3:07:54 PM | 17/4/2008
Australia’s low cost carrier, Jetstar and Vietnam’s second biggest airline, Pacific Airlines, have set up a strategic and commercial partnership to develop Pacific Airlines in Vietnam and Asia market under the Jetstar brand, local media reported.
Pacific Airlines will be renamed with “Jetstar Pacific” as of May 2008, and Jetstar Pacific will be the first low cost airline in Vietnam jointly established under a Business Service Agreement (BSA) between the Australian airline Jetstar and Pacific Airlines.
Vietnam Civil Aviation Department’s Deputy Chief, Lai Xuan Thanh, confirmed the BSA to form Jetstar Pacific is in accordance with the country’s Civil Aviation Law and this will be the first airline in Vietnam to involve foreign partners.
Chief Executive Official (CEO) of Pacific Airlines, Luong Hoai Nam, said under the BSA the implementation of the Jetstar brand will apply to all aspects of Jetstar Pacific, including marketing and advertising, aircraft livery, sales channels and employee uniforms.
He said the new airline plans to use a fleet of 30 Airbus A320s by 2014. The first aircraft will be used this August, he said, adding that Jetstar Pacific will open more international flights, mostly to Thailand, Singapore, Malaysia and Cambodia.
The airline currently runs almost 130 flights a week between seven destinations in Vietnam, using four Boeing 737-400s. The frequency will fold eight when the airline replaces its fleet with A320s.
The Qantas Group, which invested a 18 percent stake in Pacific Airlines in July 2007, will increase its investment in the airline to a 30 percent stake in 2010. Currently, the State Capital Investment Corporation of Vietnam takes 74.42 percent of the Jetstar Pacific.
Qantas Group CEO Geoff Dixon said Jetstar will be one of the largest and fastest growing airlines brands in the region, adding that the establishment of this Agreement placed the Vietnamese carrier in a strong position to leverage the successful Jetstar brand and business model.
With the agreement, Jetstar Pacific expects to double its revenues to US$145 million this year.
Jetstar is one of the most profitable and fastest growing airlines in Asia. It was voted in 2007 the World’s Best Low Cost Airline and Best Low Cost Airline in the Asia Pacific by SkyTrax World Airline Star Rating. (The Youth, People’s Army)
Vietnamese
