HONG KONG, Mar 28 (GCTL) - Regulatory and licensing issues could cause significant headwinds for Jetstar Hong Kong, the low-cost airline being set up by Qantas Airways and China Eastern Airlines, even before it takes to the skies, aviation experts say.
One issue is whether it qualifies as a Hong Kong carrier, a decision that could prove to be one of the early tests of Hong Kong's independence under Leung Chin-ying's administration. Jetstar is also expected to face opposition from incumbent carriers seeking to block or delay its air transport licensing application.
Andrew Pyne, a senior partner at airline and aviation consultant Concuros, said that under the Basic Law, the government negotiated agreements providing routes for airlines incorporated and having their principal place of business in Hong Kong, the South China Morning Post reported.
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