Northstar

The Indispensable Travel Industry Read Feature Highlight Hotel Suites : Leela Palace Udaipur Vol. 3 Issue 10 | 03 April 2012 | www.travelweeklyweb.com | Published by Travel & Meetings Group, Ten Alps Communications Asia Pte Ltd News AsiaRooms.com hunt for Singapore's Social Travel Star News Page 7 Second from left: Bruce Buchanan, CEO Jetstar Group, Alan Joyce, CEO Qantas Group, Chairman of China Eastern Airlines, Liu Shaoyong, Vice Chairman and President of China Eastern Airlines, Ma Xulun Scoot to Tianjin – four times a week Jetstar Hong Kong: partnership of China Eastern Airlines and Qantas Jetstar Hong Kong is born – thanks to a partnership between China Eastern Airlines and Qantas, which owns the Jetstar Group. Jetstar Hong Kong services will begin in 2013, subject to regulatory approval, starting with a fl eet of three Airbus A320, and by 2015, it is expected to be raised to 18. China will then be able to enjoy the leading low fares airline model, with the partners combining their local knowledge and networks. It is based on servicing short haul routes in Asia, including Greater China, Japan, South Korea and South East Asia. Jetstar Hong Kong is underpinned by a total maximum capitalisation of up to US$198 million, and China Eastern and Qantas will be equal partners, with US$99 million as the maximum exposure for each over three years. Chairman of China Eastern Airlines, Liu Shaoyong, said "Cooperation with Qantas Group is a key step in China Eastern Airlines' international expansion strategy. "Jetstar Hong Kong's low fare model will enable people to fl y more often for less and will help to stimulate the Hong Kong tourism industry and the broader economy. Qantas Group chief executive officer, Alan Joyce, said the new agreement would build a strong platform for accessing the world's largest, fastest growing and most profi table aviation market. "Establishing Jetstar Hong Kong in the heart of Asia and on the doorstep of mainland China is a historic opportunity to continue the successful expansion of the Jetstar brand in this region. "We know from our experience with Jetstar in Australia and in the setup of Jetstar Japan the benefi ts of both a premium and a low cost airline operating in the same market. This will also apply to Jetstar Hong Kong, which will leverage the local Page 8 knowledge and scale of China Eastern Airlines with the successful low cost model of Jetstar." Vice Chairman and president of China Eastern Airlines, Ma Xulun, said: "Jetstar Hong Kong will maximise synergies by combining Jetstar Group's resources including brand management, commercial management, safety, aircraft maintenance and IT systems with China Eastern Airlines' leading position in the Chinese aviation market." The Jetstar Group's CEO, Bruce Buchanan said the new airline would trigger new travel demand as it is the fi rst low cost carrier based in Hong Kong and the second based in Greater China. Fares are expected to be 50 per cent less than existing full service carriers. "This is a unique opportunity for Jetstar to capitalise on the enormous potential of the Greater Chinese market, where the penetration rate of low cost carriers is less than fi ve per cent" he added.

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