Qantas Reveals Big Plans for Jetstar Pacific with Vietnam Airlines
3rd Nov 2015
Australian carrier Qantas and the state-owned Vietnam Airlines have agreed to expand their joint venture Jetstar Pacific. This would double the size of JP's fleet to 30 planes in the next five years.
With this, Jetstar Pacific would become Qantas' largest Asian budget subsidiary, ahead of Jetstar Asia Singapore and Jetstar Japan. These two airlines have 18 and 20 planes at the moment, but Qantas recently announced plans to bring the number of aircraft at its Japanese arm to 50.
Vietnam Airlines chief executive Dr. Pham Ngoc Minh said the following after a meeting with chief executives from Qantas and Jetstar Group, Alan Joyce and Jayne Hrdlicka:
"Jetstar Pacific has made significant progress in recent years, cumulating in the low fares airline being profitable for the first nine months of calendar year 2015. With the increased demand for low fares travel in Vietnam, we expect to grow Jetstar Pacific to a fleet of up to 20 aircraft by 2020."
Jetstar Group's Jayne Hrdlicka explained the importance of Jetstar Pacific for the Jetstar's network across Asia-Pacific:
"Qantas has successfully implemented a dual-brand strategy in Australia with Jetstar and we are sharing this experience with Vietnam Airlines to do the same with Jetstar Pacific. We expect to continue to leverage the strengths of Vietnam Airlines, Jetstar and Qantas. This includes Jetstar Pacific accessing the benefits of the Qantas aircraft fleet order with Airbus."
Currently, Vietnam Airlines owns the majority 70 per cent share in Jetstar Pacific, while Qantas owns the remaining 30 per cent. Also, Jetstar Pacific and Vietnam Airlines own a combined 70 per cent share in the Vietnam market.
Jetstar Pacific started with six aircraft in 2013. Today it has 12 planes and flies to six international and 16 domestic destinations.