AJ decries 'protectionism' in HK as JQHK fails to gain clearance

[yohy?!]

Alan Joyce decries 'protectionism' in Hong Kong as Qantas fails to gain clearance

Qantas chief executive Alan Joyce has lashed out at what he has described as blatant protectionism in Hong Kong after a recent decision to block Jetstar Hong Kong's bid to set up flying operations in the territory.In signalling Qantas would walk away from its long-held ambitions to expand into one of Asia's financial capitals, Mr Joyce said on Tuesday that one of the biggest threats for airlines operating in a global market was governments "penalising and taking away fair competition".
Despite Jetstar Hong Kong having majority local ownership and a Hong Kong chairman and chief executive, Mr Joyce said it had taken two years before the Chinese territory's government had ruled that the fledgling budget airline did not qualify as a local carrier despite it sharing similarities with incumbents Cathay Pacific and Hong Kong Airlines.

I don't often agree with AJ but he has valid concerns here I think - the Hong Kong Basic Law is notoriously vague (partly causing the Umbrella Riots and other fun events). The hurdles applied to JQHK would have stymied all the other so called 'local' airlines in HK that ultimately have their boards in China or the UK.

Perhaps this may lead to a preference for QF to hub through anywhere else to HK with greater capacity and cut all possible through traffic to CX and KA?

 

[smit0847]

Alan Joyce decries 'protectionism' in Hong Kong as Qantas fails to gain clearance


Perhaps this may lead to a preference for QF to hub through anywhere else to HK with greater capacity and cut all possible through traffic to CX and KA?

I dont think CX will lose much sleep over this- they have far more flights to Australia than QF do to HKG/China

 

[N860CR]

A little hypocritical that Joyce was begging for protection for Qantas at home, however now complains that a foreign country is providing exactly that and blocking his latest money losing venture.

 

[samh004]

A little hypocritical that Joyce was begging for protection for Qantas at home, however now complains that a foreign country is providing exactly that and blocking his latest money losing venture.

If my main competitor on home soil was effectively the combined interests of New Zealand, Singapore and UAE I'd probably be asking for protection from my government too.

Fair threat from the 3 governments who effectively own VA and keep shovelling money into it to keep it afloat as a viable contender against QF. Without them, VA might not have had the strength to become what they are now so quickly, or to continue developing into a Full Service Carrier (on all fronts).

That said, hypocritical or not, it does seem to be accurate?

 

[MEL_Traveller]

Cathay was established in the 1940s... bit late now to bring them under the 'local ownership' laws no? Hong Kong airlines - that's china operating an airline in china. I can't see the issue with that.

Jetstar HK? An australian controlled airline wanting to break into the Chinese domestic market. Fine, if you also agree to Singapore Airlines launching a full service carrier for domestic routes here in AU, and to fly the lucrative AU-USA market.

 

[cambriamarsh]

If my main competitor on home soil was effectively the combined interests of New Zealand, Singapore and UAE I'd probably be asking for protection from my government too.

Fair threat from the 3 governments who effectively own VA and keep shovelling money into it to keep it afloat as a viable contender against QF. Without them, VA might not have had the strength to become what they are now so quickly, or to continue developing into a Full Service Carrier (on all fronts).

That said, hypocritical or not, it does seem to be accurate?

The NZ government isn't funding Air NZ. If VA cost them too much I think they would either sell down or try to get the board to see commercial sense. I wonder what the shareholders agreement says about funding.

 

[moa999]

. Fine, if you also agree to Singapore Airlines launching a full service carrier for domestic routes here in AU, and to fly the lucrative AU-USA market.

There is nothing stopping SQ setting up a 100% Sing owned domestic subsidiary - it just needs to have an AOC and have local staff... Indeed Tiger Australia was 100% Singaporean owned until sold to Virgin.

If it has 50% Australian ownership (or some legal artefact that does the same job - eg 80% foreign owned Virgin) it could fly internationally.

Australia has a very open Airline ownership system.

 

[Isochronous]

A Chinese company is not a HK company. You cannot use the terms HK and Chinese interchangeably.

 

[amaroo]

The NZ government isn't funding Air NZ. If VA cost them too much I think they would either sell down or try to get the board to see commercial sense. I wonder what the shareholders agreement says about funding.

Depends on your definition of funding - 1989 Gov privatised Air NZ ... 2001 NZ Gov provides NZ$885M rescue package and ends up 80% ownership ... 2013 the NA Gov sells down to 53% ownership.

 

[samh004]

Cathay was established in the 1940s... bit late now to bring them under the 'local ownership' laws no? Hong Kong airlines - that's china operating an airline in china. I can't see the issue with that.

Jetstar HK? An australian controlled airline wanting to break into the Chinese domestic market. Fine, if you also agree to Singapore Airlines launching a full service carrier for domestic routes here in AU, and to fly the lucrative AU-USA market.

If a new law comes into effect and you've been doing things the old way for decades, it doesn't mean you can avoid the new law...

 

[MEL_Traveller]

If a new law comes into effect and you've been doing things the old way for decades, it doesn't mean you can avoid the new law...

No - but under some circumstances you'd have a hard time changing it. I assume there was an exception carved out for CX if it contravenes the current laws.

 

[Isochronous]

No - but under some circumstances you'd have a hard time changing it. I assume there was an exception carved out for CX if it contravenes the current laws.

Correct - there is a grandfathering provision.

 

[N860CR]

If my main competitor on home soil was effectively the combined interests of New Zealand, Singapore and UAE I'd probably be asking for protection from my government too.

Fair threat from the 3 governments who effectively own VA and keep shovelling money into it to keep it afloat as a viable contender against QF. Without them, VA might not have had the strength to become what they are now so quickly, or to continue developing into a Full Service Carrier (on all fronts).

That said, hypocritical or not, it does seem to be accurate?

I'm not arguing that it's right or wrong, but if Joyce wants to be taken seriously then he needs to stand a consistent ground.

 

[cambriamarsh]

Depends on your definition of funding - 1989 Gov privatised Air NZ ... 2001 NZ Gov provides NZ$885M rescue package and ends up 80% ownership ... 2013 the NA Gov sells down to 53% ownership.

I agree about 2001 when the govt bailed them out. I don't think that would happen now.