The joint venture between China Eastern Airlines and Qantas Group, Jetstar Hong Kong, will commence services by the end of this year or early next year.
The 50/50 partnership low-cost carrier is awaiting approval after applying for its operators certificate from the Hong Kong Government, according to Air Transport World.
China Eastern chairman Liu Shaoyong said Chinas low-cost carrier element is lacking and needs further development.
The operating environment for domestic carriers still needs to be improved.
China Eastern managing director Ma Xulun said the carrier will have its work cut out but was confident in the new Hong-Kong based carriers capabilities.
Low-cost carriers account for more than a 25% share of the global air transport market and the figure is more than 33% in Southeast Asia, while comparably speaking this figure is less than 5% in China.
High import taxes for foreign-made aircraft and a shortage of pilots and airports are just some of the challenges faced by low-cost carriers throughout China.
Chinas single current low-cost carrier, Shanghai-based Spring Airlines, has been turning a profit since its beginnings in 2004.
Source = e-Travel Blackboard: P.T