A Jetstar Hong Kong spin-off is one step closer to reality now that it has applied for its air operator certificate (AOC) with China’s Civil Aviation Department. This up-coming budget airline is a 50-50 joint venture between Qantas and China Eastern Airlines.

Jetstar Hong Kong aims to launch in mid-2013 with a fleet of three Airbus A320 aircraft, and expanding to 18 aircraft by 2015. The airline is anticipated to fly short-haul routes from Hong Kong to cities in China, Japan, and Southeast Asia.

Once launched, Jetstar Hong Kong will be Hong Kong’s only low-cost airline after Oasis Hong Kong airlines ceased operations in 2008.

As stated in the Jetstar press release: “Recent research showed that 70 per cent of Hong Kong residents believed airfares to-and-from the city were too expensive and 66 per cent agreed low cost carriers would benefit the local economy.”