Jetstar Group CEO Bruce Buchanan tells CAPA its Vietnamese affiliate, Jetstar Pacific, is planning to return its five B737-400s over the next two years and transition to an all-A320 fleet. Jetstar Pacific now operates only two A320s alongside the five B737-400s. Mr Buchanan says the carrier is now slated to take eight more A320s by the end of 2013, giving it a fleet of 10. He adds the “primary focus” at Jetstar Pacific is currently to stabilise the business and renew the fleet. Jetstar Pacific currently only operates domestically but Mr Buchanan says new routes to China are currently under consideration. [more-CAPA report]
Jetstar Pacific plans to phase out B737 fleet by end of 2013
You may also be interested in the following articles...
Australia-Vietnam growth rate to accelerate: Jetstar Airways and Vietnam Airlines launch new routes
The Australia-Vietnam market will experience a surge of capacity over the next few months as Jetstar Airways launches services to Ho Chi Minh from Melbourne and Sydney and Vietnam Airlines adds Sydney-Hanoi. There will be 24 weekly flights from Australia to Vietnam in Jun-2016, all with 787s, compared to only 14 weekly flights currently.
Jetstar Airways has not served Vietnam since 2012, when it dropped Darwin-Ho Chi Minh service. However, Vietnam is a strategically important market for the Jetstar Group, given its 30% stake in the fast growing Vietnamese LCC Jetstar Pacific. Vietnam Airlines owns a majority 70% stake in Jetstar Pacific and has a codeshare partnership with Qantas, although will compete with Jetstar in the Australia-Vietnam market.
Australia-Vietnam is a growing market with tremendous potential. However, the sudden influx of capacity will inevitably pressure already low yields. Load factors on Australia-Vietnam nonstop flights, which have improved significantly since Jetstar’s withdrawal in 2012, will also be pressured.
Jetstar Pacific 2017 outlook: third consecutive year of 40% growth as 10 A320ceos are delivered
Vietnam’s Jetstar Pacific is planning more rapid expansion in 2017 as it takes delivery of 10 A320ceos that were ordered in 2016. The Vietnam Airlines-Qantas joint venture intends to use the 10 aircraft for a mix of growth and replacements for wet leased aircraft.
The LCC has grown rapidly since its two shareholders decided to accelerate expansion in 2014, a strategically critical move for the Vietnam Airlines Group given the rapid growth of the Vietnamese privately owned LCC VietJet. Jetstar Pacific achieved passenger growth of approximately 40% in 2015 and 2016 – and expects similar growth in 2017.
Jetstar Pacific is mainly a domestic airline but has started to focus more on the more profitable international market. Further international expansion is expected in 2017, with several new scheduled and charter flights using the additional A320s. Meanwhile new Australia-Ho Chi Minh flights from sister LCC Jetstar Airways will provide an opportunity to further grow interline and codeshare traffic.