.
China Eastern, Qantas and Shun Tak each held a third of an airline that never received clearance to take-off.
Jetstar Hong Kong, whose fleet of nine new Airbus A320 planes dwindled to one by June in a prolonged regulatory wait, has sold its last plane to a Chinese leasing firm, sources told the South China Morning Post. The group did not respond to requests for comments on its operational status.
Qantas chief executive Alan Joyce said at the group's results conference in Australia earlier this month that it was writing off its stake in the venture and taking a A$21 million hit, while China Eastern has said its own exit from the venture "had no material adverse impact" on its financial conditions.
In its interim results onn Tuesday, Shun Tak said its stake in Jetstar Hong Kong "is relatively insignificant to the results of the group", which has businesses ranging from property to hospitality. It reported a 65 per cent decrease in profit attributable to shareholders to HK$387 million for the first half of this year.