Vietnam Airlines and Australia’s Qantas Group
(parent company of the Jetstar Group) have entered into a new
partnership arrangement for the new Vietnam-based low cost carrier
named Jetstar Pacific Airlines (JPA).
The state-owned capital in
Jetstar Pacific Airlines, previously managed by Vietnam State
Capital Investment Corporation (SCIC), has now been transferred to
Vietnam Airlines according to the Prime Minister’s Decision No.
94/QD-TTg, which came into effect on 16 January 2012.
Vietnam Airlines inherits all the rights and
obligations of a state shareholder in JPA and becomes the largest
shareholder of 69.93% stake. Australia’s Qantas Group is the
second largest shareholder with 27% capital ratio. Vietnam
Airlines is selling 3% of its stake in Jetstar Pacific to the
Qantas Group in line with a long term commitment and following the
existing agreement signed between SCIC and Qantas Airways with the
In the JPA’s shareholder
meeting held on Tuesday in Hanoi, its members jointly agreed on the low
fare airline’s strategic development plan and measures needed to
secure JPA’s sustainable and efficient growth.
According to this, JPA’s board of directors continues to operate
and develop JPA into a leading low cost carrier in Vietnam.
Central to this is the development of a two brand strategy with a
full service carrier (Vietnam Airlines) and low fare carrier
The focus will be on serving
domestic and international routes. Through the new partnership,
Jetstar Pacific will receive an initial capital injection of
A$25 million. This will be directed towards fleet renewal, with
the carrier’s current Boeing 737s replaced with new A320s from
mid-2012. The shareholders support Jetstar Pacific’s fleet to grow
to 15 A320s within the next few years.
Airlines President and CEO – Dr. Pham Ngoc Minh saidm “We are glad
to reach consensus with JPA’s shareholders in developing the
carrier into a successful business model which combines low fare
advantages with Vietnam Airlines’ expertise as the Vietnam’s
flagship carrier. We strongly believe that the revitalization of
JPA will generate substantial benefits to its customers and contribute to boost Vietnam civil air transportation market as the
Jetstar Group CEO, Bruce Buchanan, added,
“We welcome Vietnam Airlines as our new partner in Jetstar
Pacific. We are confident this partnership between a low fares
carrier and a full service airline can replicate the success of
the two brand strategy used by Qantas and Jetstar in Australia.
Across Asia, we’re seeing the positive impacts of introducing a
new generation of customers to air travel, including Vietnam where
the penetration of low cost carriers is still relatively low. The
strength of our low cost model and the tremendous potential for
growth provide a unique opportunity for Jetstar in Vietnam. Our
partnership with Vietnam Airlines will help develop this.”
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