Qantas to launch Jetstar/China Eastern Venture
Qantas is set to unveil a joint venture with China Eastern today which will create a new budget airline to be called Jetstar Hong Kong.
In a significant breakthrough into the northern Asian region, Qantas is expected to announce the Hong Kong joint venture with the Shanghai-based airline this morning at a press conference scheduled for 9.30am, AEDT. The new airline will use short-haul Airbus A320 aircraft, serving routes in Asia including China, starting in 2013.
Qantas said the maximum exposure for both it and China Eastern will be $US99 million ($96 million) over a three-year period. The carriers plan the new venture to expand from an initial three aircraft to 15 by 2015, China Eastern said in a statement to the Hong Kong stock exchange.
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