Jetstar Pacific plans fleet and international expansion for 2016 as VietJet competition intensifies

Vietnam's Jetstar Pacific is planning more rapid expansion in 2016 as it aims to grow its fleet by 50%, from 12 to 18 aircraft. Jetstar Pacific grew at a rate of nearly 40% in 2015, marking its biggest expansion since it launched in 2008.

The Vietnam Airlines-Qantas joint venture continues to expand domestically but will focus more on the international market in 2016, with a combination of new scheduled routes and charters. There are particularly promising opportunities for Jetstar Pacific in international markets where the Jetstar Group already has a strong presence, such as Bali and Japan.

Further domestic expansion is strategically necessary as the Vietnam Airlines Group responds to the rapid rise of VietJet. Domestic expansion may not be profitable given the current competitive environment, but Jetstar Pacific has an opportunity to improve on weak domestic yields by focusing more on interline and codeshare traffic.