China's ministry of commerce has cleared China Eastern Airlines' and Qantas Airways' proposal to set up a joint venture airline in Hong Kong.
The carriers need approval from the Hong Kong government before Jetstar Hong Kong can be launched.
The company has since registered its business in Hong Kong and is ready to start operations this year, as soon as the necessary approval from the local government is received, says China Eastern.
Jetstar Hong Kong had previously said that it plans to start operations in mid-2013 and have a fleet of 18 Airbus A320 aircraft by 2015.
The low-cost carrier also said that it expects to be profitable within three years of operations and gain a 7% market share by 2015. China Eastern and Qantas will pump $198 million into the joint venture, with both parties holding a 50% share.
Hong Kong, an aviation hub through which about 40 million passengers travel each year, has a population base of around 7 million. Greater China, meanwhile, has a travel market of almost 300 million passengers per annum, a number which is expected to grow to 450 million by 2015.