China Eastern signs shareholders’ agreement relating to the establishment of Jetstar Hong Kong

China Eastern Airlines board announced (24-Aug-2012) that Eastern Air Overseas (Hong Kong) Corporation Limited (EAO), a wholly owned Hong Kong-based subsidiary of the company, entered into a shareholders' agreement with Jetstar International Group Holdings Co Limited (JIGH), a wholly-owned Hong Kong-based subsidiary of Qantas, pursuant to which EAO and JIGH agree to establish Jetstar Hong Kong, a Hong Kong-based, Jetstar-branded low-cost airline. Details include:

• Share Capital: Jetstar Hong Kong will have a capital up to USD198 million to be contributed equally by EAO and JIGH;
• Shareholding Percentage: The shareholding percentage in Jetstar Hong Kong shall be equally held by EAO and JIGH;
• Initial Fleet Plan: The initial fleet plan comprises the acquisition of 18 A320s over the first three years of operation of Jetstar Hong Kong;
• Principal place of business: Jetstar Hong Kong shall be incorporated and have its principal place of business in Hong Kong. [more - original PR]

China Eastern Airlines: "The low-cost airline market in Hong Kong has significant existing potential and room for growth, which provides the Company with opportunities for establishing a locally-based low-cost airline and developing the businesses in low-cost airline. The establishment and operation of Jetstar Hong Kong will take advantage of the Jetstar group's rich experience in low-cost airline operations and industry expertise of both the Company and Qantas. It will lay a foundation for establishing a more comprehensive and broader cooperation for both the Company and Qantas in the future," Company statement, 24-Aug-2012.