China Eastern Airlines (MU, Shanghai Hongqiao) says its board of directors has approved a resolution concerning the proposed closing down of Jetstar Hong Kong (Hong Kong International), a failed joint-venture between the Chinese carrier, Qantas (QF, Sydney Kingsford Smith), and Hong Kong-based property and transportation conglomerate, Shun Tak Holdings.
In a statement to the Shanghai stock exchange, the Chinese carrier said it would shortly be touch with Shun Tak and Qantas in regards to its proposal.
Following months of uncertainty, the Hong Kong Air Transport Licensing Authority (ATLA), in June, finally rejected Jetstar Hong Kong's application for an Air Services Licence (ASL) on the grounds that it does not comply with local law governing an airline's Principal Place of Business (PPB) - which must necessarily be in Hong Kong.
"The Board deeply regrets that the application for Air Transport Licence made by Jetstar Hong Kong has been refused," China Eastern said. "The Company looks forward that the relevant regulatory authorities of Hong Kong will provide a fair, open and rule of law business environment to global investors based on the principle of encouraging market competition."
