Qantas welcomed (21-Feb-2012) the new partnership structure of Vietnam-based Jetstar Pacific which sees Vietnam Airlines taking a 70% stake in the carrier and the Qantas Group holding 30%. Qantas CEO Alan Joyce stated the "partnership brings together the proven low cost model of Jetstar with the unique local knowledge and existing networks of national carrier, Vietnam Airlines". Under the partnership, the LCC will receive an initial capital injection of USD26.9 million which will allow the carrier to conduct a fleet renewal programme with its current Boeing 737 aircraft replaced with A320 aircraft from mid-2012. According to CAPA, Jetstar Pacific currently operates seven 737-400 and two A320 aircraft. [more - original PR]
Qantas welcomes new Jetstar Pacific partnership structure
You may also be interested in the following articles...
Vietnam Airlines 2017 outlook: slower growth and smaller profits as competition intensifies
Vietnam Airlines has grown rapidly and profitably over the last two years, despite intensifying from its fast-growing local rival VietJet Air. Vietnam Airlines is now only one of four airlines in Southeast Asia with more than 20 million annual passengers.
Passenger traffic has grown by more than 50% since VietJet’s launch at the end of 2011, while the flag carrier has accumulated approximately USD150 million in pre-tax profits. In 2016 Vietnam Airlines achieved 19% growth and record profitability.
However Vietnam Airlines plans to grow at a much slower rate in 2017, and intensifying competition will likely impact profitability. Opportunities for further domestic expansion are becoming more limited as the market becomes more saturated, while international expansion poses more challenges and risks.
Turbulence will hurt Southeast Asia’s airlines in 2017 as overcapacity bites
Southeast Asia is a region with enormous growth potential but a relatively cloudy outlook for airlines given the intense competition and overcapacity concerns. Demand is on the rise, boosted by a growing middle class, rising discretionary incomes and relatively strong economies.