Cathay Pacific, Hong Kong’s flag carrier, has become embroiled in a public dogfight with Qantas Airways and China Eastern Airlines over their plans to launch a budget airline in the Chinese territory.

John Slosar, Cathay’s chief executive, said Hong Kong should not grant Jetstar Hong Kong a licence. He claimed its “principal place of business” would not be Hong Kong (as required by law) saying it would in effect be controlled by Australian management. He said it was vital that Hong Kong carriers were not “taking directions from an overseas parrot”.

Mr Slosar said Qantas and low-cost subsidiary, Jetstar Airways, would in effect control the new airline. He pointed to a document filed with the Australian competition regulator in which the companies said Jetstar-branded airlines would “operate as a single, fully integrated organisation by co-ordinating their operations and activities in the Asian region”.