China Eastern extends hefty loan to Jetstar Hong Kong
China Eastern Airlines (MU, Shanghai Hongqiao) has extended its stalled Hong Kong-based venture, Jetstar Hong Kong (Hong Kong Chep Lap Kok), a loan of up to USD60million Sweden's Finet newswire has reported.
A joint venture between the Chinese carrier, Qantas (QF, Sydney Kingford Smith) and local shipping and property conglomerate, Shun Tak Holdings, Jetstar Hong Kong has yet to commence operations despite lodging an application with Hong Kong's Transport and Housing Bureau in mid-2013 for an Air Operator's Certificate (AOC) and an Air Services Licence (ASL).
Jetstar Hong Kong has encountered severe resistance from local carriers Cathay Pacific (CX, Hong Kong Chep Lap Kok) and Dragonair (KA, Hong Kong Chep Lap Kok) which claim the start-up's shareholding structure does not conform to local ownership laws and that once operational, would only serve to increase congestion at Hong Kong Chep Lap Kok.
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