From a friend: some excepts from the HK press:
Jetstar Hong Kong faces bumpy take-off
Various
Extensive media coverage on the MOU signed between Qantas and China Eastern on setting up a HK-based LCC Jetstar HK. China Eastern chairman Liu Shaoyong expects the carrier to take up five million passengers by 2015, equivalent to 6% to 7% market share, and generate a profit from 2016, the concerns of “principal place of business” of the planned carried was raised by SCMP and Ming Pao.
Aviation experts say Jetstar HK may encounter problems in regulatory and licensing issues. One issue is whether it can be designated as a HK carrier by the Government.
They said it was difficult to see how Jetstar HK could qualify as having its principal place of business in the territory if there was no decision-making in Hong Kong.
Countries which had air services agreements with HK could deny the new carrier landing rights if they felt it’s not a truly HKG airline. Jetstar HK is also expected to face opposition from incumbent carriers seeking to block or delay its air transport licensing application.
The HK Government was quoted saying that “new operators need to bring competition into the HK market and offer more choices to the consumers”.
I guess you know who "aviation experts" are - the Airline Planning depts of CX-KA and HX