The Qantas Group has announced a joint venture with China Eastern Airlines to launch Jetstar Hong Kong, which will cater to the growing low-cost travel market in Asia, particularly in China.

According to a press statement, the new carrier will “service short-haul routes in Asia, including Greater China, Japan, South Korea and Southeast Asia” and is expected to begin services by 2013, subject to regulatory approval. 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". 

jetstar.com