BizLIVE - Qantas Group and Vietnam Airlines have committed to continue investing in low-cost carrier Jetstar Pacific (JPA).
Qantas Commits to Long-term Investment in Jetstar Pacific
A Jetstar Pacific plane. (Photo:
Vietnam Airlines Chief Executive Pham Ngoc Minh, who met chief executives of Jetstar Group and Qantas in Sydney last week, said the partners were committed to the low-cost airline’s future and make it a competitive budget airline.
Qantas Group will assist JPA in sales, marketing and international cooperation with other airlines bearing the Jetstar brand, said Alan Joyce, CEO of Qantas Group.
Jetstar Pacific has grown from five aircraft in 2013 to 12 aircraft by the end of 2015 and now operates to 16 domestic destinations and six international destinations. It has added three new international destinations this year and opened 11 new domestic routes, expanding its network to 32 domestic and international routes.
“With the increased demand for low fares travel in Vietnam, we expect to grow Jetstar Pacific to a fleet of up to 30 aircraft by 2020,” said Vietnam Airlines CEO Pham Ngoc Minh, adding Vietnam Airlines and JPA expect to retain their combined market share in Vietnam of 70%.
The majority stake in JPA held initially by the State Capital Investment Corporation was transferred to Vietnam Airlines in 2012 and the two carriers began operating in a dual brand strategy similar to Jetstar’s relationship with Qantas in Australia.
JPA now has a registered capital of 2.63 trillion dong ($117 million), in which Vietnam Airlines holds a 70% stake and the remainder by Qantas.
JPA reported a profit of 100 billion dong ($4.45 million) in the first four months of this year, the first profit after eight years of the tie-up with Qantas. The airline posted an accumulative loss of 2.48 trillion dong (roughly $120 million) at the end of 2011.