I think you have it round the wrong way CamelSquadron, business conditions deteriorated because of the establishment of Jetstar Hong Kong. Direct cause and effect.
But realistically, was it ever going to be allowed to fly? Many argued on these pages, that frankly it didn't ever stand a chance given the Swire groups grip on the aviation market in Hong Kong & no doubt tight connection to the CCP.
Losses in Vietnam, Japan & a few miniscule profits in Singapore. If the rumors of the figures of few, now former group managers are close to being true then the total losses for the entire Jetstar experiment are eye an watering $1.6B. The only clawback is a sale of QF's 1/3 stake in Jetstar Japan as a trading asset for some $600M
Asia has been a business graveyard for the white man for a long time, right or wrong, that's just how it is. But, the Masters of the Universe thought they knew otherwise.