Jetstar Pacific Airways - partnership of Vietnam Airways and Jetstar Group

 Hanoi : Vietnam Airlines Company Limited (VNA) and Australia’s Qantas Group (parent company of the Jetstar Group) today announce a new partnership arrangement for Vietnam-based low fares carrier, Jetstar Pacific Airlines (JPA). 

 The state-owned capital in Jetstar Pacific Airlines (JPA) 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.

 The official signing was organized today in Hanoi in the presence of representative leaders of Vietnam Ministry of Finance, SCIC, Jetstar Group, and Vietnam Airlines.

 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 Government’s approval.

 In the JPA’s shareholder meeting held today 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 (Jetstar Pacific).

 The focus will be on serving domestic and international routes. Through the new partnership, Jetstar Pacific will receive an initial capital injection of AUD$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.

 Vietnam Airlines President and CEO – Dr. Pham Ngoc Minh said: “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 whole.”