Qantas Airways’ Limited
(ASX:QAN) Jetstar Hong Kong is facing opposition from Cathay Pacific as the budget carrier moves to launch services from the Asian hub.
Cathay Pacific has lodged a formal objection with regulatory authorities claiming the budget airline would be in violation of the city's constitutional law because its principal place of business is in Australia.
Cathay Pacific says approval of Jetstar's application for a licence to operate services would set a dangerous precedent by granting control of Hong Kong's hard-negotiated sovereign air traffic rights to a carrier that is nothing more than a franchise operation controlled by a foreign airline.
Jetstar Hong Kong is a joint venture between Qantas, China Eastern and Shun Tak Holdings.
Qantas generated a net profit of $6 million in fiscal 2013.
