Qantas (QF, Sydney Kingsford Smith (SYD)) and partner, Emirates (EK, Dubai International (DXB)), have been granted approval by the New Zealand government to jointly operate Australia - New Zealand routes over the next five years. However, the Australian Competition and Consumer Commission (ACCC), who consented to the deal two months ago, have imposed conditions on Qantas and Emirates in which they must "maintain their current level of capacity on trans-Tasman routes." Meanwhile, Virgin Australia (VA, Brisbane International (BNE)) and Air New Zealand (NZ, Auckland International (AKL)), are currently seeking approval for an extension of their alliance on the trans-Tasman route with a decision from the New Zealand regulator expected by September this year. Both Virgin and Air New Zealand had raised concerns over the Qantas-Emirates tie up, suggesting any conditions imposed on specific routes "have the potential to create harmful market conditions". New Zealand’s transport minister, Gerry Brownlee, disputed this saying "trans-Tasman competition will be maintained through existing carriers and the threat of entry by new carriers."

JetStar Hong Kong (Hong Kong Chep Lap Kok International (HKG)) has moved to invite local Hong Kong-based investors to come onboard the project as a means of speeding up regulatory approval, which has seen the airline defer its launch date from June, to later this year owing to ongoing bureaucratic delays. The company - owned by China Eastern Airlines (MU, Shanghai Hongqiao International (SHA)) and JetStar Airways (JQ, Melbourne Tullamarine International (MEL)), a unit of Qantas (QF, Sydney Kingsford Smith (SYD)) - lodged its application for an operating licence more than six months ago but has since been told by city officials that further setbacks could be assuaged should it find local investors, using Cathay Pacific (CX, Hong Kong Chep Lap Kok International (HKG)) and its shareholding as a point of reference. Analysts in the industry however, point to the delays as being a possible protectionist move by government to remove the threat to local carrier, Cathay Pacific. They claim that JetStar's establishment could set a dangerous precedent for other LCCs looking to open up a base at Hong Kong Chep Lap Kok International (HKG).

Qantas (QF, Sydney Kingsford Smith (SYD)) has been approached by investors looking for a shareholding in its planned LCC joint venture with China Eastern Airlines (MU, Shanghai Hongqiao International (SHA)), dubbed JetStar Hong Kong (Hong Kong Chep Lap Kok International (HKG)). Qantas Chief Executive Officer Alan Joyce told a Macquarie Group conference that "unnamed investors" had already offered more for their stakes in JetStar Hong Kong than Qantas had invested, despite the airline still awaiting regulatory approval. Both Qantas and China Eastern will each invest up to USD 99 million over three years to set up a JetStar Hong Kong. JetStar Airways (JQ, Melbourne Tullamarine International (MEL)), run by Jayne Hrdlicka, now accounts for 20% of revenue and 31% of operating income at struggling Qantas, who are now seriously pushing to tap Asian demand for budget flights, which has more than doubled low-cost carriers’ share of regional traffic since 2007.

Qatar Airways (QR, Doha International (DOH)) is to tentatively join Oneworld in October this year, the airline's CEO, Akbar al-Baker has said. Speaking in Dubai recently, Mr al-Baker said that Qatar Airways was "well advanced in integrating its processes and systems" with the global alliance, paving the way for it to become its second Middle Eastern carrier alongside Royal Jordanian (RJ, Amman Queen Alia International (AMM)), who joined in 2007. In a related development, British Airways (BA, London Heathrow (LHR)), the sponsors of Qatar Airways' entry into the alliance, are said to be in discussions with the Gulf carrier regarding a possible joint venture on routes between Australia and the UK. Should a deal come about, it would replace a similar one BA had with Qantas (QF, Sydney Kingsford Smith (SYD)) but which ended when the Australian carrier tied up with Emirates (EK, Dubai International (DXB)) in March this year.

Hong Kong Express (UO, Hong Kong Chep Lap Kok International (HKG)) plans to transform itself into a budget airline this year, with plans to be unveiled in late May. Overall, the transformation from a full-service carrier into an LCC is expected to be complete come Q3 of this year. According to company president, Yang Jianhong, the move was precipitated by the global economic slowdown which has weakened demand for premier-class products while at the same time creating "rapid growth potential for budget carrier services" in the region. In preparation for the launch, parent Hong Kong Airlines (HX, Hong Kong Chep Lap Kok International (HKG)) has put two Airbus A320-200s at Hong Kong Express' disposal. While no exact routes or markets have been identified, Hong Kong Express has rights to fly to "most of Asia's major cities". It currently operates flights between Hong Kong Chep Lap Kok International (HKG) and Beijing Capital (PEK), Guilin Liangjiang International (KWL), Nanning Wuxu International (NNG), Sanya Fenghuang International (SYX) and Taichung Ching Chuan Kang (RMQ). Competition will come in the form of JetStar Hong Kong (Hong Kong Chep Lap Kok International (HKG)), an LCC joint venture between Qantas (QF, Sydney Kingsford Smith (SYD)) and China Eastern Airlines (MU, Shanghai Hongqiao International (SHA)), whose planned launch at the end of this year is still awaiting approval from the city's aviation regulator.