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Vietnam Airlines subsidiary Jetstar Pacific begins to pursue faster expansion, starting with Macau

Analysis

Jetstar Pacific is resuming expansion as the Vietnamese low-cost carrier enters the international market and grows its A320 fleet. The expansion will see the low profile Jetstar Group affiliate/Vietnam Airlines subsidiary raise its profile and take on its younger and now bigger rival, VietJet Air.

Jetstar Pacific launched services to Macau on 28-Mar-2014, the carrier's first international destination since it adopted the Jetstar brand in 2008. Jetstar Pacific has largely languished over the last six years, growing its fleet by a paltry one aircraft as other LCCs in the region - including VietJet - have raced past.

The planned expansion of its network and fleet, starting with Macau and the delivery of a sixth A320, will usher in a new era for Jetstar Pacific. There are still opportunities for Jetstar Pacific as Vietnam remains a relatively under-penetrated market. But Jetstar Pacific faces challenges and a potential risk that its expansion could become a case of too little too late.

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