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The struggle for JQ Hong Kong intensifies

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markis10

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The decision to link increased traffic rights to Australia for Hong Kong airlines with regulatory approvals for Jetstar Hong Kong demonstrates the budget arm of Qantas does not comply with Hong Kong law, says Cathay Pacific chief operating officer Rupert Hogg.
Cathay Pacific has been a vigorous opponent of the establishment of Jetstar Hong Kong, on the basis that real control of the airline will be in Australia rather than Hong Kong and it will therefore not comply with Hong Kong’s Basic Law.
Mike Mrdak, the secretary of the Australian Department of Infrastructure and Regional Development, last week said the government did not want to give Cathay Pacific and other Hong Kong carriers increased traffic rights into Australia unless Australian carriers were able to use Hong Kong as a hub and Jetstar Hong Kong was approved.
“The very fact that Jetstar Hong Kong and Jetstar Australia have linked their two businesses by leveraging the setting up of Jetstar Hong Kong with traffic rights in Australia seems to make it pretty clear that Jetstar’s principal place of business is not Hong Kong, but Australia,” Mr Hogg told analysts on Wednesday.
“By default I think they have made the case that we would make that it doesn’t comply with the Basic Law.”
Comment is being sought from Jetstar.
Jetstar owns only one-third of Jetstar Hong Kong, with the other partners being China Eastern and Hong Kong-based Shun Tak Holdings. The airline has sold three of its nine aircraft and the board is considering the sale of another three due to the lengthy delays in receiving regulatory approvals, in part due to Cathay Pacific’s objections.
“Hong Kong has taken us much longer than we expected, but we are still passionate and committed about Jetstar Hong Kong,” Jetstar Group chief executive Jayne Hrdlicka said last week. “If approved Jetstar Hong Kong will address huge pent up demand for low fares in the Hong Kong market.”


Read more: Cathay weighs in on Jetstar's Hong Kong tussle
 

docjames

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It really is just looking like a bottomless money pit at the moment for the JQHK investors.
 
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samh004

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I find it interesting that CX is so quick to say that an Australian government department is being controlled by Qantas, considering Qantas hasn't really had any favours from the Australian government. It's great though that the Department of Infrastructure and Regional Development has tied traffic rights to this issue though, because up until now it seems CX has had no worries being the big bully.

As I said elsewhere, I can't imagine QF will be using JQ-Aus to tell JQ-HK to do that much, considering they have their own issues, but perhaps a 787 flown into HK would stick it to CX just a little bit more. With (flight) connections it could prove really popular, so I can see why CX is doing everything it can.
 

yohy?!

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lol quite funny to see CX being beaten at their own game for a change - they have their own problems mounting with looming pilot strikes

its farcical that hong kong airlines and hk express can exist with pretty much the same ownership structure as JQHK yet JQHK somehow doesn't comply?
 
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