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China Daily Website

China Eastern taps into budget flights with new HK carrier

Updated: 2013-02-01 21:23
( chinadaily.com.cn)

An application to launch a new budget airline in Hong Kong has been approved by the Ministry of Commerce.

Jetstar Hong Kong is a joint venture between China Eastern Airlines Co Ltd and the Qantas Group, sources said.

The launch of Jetstar will make China Eastern the first carrier among China's three major airlines to tap into budget flights.

It will operate flights between Hong Kong and major cities on the Chinese mainland as well as to Southeast Asia, the National Business Daily reported on Friday.

Industry analysts said the development of low-cost airlines will become a trend in the domestic aviation market.

China Eastern and the Qantas Group, which owns the Jetstar Group, decided to set up Jetstar Hong Kong in March 2012. The two partners will each hold a 50 percent stake in budget carrier, with a total investment of no more than $198 million.

Jetstar Hong Kong plans to have a fleet of 18 aircraft by 2015.

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