The Qantas Group (QAN) welcomed a new partnership structure to strengthen and grow the Vietnam-based low fares carrier, Jetstar Pacific. Vietnam Airlines will take the majority share in Jetstar Pacific, currently held by the Vietnamese State Capital Investment Corporation (SCIC). Separately, the Qantas Group’s existing 27 per cent share in Jetstar Pacific has now increased to 30 per cent in-line with long-term commitments.
Chief Executive of the Qantas Group, Alan Joyce, said the new partnership with Vietnam Airlines would represent an extension of the dual brand strategy pioneered by Qantas and Jetstar, in one of the world’s fastest growing aviation markets. This partnership brings together the proven low cost model of Jetstar with the unique local knowledge and existing networks of national carrier, Vietnam Airlines,” said Mr Joyce. “We are confident this partnership between a low cost carrier and a full service airline in Vietnam can replicate the success of our Qantas and Jetstar strategy in Australia, and follows our recent partnership with Japan Airlines to form Jetstar Japan.”
Through the new partnership, Jetstar Pacific will receive an initial capital injection of AUD$25 million, including $7.5 million from the Qantas Group. 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.
Jetstar Pacific is Vietnam’s first value based carrier, operating a seven aircraft fleet of five Boeing B737-400 aircraft and two Airbus A320-200s. The Qantas Group has held an interest in the carrier since 2007; it transitioned from Pacific Airlines to Jetstar Pacific in May 2008. The airline operates almost 150 services a week to seven destinations within Vietnam (Da Nang, Hanoi, Hai Phong, Ho Chi Minh City, Hue, Nha Trang, and Vinh) and connects with Jetstar’s international network through flights to Singapore.
http://www.traderdealer.com.au/fundamentals/qan
Tags: Air Travel, Jetstar, QAN, Qantas, Vietnam Airlines
