Vietnam Airlines takes majority control of Jetstar
Not long after a series of job cuts and the axing of their Los Angeles – Auckland flights, Qantas Airways’ low-cost offshoot Jetstar Pacific will now see itself majority owned by Vietnam Airways.
Under the new arrangement confirmed in Hanoi late yesterday, national flag carrier Vietnam Airways will hold 69.93% of Jetstar Pacific, with Qantas Group owning 30% of the low-cost carrier.
The change will also see a new chief executive and chairman being appointed following the restructure.
Vietnam’s State Capital Investment Corporation (SDIC) had previously held the majority stake in Jetstar Pacific.
Vietnam Airlines and Jetstar said in a joint statement that the two carriers would work hand in hand to develop a two-brand strategy focused on serving both domestic and international routes.
Chief executive of Jetstar Group, Bruce Buchanan, said he welcomed Vietnam Airlines as a 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,” said Mr Buchanan in a statement today.
Jetstar Pacific would also receive a capital injection of A$25 million for renewal of their fleet, with the five Boeing 737s used currently to be replaced with new Airbus A320s from the middle of 2012.
Qantas said in a statement its contribution to the capital injection would be A$7.5 million.
“The shareholders support Jetstar Pacific’s fleet to grow to 15 A320s within the next few years,” the airline said.