Qantas (QF, Sydney Kingsford Smith) and China Eastern Airlines (MU, Shanghai Hongqiao) have both reduced their respective shareholdings in stalled start-up, Jetstar Hong Kong (Hong Kong International), from 33% each, to 24.5% each while Shun Tak Holdings, a shipping and property conglomerate in Hong Kong and Macau, has increased its stake in the carrier from 33%, to 51%.
The Sydney Morning Herald said in its report that the change in ownership occurred towards the beginning of the year and is a likely additional measure aimed at gaining operational clearance for the carrier.
"Changes to the voting rights and the appointment of additional board members from the local investor were made to further cement the Hong Kong leadership and governance at a board level," a Jetstar spokeswoman said.
Initially a split joint-venture between the Chinese and Australian carriers, Jetstar Hong Kong took Shun Tak Holdings on-board in 2013 as a means of placating Hong Kong regulatory authorities' concerns the airline did not meet local shareholding and control requirements.
Cathay Pacific (CX, Hong Kong International) and Dragonair (Hong Kong International) have also expressed heavy opposition to the carrier's launch arguing that even with a greater than 51% local shareholding, Jetstar Hong Kong would still not meet Hong Kong's constitutional law requirements as, in their view, direct control of the airline would lie abroad.
Jetstar Hong Kong originally had nine A320-200 (sl)s awaiting operational deployment but in the wake of the ongoing delays, has since sold six leaving a bare minimum of three required for certification.
Quoting unnamed industry sources, the report further adds that Jetstar will not receive a licensing hearing to start operations until January 2015 at the earliest.
