Hong Kong authority rejects application by low cost carrier Jetstar

[HONG KONG] Hong Kong's Air Transport Licensing Authority on Thursday said it had rejected the application by Jetstar Hong Kong Airways Ltd (JHK) to operate scheduled air services in the city.

It was about two years after the low-cost carrier, backed by Australia's Qantas Airways, Shanghai-based China Eastern Airlines and Shun Tak Holdings, lodged an application for a licence.

The Hong Kong authority said Cathay Pacific Airways Ltd , Hong Kong Dragon Airlines Ltd, Hong Kong Airlines Ltd and Hong Kong Express Airways Ltd had objected to Jetstar's application.

Having considered all relevant information and the objections presented at the public inquiry, the authority said it decided that JHK's application be refused as JHK did not comply with the basic law of having its principal place of business in Hong Kong.

REUTERS