Brand change and streamlining functions for Jetstar Pacific

Vietnam Airlines (VNA) and Qantas have agreed to introduce changes to Jetstar Pacific which will leverage the scale and brand strength of the majority shareholder, VNA, in its home market. These changes aim to improve the profitability of the low-cost carrier in response to the impact of COVID-19.

Pending government and regulatory approval, the low-cost carrier will return to its original brand name, Pacific Airlines, and feature a new logo and livery inspired by VNA' brand colors and design. Jetstar Pacific is set to officially operate under the new name Pacific Airlines upon authorities' approval.

The airline will also change its reservation system from Navitaire to Sabre, to allow the low-cost carrier to streamline its bookings, network and customer functions with VNA."

Vietnam Airlines Executive Vice President and Pacific Airlines Chairman, Trinh Hong Quang, said the change would unlock economies of scale and help the industry to embark on a post COVID-19 recovery.

"Low-cost carriers will play a certain role in supporting the return of travel as restrictions ease, and by streamlining functions, Pacific Airlines can remain competitive, inherit many of the efficiencies of Vietnam Airlines and continue to offer the low fares our customers expect.

"We are optimistic that the dual brand strategy will leverage the brand and resources of Vietnam Airlines, and by undergoing innovation and improvisation, we will continue to see Vietnam Airlines Group maintain its position of leadership in the Vietnamese domestic market now and into the future."

Qantas Group Executive and Jetstar Group CEO, Gareth Evans, said the impact of COVID-19 has identified opportunities to drive greater efficiencies.

"With a highly competitive domestic market in Vietnam and the disruption caused by the coronavirus, the time is right to take advantage of the strength and scale of Vietnam Airlines in its home market.

"Streamlining customer and booking functions will enable further cost savings and position the airline for a stronger future as international travel restrictions ease."

VNA and Qantas continue to review the low-cost carrier's structure and future shareholding arrangements.