Jetstar Hong Kong (Hong Kong International) could take on yet another local Hong Kong-based investor in a bid to satisfy revised local shareholding requirements needed to secure its Hong Kong Air Operator's Certificate (AOC), Air Services Licence (ASL) and necessary designation.
Following resistance to an initial licence application by founders Qantas (QF, Sydney Kingsford Smith) and China Eastern Airlines (MU, Shanghai Hongqiao) in 2013, Shun Tak Holdings, a shipping and property conglomerate in Hong Kong and Macau founded by Macau casino tycoon Stanley Ho, was taken onboard as a new 33% local investor. However, Australia's The Age newspaper claims Shun Tak's 33% shareholding may not be sufficient forcing Jetstar to consider taking on yet another local investor.
On the back of the report, Cathay Pacific (CX, Hong Kong International) has reiterated its opposition to the carrier's licensing on the grounds that even with a greater than 51% local shareholding, the airline would still not meet Hong Kong's constitutional law requirements.
"Shareholding is not the issue," Cathay's chief operating officer, Rupert Hogg, told the Age. "It is that your headquarters are here and the decisions are made here. The shareholding is inconsequential to the criteria of principle place of business. All legal advice we have had is that Jetstar would not qualify."
Local law had originally stipulated that airlines must be incorporated in the city and have their principle place of business in Hong Kong to be considered "local" under the law. However, in wake of the controversy, regulator the Transport and Housing Bureau did state in June 2013 that it wouldn't process any further start-up applications pending a review of the law which will now likely scrutinize shareholding structure, among other unspecified factors.
The start-up had intended to launch services in mid-2013 but on the back of regulatory delays nine new A320-200 (sl)s on order from Airbus (AIB, Toulouse Blagnac) have now been parked in Toulouse Blagnac.
