Cathay digs in on its home turf
Cathay digs in on its home turf
Jetstar has to gain approval from regulators in Hong Kong for its new venture there, but Cathay has used the latest application from Qantas to highlight the hurdles the new airline will face.
Cathay has hinted to the ACCC that it should delay making a decision on whether to allow Jetstar Hong Kong to be included in any closer co-ordination of services between Qantas and the Jetstar offshoots until it has gained the green light from regulators in Hong Kong.
"It is also possible that conditions may be imposed on any approval given in Hong Kong," Cathay said.
"Accordingly, it may be difficult for the ACCC to authorise the proposed conduct in relation to Hong Kong if it is unclear whether Jetstar will be granted approval to operate flights within Hong Kong and, if it is granted approval, what the conditions of that approval may be."
Qantas unveiled plans early this year to launch a low-cost airline in Hong Kong as part of a joint venture with China Eastern. The new airline plans to begin flying by the middle of next year.
Could become a real bun fight in the coming months, some say this move could damage the "one world" relationship with CX