Shun Tak Holdings has joined Qantas and China Eastern in deciding to end its involvement with Jetstar Hong Kong and has called for the establishment of the airline to be terminated.
As a result, all three shareholders in the grounded airline have now indicated they will invest no further funds in the proposed carrier.
Shun Tak said it made the decision not to continue its investment after reviewing the Hong Kong Air Transport Licensing Authority (ATLA) judgement, which denied Jetstar Hong Kong an operating license because the airline did not meet the territory’s principal place of business test.
“The board had resolved not to further invest in the business of Jetstar Hong Kong and proposed to terminate its establishment and proceed with its winding-up,” Shun Tak said in a statement to the Hong Kong stock exchange on Tuesday evening.
“The company will further discuss this matter with the other two shareholders of Jetstar Hong Kong. The company does not consider that the winding-up of Jetstar Hong Kong would have any significant adverse impact on the financial and operational position of the group.”
Shun Tak announcement follows China Eastern’s move to cut its ties with Jetstar Hong Kong on August 14, and Qantas chief executive Alan Joyce’s declaration on August 4 his airline would not invest any more funds into the airline.
Jetstar Hong Kong chief executive Edward Lau said in a statement on August 13 the airline’s board was “continuing to assess all options, and will announce the next steps accordingly”.