Shun Tak pulls out of budget airline Jetstar Hong Kong

Hong Kong property development and shipping conglomerate Shun Tak Holdings Ltd. announced on Tuesday that it has pulled out of the business of the budget airline Jetstar Hong Kong, following the exit actions of partners China Eastern Airlines and Qantas Airways.
‘After reviewing ATLA’s (Air Transport Licensing Authority) decision and having contemplated potential courses of action, on August 25, 2015, the board resolved not to further invest in the business of Jestar Hong Kong and proposed to terminate its establishment and proceed with its winding up,’ Shun Tak stated in the Tuesday filing.
In June, the Air Transport Licensing Authority in Hong Kong rejected the licence application for Jetstar Hong Kong on the grounds that it did not have its principal place of business in Hong Kong.
Shun Tak, China Eastern and Quantas each held a third of the budget airline venture.
‘The company does not consider that the winding-up of Jetstar Hong Kong would have any significant adverse impact on the financial and operational position of the group,’ Shun Tak said.
Jetstar Hong Kong was launched in March 2012 as a Hong Kong-based
budget carrier flying to short-haul destinations in Asia.
The budget airline has been grounded for more than 2 years due to regulatory hurdles. Jetstar Hong Kong’s application for a licence was challenged by Cathay Pacific on the grounds that the budget carrier had failed to meet the Basic Law’s requirement of having its principal place of business in Hong Kong.