Qantas Joins in Running Pacific Airlines

The Qantas Group officially joined in running low cost carrier Pacific Airlines from July 31 after signing a deal worth $50 million with the Vietnam’s State Capital Investment Corporation (SCIC) to buy 30 per cent stake of the airline, the Saigon Giai Phong reported.

 

SCIC will continue to hold 63 per cent of Pacific Airlines following this deal.

 

Under the deal, Jetstar chief executive, Alan Joyce, and the airline's chief financial officer, David Hall, will represent the Qantas Group on Pacific Airlines' six-member board.

 

Qantas and Jetstar executives will also fill a number of key management roles in the airline.

 

Qantas said it will eventually recruit Pacific as a franchise operating under its Jetstar brand, in its strategy to boost up presence in Asia.

 

The Group said it will also continue to work with Pacific Airlines and investment partner SCIC to implement an approved new business plan for the carrier, which initially is to run Pacific Airlines as Vietnam’s only low cost carrier and then expand its business regionally and internationally.

 

Pacific Airlines will open two new domestic flights, including HCMC-Nha Trang from Sep 21 and HCMC-Hue from Dec 1 of 2007.

 

Set up last August as the investment holding arm of the Vietnamese Government, SCIC now has around 500 equitized companies in its portfolio and is expected to facilitate strategic investment deals for several of the large corporations that will soon be on the equitization block. (Liberated Saigon)