Sydney 4:15pm
26th March 2014
Airline boss Elaine Joist has grounded the entire Jetstart Hong Kong fleet in response to delaying actions by Hong Kong Regulators.
The airline is fighting with its code share partner Cathy Pacific, Hong Kong Regulators and any other entity willing to join the conga line of disgruntled stakeholders.
In a shock move, Airline boss Elaine Joist announced today the Jetstart Hong Kong fleet will be grounded indefinitely.
However current Jetstart Hong Kong employees will continued to be paid as usual. So to, parking fees and associated costs with the airlines Airbus fleet.
The permanent grounding adds to ongoing costs the Jetstart Hong Kong venture has endured. Rumoured to be $4 million dollars a month alone for the 9 Airbus A320's parked in France.
Asked about these costs. Joist replied "that's a matter for our group CFO & Group Treasury.
Speaking at his Sydney office Joist stated "We are grounding the Jetstart Hong Kong venture until Cathy Pacific withdraw their extreme claims that the airline will be controlled from Australia"
Asked why the decision was made in Australia Joist replied "that's an issue you should ask the management team in Hong Kong".
The action should stand as a warning to other countries regulators that Joist is prepared to have aircraft idle anywhere he pleases.
"I will ground the fleet until Hong Kong regulators meet my demands" says Joist.
"It's an unbelievable decision, it's a very hard decision ... we have no alternative. This is the fastest way to ensure the airline gets in the air."
Mr Joist said his hand had been tipped by the impossible demands of regulators and those opposing real competition.
"They are trashing our strategy and our brand," he said.
"They are deliberately destabilising the company and there is no end in sight."
Asked when he made the decision to indefinitely ground the Hong Kong Fleet Joist replied "I unattended a meeting with regulators in Hong Kong and noticed one gentlemen was wearing a red tie. I slept on it and decided the next day that I had no other options"
The move comes as a result of a long-running regulatory impasse in Hong Kong.
"We didn't see the same delays with our sham arrangements in Singapore" said Joist.
Mr Joist said if the action continued, he would have no choice but to shut down its Australian legacy business "part by part".
Asked why Jetstart Hong Kong delays would impact Australian Mainline operations Joist barked "Get with the program, where you been hiding the last ten years"
Other Jetstart franchises will not be grounded.
Elaine Joist has slammed the TWU, ALAEA and AIPA saying their behaviour is "reckless, unwarranted and disgraceful".
Asked how these unions were involved in the Hong Kong regulatory process. Joist responded its part of their plan to "slow bake the airline, we're passionate about safety and safety is our number one priority"
The aircraft engineers union says it is not surprised Joist would take such extreme action.
"I think this is an extreme measure for the CEO and airline to take given we've not spoken in 6 months and have no open EBA negotiations.
Mr Joist said he was sorry for the course of action & it had become necessary but the ball was now in the regulators court.
"They must decide just how badly they want to hurt Jetstart Hong Kong and the travelling public," he said.
The airline said at 4pm (AEDT) today there are 9 aircraft grounded and further undisclosed aircraft deliveries soon.
The airline said the impact to customers are minimal as they have yet to sell any tickets.