Jetstar to shortlist Hong Kong subsidiary RFP by mid-October

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Jetstar is set to shortlist later this month preferred offers on its request for proposals covering 18 new Airbus narrowbody aircraft, which will be operated by newly created Jetstar Hong Kong.

The carrier approached the market with an estimated $740 million RFP covering 18 Airbus A320s last month and bids were due by 24 September.

Jetstar is asking for commercial debt proposals as well as sale and leasebacks, according to one financier.

The aircraft, which are scheduled for delivery between July 2013 and December 2014, will be operated by Jetstar Hong Kong, a strategic partnership between the Qantas Group and China Eastern Airlines, which is expected to commence operations next year.

Jetstar Hong Kong will start services with a fleet of three Airbus A320s, growing to 18 A320s by 2015.

Both, Qantas and China Eastern Airlines will provide a total of $198 million into this joint venture, each holding an equal percentage share. The maximum exposure for each carrier is $99 million over a three-year period.