Jetstar Hong Kong Considers Sale And Leaseback Of Planes Awaiting Clearance To Fly

Jetstar has confirmed its Hong Kong branch is considering the sale and leaseback of its new Airbus A320s fleet, currently grounded as it waits for regulatory approval to launch flights.

The Sydney Morning Herald reports the airline, which was due to begin service in the mid-last year, has not been told when the approval will be granted.

It adds to the pressure on Jetstar’s parent airline Qantas, which has had its credit rating downgraded to junk and is conducting a lobbying campaign for regulatory reform in Australia to give it more flexibility to compete in the domestic market, where it is struggling to fight aggressive investment from Virgin Australia.

Now with a permanent workforce of about 50 personnel and plans to take a delivery of two more planes by June, Jetstar Hong Kong is relying on its three shareholders – Qantas, China Eastern and listed conglomerate Shun Tak – to carry the costs of the seven grounded planes.

The SMH has more.

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