China Eastern Airlines and Qantas Airways have signed a shareholders' agreement to formalise their plans in establishing Jetstar Hong Kong.
This comes after the two carriers signed a memorandum of understanding for a joint venture in March this year to set up Jetstar Hong Kong.
The carrier, which aims to begin commercial operations in 2013, has also started recruitment for up to 50 pilots to operate its fleet of Airbus A320 aircraft, says Jetstar.
Recruiting efforts started after the Hong Kong Civil Aviation Department accepted its air operator's certificate application.
Analysis by Jetstar Group showed that the new airline will add over HK$8 billion ($1.03 billion) annually to the local economy, when it reaches its target of operating 18 aircraft by end 2015. The figure includes local jobs created within the airline, local engineering and ground handling suppliers.
Jetstar Hong Kong is a joint venture between Qantas Airways, through its subsidiary Jetstar and China Eastern Airlines. The two carriers will invest a total of $198 million into the partnership, with each holding a 50% share.
The carrier will start operations with three Airbus A320 aircraft and aims to expand its fleet to 18 aircraft by 2015. It plans to operate short-haul services to China, Japan, South Korea and Southeast Asia.