China Eastern confident of LCC venture

Chinese carrier, China Eastern Airlines is confident it will obtain regulatory approval for its budget-carrier joint venture with Qantas Airways in Hong Kong by the end of 2012.

In March 2012, China Eastern Airlines and Australia's Qantas Airways, united to set up a regional low-cost carrier called Jetstar Hong Kong, targeting the short haul market in Asia, Fox news reported.

China Eastern Chairman Liu Shaoyong said during a recent International Air Transport Association’s meeting that the initial investment of the joint alliance is approximately US$200 million.

Once regulatory approval is received China Eastern plan to roll out the service in the first half of 2013.

Mr Liu also said that he was confident the airline would be able to achieve a profitable 2012, regardless of the global economic challenges facing the airline industry.

“Our performance in the second half will likely be better than the first half,” Mr Liu said.

Sourced: .etravelblackboardasia