As confirmed several months ago on this site Vietnam Airlines has
now taken the majority stake in Jetstar Pacific, along with Qantas increasing
its stake in the airline from 27 to 30 precent.
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
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.”
Chief Executive of the
Jetstar Group, Bruce Buchanan, said the strategic partnership with Vietnam
Airlines would strengthen Jetstar Pacific’s ability to create new travel demand
in the third most populous nation in Southeast Asia.
“Across Asia we are 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,” said Mr Buchanan.
“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
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’s existing CEO and Chairman were representatives
of former shareholder, SCIC. The Jetstar Group and Vietnam Airlines expect to
announce a new CEO and Chairman in coming weeks.
Mr Buchanan said Vietnam remained key to the Jetstar Group’s
expansion plans across Asia Pacific, where it is the region’s fastest growing
low fares carrier as well as the largest by revenue.
“Jetstar continues to leverage the exceptional economic growth
across Asia through strategic expansion of our network and fleet,” he added.
According to International
Air Transport Association (IATA), Vietnam will become the world’s second
fastest growing aviation market for domestic passengers by 2014.