Vietnam Airlines, Jetstar Airways Join Hands to Develop JPA

Vietnam Airlines and Australian Qantas Group, the holding company of Jetstar Group, recently signed a cooperation agreement to develop Jetstar Pacific Airlines (JPA).

 

Vietnam Airlines will take the majority share in JPA, currently held by the State Capital Investment Corporation (SCIC) under Decision 94/QD-TTg dated January 16, 2012 of the Prime Minister.

 

Vietnam Airlines will hold 69.93 percent of the low-cost carrier while Qantas will hold 27 percent. The former will sell 3 percent of the JPA stake to Qantas as agreed between Qantas Airways and SCIC.

 

On the day, JPA hosted the general shareholder meeting to discuss strategies and solutions to become a leading budget carrier in Vietnam. The company will operate domestic and international flight routes. It will receive an initial capital injection of AUD25 million. This will be directed towards fleet renewal, with the carrier’s current Boeing 737s replaced with new A320s from mid-2012. Moreover, the shareholders support growing the fleet to 15 A320s within the next few years.