Qantas (QF, Sydney Kingsford Smith) Group CEO Alan Joyce says his firm has written off its investment in failed start-up Jetstar Hong Kong (Hong Kong International). Speaking in Sydney during the Group's Financial Year 2014/15 results, Joyce confirmed no further investments would be made.
The announcement comes after fellow Jetstar Hong Kong shareholder China Eastern Airlines (MU, Shanghai Hongqiao) said it would discuss winding up the project with fellow investors in the coming weeks.
A joint-venture between Qantas, China Eastern, and Hong Kong-based property and transportation conglomerate Shun Tak Holdings, Jetstar Hong Kong had, at one point, held nine A320s in anticipation of launching services in early 2014. However, a protracted certification and licensing process forced the carrier to sell off the majority of the fleet.
Its bid to secure an Air Services Licence (ASL) eventually flopped in June when the the Hong Kong Air Transport Licensing Authority (ATLA) ruled the start-up's Principal Place of Business (PPB) did not conform to local laws which require it to be in Hong Kong.
