Jetstar Hong Kong in for fight by CX

Cathay Pacific ready to fight

New budget airline Jetstar Hong Kong is in for a fight when it starts operating in Hong Kong based airline Cathay Pacific’s turf.

Cathay Pacific’s chief executive John Slosar said the airline would be aggressive and made it clear the budget carrier would not get an easy ride.

After the International Air Transport Association (IATA) downgraded the Asia-Pacific region’s forecasted growth, competition is expected to become fierce in the region.

“Aviation is a very competitive business and we compete with lots of carriers in lots of places each day,” Mr Slosar said at the recent IATA annual meeting in Beijing.

Qantas budget offshoot, Jetstar Hong Kong, is part of a joint venture with China Eastern.  Plans unveiled in March this year to set up the low-cost affiliate saw both airlines invest almost US$100 million over the next three years into the airline.

This joint venture however still requires regulatory approval from Hong Kong authorities,

Despite Jetstars push into Cathay Pacific’s territory, Mr Slosar said it would not put strain on the airlines relationship with Qantas, who is also a member of the oneworld airline alliance.

“Alliances always have certain overlaps,” he said.

Source = e-Travel Blackboard: K.W
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