Jetstar Hong Kong is due to start flying at the end of 2013 from the region's international airport. It is one-third owned by the Qantas Group, China Eastern Airlines and Hong Kong ferry and tourism company Shun Tak Holdings.
The venture will cater to the growing low-cost travel market in Asia, particularly in China.
The new carrier will “service short-haul routes in Asia, including Greater China, Japan, South Korea and Southeast Asia”. It will commence flights subject to regulatory approval, which seems more likely now that Shun Tak is involved.
Jetstar Hong Kong will launch with an initial fleet of three Airbus A320s before expanding to 18 aircraft by 2015.
Consistent with the Jetstar business model, the new airline will offer fares that are "50 per cent less than existing full-service carriers".