Jetstar Hong Kong (Hong Kong International) has sold off two of its three remaining A320-200 (sl)s shareholder Shun Tak Holdings Ltd has disclosed in a Hong Kong stock market filing.
According to the Hong Kong-based property and transportation conglomerate, the start-up sold the two jets to Chinese lessor, CMB Financial Leasing, for USD41.5 million each (USD83 million in total).
Jetstar Hong Kong had, at one point, held nine A320s in anticipation of launching services in early 2014. However, a protracted certification and licencing process has resulted in the carrier selling off the majority of its fleet in a bid to cut costs.
"As the establishment of Jetstar Hong Kong is taking longer than initially expected, the sale of aircraft under the Aircraft Sale Agreements will optimize the fleet plan in the short term," Shun Tak said. "The proceeds from the sale will be used for repayment of debt and for general working capital purposes of Jetstar Hong Kong."
A joint-venture between Qantas (QF, Sydney Kingsford Smith), China Eastern Airlines (MU, Shanghai Hongqiao) and Shun Tak, Jetstar's application for an operator's licence underwent scrutinization during an Air Transport Licensing Authority (ATLA) inquest in February. Rivals Cathay Pacific (CX, Hong Kong International) and Dragonair (Hong Kong International) have fiercely resisted the carrier's licensing claiming it is nothing but a front for Australian interests.
In terms of its shareholding Shun Tak, Qantas, and China Eastern all hold equal 33.3% stakes in the carrier. However, in a bid to enhance claims the carrier is legitimately owned and run by Hong Kong nationals, Shun Tak controls 51% of the voting rights.
A decision is expected in the coming months.
