Qantas Airways Limited
(ASX:QAN) has announced a major investor in Jetstar Hong Kong.
Tourism and hospitality conglomerate Shun Tak will join founding investors Qantas and China Eastern Airlines, taking a 33.3 per cent share of the low cost airline.
Qantas CEO Alan Joyce says Shun Tak has a well-established presence in Hong Kong and has a range of tourism and travel interests that align with Jetstar.
Jetstar Hong Kong’s application for regulatory approval is still pending, but the airline has a local management team and started pilot and cabin crew recruitment.
As part of the new shareholding structure, Qantas has cut its planned equity investment from a maximum of $99 million to up to $66 million.
Qantas Airways generated a net profit of $111 million in the first half of this financial year.
