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Shun Tak Holdings has joined Qantas and China Eastern in deciding to end its involvement with Jetstar Hong Kong and has called for the establishment of the airline to be terminated.
As a result, all three shareholders in the grounded airline have now indicated they will invest no further funds in the proposed carrier.
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Shun Tak said it made the decision not to continue its investment after reviewing the Hong Kong Air Transport Licensing Authority (ATLA) judgement, which denied Jetstar Hong Kong an operating license because the airline did not meet the territory’s principal place of business test.
“The board had resolved not to further invest in the business of Jetstar Hong Kong and proposed to terminate its establishment and proceed with its winding-up,” Shun Tak said in a statement to the Hong Kong stock exchange on Tuesday evening.
“The company will further discuss this matter with the other two shareholders of Jetstar Hong Kong. The company does not consider that the winding-up of Jetstar Hong Kong would have any significant adverse impact on the financial and operational position of the group.”
Shun Tak announcement follows China Eastern’s move to cut its ties with Jetstar Hong Kong on August 14, and Qantas chief executive Alan Joyce’s declaration on August 4 his airline would not invest any more funds into the airline.
Jetstar Hong Kong chief executive Edward Lau said in a statement on August 13 the airline’s board was “continuing to assess all options, and will announce the next steps accordingly”.
jason
says:Noting the reasons behind the failure of this venture, I wonder if the very Hong Kong based airline that was against the venture AND that has benefitted from the cheap procurement the last A320s is shown the same restrictions when they apply for access to Australian skies, and for that matter Cathay are allowed no additional access via their metal given their objections..
Raymond
says:Jason – yep, exactly… what they dish out, we should reciprocate when it comes time.
andrew Ferguson
says:I think that would be very wrong. Just because the Hong Kong government has chosen that approach, I believe Australia that we 100% support the open skies policy and encourage airlines to have access to more airports such as Direct services to Canberra, Townsville and even potentially Hobart.