Qantas Airways Limited (ASX:QAN) is expanding into Asia, announcing the creation of Jetstar Hong Kong.
Australia’s largest airline has partnered with China Eastern Airlines through a $191 million strategic alliance which will see Jetstar Hong Kong take to the skies next year.
China Eastern Airlines is one of Qantas’ existing code-share partners and the move into Hong Kong will be Jetstar’s fifth franchise market.
Qantas says Jetstar Hong Kong fares will be 50 per cent less than existing full service carriers and will focus on capitalising from the booming middle class in China.
In the first half of its 2012 financial year Qantas reported a net profit of $42 million.
