Jetstar Hong Kong is the latest addition to the Qantas family, with the Red Roo entering into an agreement with Shanghai-based China Eastern to start up a new Jetstar franchise.
Jetstar Hong Kong will start in 2013 with a fleet of three Airbus 320s, growing to 18 A320s by 2015.
It will service short haul routes in Asia including Greater China, Japan, South Korea and South-East Asia.
The strategic alliance will see Qantas and China Eastern Airlines take equal stakes in the startup.
China Eastern is a member of the SkyTeam alliance rather than oneworld, although it is an existing Qantas Frequent Flyer partner.
“We know from our experience with Jetstar in Australia and in the setup of Jetstar Japan the benefits of both a premium and a low cost airline operating in the same market” said Qantas Group Chief Executive Officer Alan Joyce.
"This will also apply to Jetstar Hong Kong, which will leverage the local knowledge and scale of China Eastern Airlines with the successful low cost model of Jetstar."
Jetstar CEO Bruce Buchanan promises that "Jetstar Hong Kong’s fares will be 50 per cent less than existing full service carriers, which we’ve seen create new travel demand in our markets across Asia because it enables people to take more trips, more often.”
Existing Jetstar operations outside Australia are based in Singapore, New Zealand and Vietnam, with new airline Jetstar Japan due to start flying in July 2012.
The A320's range provides numerous options, including flights to Darwin, connecting on through Australia from there.
Earlier this month Joyce shelved his scheme to establish a new 'full service' airline, which was tipped to be branded Red Q or OneAsia (although wags were quick to christen it 'Qantasia'), as a joint venture with MAS.
Joyce subsequently said he wasn't giving up on the idea of an airline with its footprint centred on Asia, although Jetstar isn't quite that 'premium airline' brand.