That would be funny Frogman if it weren't so true.
Jetstar HK will have a similar effect to that of HKA and HKE. They can skim some of the cream from the regional operations at CX, but at the end of the day they do not have the network or the equipment to truly compete. CX can always undercut them on price because we operate larger aircraft with lower seat costs than an A320/B737. Throw cargo revenues into the equation, and the odds are really stacked against them. Cathay's extensive long-haul network is just another advantage that will keep the CX load factor higher than its competitors, and with higher yields.
That said, Dragonair is probably most vulnerable to this threat in its smaller markets where it flies A320s. However, I doubt Jetstar is looking at flying to second tier markets where the demand is very contingent on connections from Hong Kong onwards.
None of this will stop the company from spinning the LCCs as a threat that must be managed with labour concessions. This is where we will have to stop them. We helped build this company into the global force that it is today. For this, we get to enjoy the fruits by working on vastly superior packages to those of our competition. Needless to say, the cadet program recruiting in places like India and Pakistan is seeking to swing the pendulum in the opposite direction.