Baker & McKenzie Advises China Eastern Airlines on Joint Venture with Qantas to Set Up Jetstar Hong Kong
Deal Announcement
11 September 2012
Hong Kong, China, 11 September 2012 – Baker & McKenzie recently advised China Eastern Airlines Corporation Limited (“CEA”) on its joint venture agreement with Jetstar International Group Holdings Co. Limited, a wholly owned subsidiary of Qantas Airways Limited ("Qantas"), to establish Jetstar Hong Kong, a Hong Kong-based Jetstar-branded low cost airline. CEA and Qantas are investing up to USD198 million in the joint venture.
The Baker & McKenzie team was led by Beijing-based M&A and Securities partner Jackie Lo and Shanghai-based M&A and Securities special counsel Eddie Yuen.
Jetstar Hong Kong plans to fly short haul services to Greater China, Japan, South Korea and Southeast Asia. Subject to regulatory approval, Jetstar Hong Kong services will start in 2013. The Jetstar Group (a subsidiary of the Qantas Group) is the Asia Pacific's fastest growing and largest low fares network by revenue and carried more than 20 million people in FY12.
CEA is China's second largest carrier. Headquartered in Shanghai, it has a route network covering over 900 destinations in 169 countries and is a Top 10 global airline in terms of passenger volume. It is listed in New York, Hong Kong and Shanghai.