Qantas (QF, Sydney Kingsford Smith) CEO Alan Joyce has reiterated the Qantas Group's commitment to its stalled Hong Kong-based venture, Jetstar Hong Kong (Hong Kong International). Speaking at the carrier’s AGM last week, Joyce said he was hopeful the start-up would secure a hearing with the Hong Kong authorities in early 2015.

"We are expecting a hearing in the early new year and that process is then determined by the Hong Kong authorities,” he said.

Jetstar Hong Kong, which started out as joint venture between the Australian carrier and China Eastern Airlines (MU, Shanghai Hongqiao), saw Hong Kong-based property and transportation conglomerate, Shun Tak Holdings Ltd, take a 33% shareholding in the carrier in June last year.

Shun Tak's entry was largely seen as an attempt at conforming to Hong Kong's Transport and Housing Bureau (THB) "Basic Law" regulations that require all locally registered to be incorporated in the city and have their principle place of business in Hong Kong to be considered "local" under the law.

Last week, the regulatory authority publicly stated that it would now include the public interest in its assessment of proposed start-ups.

"Factors such as ultimate management and control of the business, the relationship between the applicant and other foreign airlines, the place where the major operations of the airlines' business is conducted would be relevant. It has also been stipulated clearly in the revised guidelines that public interests will be taken into account when considering whether an airline should be designated," the THB told the South China Morning Post in statement.

The added condition could result in further set backs after Cathay Pacific (CX, Hong Kong International) and Dragonair (Hong Kong International) both insisted they will not drop their opposition to Jetstar Hong Kong's launch maintaining instead that the carrier is still only a front for Australian interests.

"It looks to us that Jetstar doesn't have its principal place of business in Hong Kong. It is a branch office of an Australian airline. All the legal advice taken has said it just doesn't meet the Basic Law," Cathay Pacific's head of corporate development, James Barrington, said in an interview with the Sydney Morning Herald.

Cathay Pacific and Dragonair also base their objection on the grounds that with Hong Kong International fast approaching its maximum capacity, so Jetstar's business model would not make the best use of the airport's remaining available slots and would not therefore benefit the Hong Kong economy as a whole.

Despite the constant delays, Jetstar Hong Kong management have stated they are confident they will be given the go-ahead.

"Jetstar Hong Kong is still progressing through the regulatory approval process, and continues to work closely with the regulators. We are awaiting direction from the regulators and any dates will be managed and communicated by the Air Transport Licensing Authority (ATLA) panel. Jetstar Hong Kong is confident of gaining approval," a Jetstar Hong Kong spokesman said.

In the wake of its prolonged certification, Jetstar Hong Kong has been forced to dispose of six out of its nine A320-200 (sl)s with the other three currently parked.