Hong Kong has sided with its flag-carrier and blocked the application of Jetstar to launch in the city, on the basis that the low-cost airline backed by Qantas and China Eastern does not meet the criteria that it be locally based.
The decision has dealt a potentially fatal blow to three years of efforts by Jetstar and Qantas, its brand owner. The Australian flag-carrier has been expanding its Jetstar brand across Asia by establishing joint ventures with other airlines, as it planned to do in Hong Kong.
Last year China Eastern became the first of China’s big airlines to launch its own budget carrier on the mainland by rebadging its China United subsidiary.
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