Dragonair (Hong Kong International) and Cathay Pacific (CX, Hong Kong International) have both formally objected to the Hong Kong government over the Jetstar Hong Kong (Hong Kong International) application for an operating licence claiming its approval would violate basic law and undermine Hong Kong’s economy. Cathay Pacific said Jetstar does not meet the Basic Law requirement of having its principal place of business in Hong Kong. It claimed that on the basis of public statements previously made in Australia by Jetstar Airways (JQ, Melbourne Airport) and its parent company, Qantas (QF, Sydney Kingsford Smith), "it is clear that JetStar Hong Kong is a franchise of JetStar in Australia and that managerial control of JetStar Hong Kong would rest in Australia with JetStar and Qantas Airways thereby implying that JetStar Hong Kong’s principal place of business would be in Australia, not Hong Kong". Cathay Pacific Airways contends that Hong Kong air traffic rights "should be used to support the development of truly Hong Kong-based aviation and the Hong Kong economy, not foreign airlines and their franchises". As such, allowing a carrier that is a franchise controlled by a foreign airline to gain access to Hong Kong’s air traffic rights "would severely weaken Hong Kong’s ability to negotiate with foreign governments for the expansion of Hong Kong’s air services." Dragonair, for its part, claimed that given the capacity constraints at Hong Kong International, 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.