Qantas and China Eastern to launch JetStar Hong Kong

Qantas and China Eastern this morning announced the formation of jetStar Hong Kong, to be based at (obviously) Hong Kong.
Built in fellow OneWorld member Cathay Pacific’s home turf, the new joint venture will be owned equally by Qantas (oneWorld) and China Eastern (SkyTeam). The new airline plans to begin operation in 2013 with flights to Japan, South Korea, Greater China and Southeast Asia. It will operate Airbus A320 aircraft, as usual with all jetStar airlines. The airline plans to grow to a fleet of 18 A320s by 2015.
This will be jetStar’s fourth overseas venture followed by jetStar Singapore, Vietnam and the soon to begin Japan operation (and fifth if you count the smaller New Zealand operation too). Now what would be Cathay’s response?

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