Looks like the HKG ATLA has denied the application for a licence for Jetstar Hong Kong on the basis of the level of foreign ownership ie QF

This is proving to be an expensive exercise for Joyce. If it was anyone else they would have fallen on their sword long ago.

I'm looking forward to the triumphant J* HKG profit announcement on the front page of Qantas Pravda. There is no doubt that brilliant decisions from Management have once again saved the day.

Think of the money they'll save with no airline and no staff?

I just feel for the staff who got caught up in this franchise. You would have thought the company would have done its due diligence before embarking on such an experiment.

I particularly dislike the way Jane signed off the company announcement with 'warm regards' after admitting it's been torpedoed.

It should have been 'yours sincerely'.

This shows a complete lack of judgement in my opinion.

I don't know, the language in the latest company missive seems to have an underlying tone that they are about to pull the pin altogether. They have blamed all those other local airlines and said that they can't understand the rejection as they only own such a small piece. This together with them asking us to support our Hong kon colleagues during such a tough time makes me think that this was the last shot.

Publicly Qantas will be disapointed with the decision. Privately they will be content.

The world has not stood still for 4 years. The business case for Jetstar HK is not what it was 4 years ago and they now have other better uses for their capital and resources.

After a 3 year delay, with all the HK slots gone, with an un-supportive local administration, Jetstar HK was going to be a struggle.

Fast forward the 787-9.

No, your right Beer Baron, in just the same way that QF International was in "Terminal Decline", until it was saved with the stoke of an accountants pen.
One has to wonder if there was a connection. Losses can't be eliminated, however, they can be transmuted. Was the QFI loss the toxic waste barge that carried away the groups financial sins?

You are just figuring it out now?

Camel Squadron, QF senior management are now publicly stating that JQ are keeping the -8's and not getting any -9's - they are all planned to go to mainline.

Sorry wasnt suggesting otherwise. Just pointing out that Qantas now has better uses for the capital that was going to have to go into Jetstar HK.

In my opinion the business case for Jetstar HK has deteriorated over the past 4 years. The world does not stand still.

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.

It may be a graveyard for the White man, but who owns Swire?

But I thought it was a faaaaaaannnnnntastic buisness ?

Yep, fully aware of the history of mercantilist triangular trade in cotton/opium/textiles/silver between Manchester/India/China & the East India company.

Notice I said that likely they had a tight connection to the CCP? I should have been more precise, its the graveyard of the outsider white businessman. Swire are don't want competition, they never have & will ruthlessly protect their patch. A quick google search will reveal the sordid history of the family. They are fully integrated into the power structure of the region.

WOW. That Jetstar HK must be one very influential business.....it has changed the asian market without making a single flight.......:)

Rubbish
 

You can round around about how lucky it was not to eventuate, but really heads should role...Joyce, JQ CEO, both should be gone, the absolute waste of $$$ for no out come, why would you let them run a business, surely the board should question the direction of JQ....Time to re evaluate the operation and put JQ to the dogs....JQ Japan is a loss maker too much competition...Time to do what ANZ did, invest in the core Airline & make $$$

Ummmmm no. If anything It taught an idiot (s)he is an idiot. At least we hope it did.

Jetstar HK...capital light..is all one hears...minimal losses etc.

Perhaps someone smarter than I can explain who gets the prickly end of the pineapple on the fleet disposition.

So far 8 brand new A320's have been sold off the parking lot in Toulouse.

Catalog price is USD 94m a copy.

QF got a good discount due the large commitment they made in 2011 for the purchase of 110 of the type. Sail away price of about $70m.

There has been no disclosure of the price on the first sale of 6 of the JQHK fleet but the last two went for $41.5m a copy. All have ended up in the hands of Chinese interests.

So half a billion dollars of kit has been recycled at a 40-50% discount.

Where does this show up and in who's books?

Would it be fair to assume that the Chinese investments/loans in JQHK are already covered via these transactions?

Interesting to read that the decision was based on the fact that Jetstar Hong Kong is not majority owned by local interests regardless of what the financials say because they could never make an operational decision without the input of Australian based investors.

This to me means that the AOC will never be issued as ALL the Jetstar franchises are run from Melbourne. All I can say is that it is actually good for the Qantas group that a regulator has finally stood up to this smoke and mirror show. I am sick of Qantas saying that they are just minority shareholders in these other airlines when most of the time they are giving interest free loans to some local 'businessman' who then uses it to purchase a majority share in the franchise and has absolutely no say in how the airline is run.

JH says their investment in Jetstar HK is only $10 million dollars, I would say that this is certainly 'bending' the truth, not that we will ever see the true exposure reported.

Suspect this lot are unravelling so hang in there.

If there has been any "bending of the truth" then it will come out as the rats try to get to the lifeboats.

Oldie Onion

Just for the record JHK was 2/3 foreign owned. China Eastern is a mainland Chinese carrier based out of Shanghai.

I still see AJ is spinning crap in the press about HK not allowing competition. If the roles were reversed and CX applied for an Austrailian AOC to operate internationally out of Australia, he'd be the first to squeal like a stuffed pig to the Australian government. Pure hypocrite.