The Qantas Group has welcomed leading Hong Kong tourism, hospitality and property conglomerate Shun Tak as an additional investor in Jetstar Hong Kong*.
Shun Tak will join founding investors Qantas Group and China Eastern Airlines, taking a 33.3 per cent share of the Hong Kong-based low cost carrier.
As a result of the transaction, Qantas Group and China Eastern Airlines each hold 33.3 per cent of Jetstar Hong Kong alongside Shun Tak.
Qantas Group CEO Alan Joyce said Shun Tak is a well-established presence in the local market and has a range of tourism and travel interests that align well with Jetstar Hong Kong.
“This adds to the strategic partnerships we have across Asia with companies that have chosen to invest in the Jetstar brand.
“There is clear potential for a local low cost carrier in Hong Kong to stimulate new travel demand, particularly given the proximity to mainland China and the ability to connect with existing parts of the Jetstar network,” added Mr Joyce.
Jetstar Hong Kong’s application for regulatory approval is well underway. Since Jetstar Hong Kong was announced in March 2012, the airline has built up a local management team, started pilot and cabin crew recruitment and is well advanced in its Air Operators Certificate application.
The Qantas Group, which owns the Jetstar brand, has part shareholdings in three other Jetstar branded airlines in Asia – Singapore, Vietnam and Japan.
The total capitalisation of Jetstar Hong Kong remains unchanged at up to US$198 million. In line with the new shareholding structure, the Qantas Group has reduced its initial planned equity investment from a maximum of US$99 million to up to US$66 million. China Eastern Airlines and Shun Tak will also contribute up to US$66 million each.
*Subject to regulatory approval.