China Eastern, Qantas team up for new HK LCC
China Eastern Airlines and the Qantas Group (which owns the Jetstar Group) have entered into a new strategic alliance to take its successful low fare airline model to China with the creation of Jetstar Hong Kong.
April 1, 2012
By Donald Urquhart
China Eastern Airlines and the Qantas Group (which owns the Jetstar Group) have entered into a new strategic alliance to take its successful low fare airline model to China with the creation of
Jetstar Hong Kong.
Jetstar Hong Kong will tap the partners’ local knowledge, networks
and successful low cost carrier model to service short haul routes in Asia, including Greater China, Japan, South Korea and Southeast Asia, the duo said, adding that it will be the first LCC based in Hong Kong.
Subject to regulatory approval Jetstar HK services will start in 2013 with a fleet of three Airbus A320s, growing to 18 A320s by 2015. With a total maximum capitalisation of up to US$198 million
the shareholding will be equally held by China Eastern Airlines and Qantas Group.
Chairman of China Eastern Airlines, Liu Shaoyong said the airline was pleased to be extending its 20 year relationship with the Qantas Group. “We believe there are huge opportunities for the Jetstar low fares model throughout Asia, including Greater China, and are excited to be the first major Chinese carrier to bring this
travel option to the region,” said Liu.
“Cooperation with Qantas Group is a key step in China Eastern Airlines’ international expansion strategy and an excellent opportunity for China Eastern Airlines to develop low cost carrier
operations to complement its existing business model.