LookAtVietnam – Australian airline Qantas has announced it plans to raise its stake in Vietnam’s budget airline, Jetstar Pacific, to 30 percent by 2010.

According to Bruce Buchanan, managing director of Jetstar Airways, Qantas group has confirmed that changes in the capital structure recently allowed the budget airline to show impressive growth rate.

Jetstar Pacific started showing a profit for the first time in July 2009.

Mr Buchanan said Jetstar Pacific managed to cut expenses by 29 not including fuel, while it has raised its market share from 14 percent to 23 percent.

Meanwhile he also confirmed their commitment to the Jetstar brand name. It follows the company being asked by the Civil Aviation Authorities of Vietnam not to use the orange star and ‘Jet’ logo for fear that this may cause confusion with Jetstar Airways

He said the use of Jetstar brand name in Vietnam was now moving into line with international practices and requirements.

When asked about rumours that Qantas will withdraw capital from Jetstar Pacific if the Government does not accept the current brand name and logo, he said that Qantas has a firm determination to invest in Jetstar Pacific and in developing Vietnam’s aviation market.

He said that the percentage of occupied seats has increased from less than 80 percent to 85 percent while the number of flights departing on time has increased by 50 percent to 80 percent. In the first six months of the year, nearly one million passengers flew with Jetstar Pacific, an increase of 30 percent over the same period last year.

Ha Yen

Qantas plans to up Jetstar Pacific stake to 30 percent

Australian airline Qantas has announced it plans to raise its stake in Vietnam’s budget airline, Jetstar Pacific, to 30 percent by 2010.

Qantas now holds a 27 percent Jetstar Pacific share, while the State Capital Investment Corporation (SCIC) has 51 percent. A further 22 percent is held by other domestic investors.

According to Bruce Buchanan, managing director of Jetstar Airways, Qantas group has confirmed that changes in the capital structure recently allowed the budget airline to show impressive growth rate.

Jetstar Pacific started showing a profit for the first time in July 2009.

Mr Buchanan said Jetstar Pacific managed to cut expenses by 29 not including fuel, while it has raised its market share from 14 percent to 23 percent.

Meanwhile he also confirmed their commitment to the Jetstar brand name. It follows the company being asked by the Civil Aviation Authorities of Vietnam not to use the orange star and ‘Jet’ logo for fear that this may cause confusion with Jetstar Airways

He said the use of Jetstar brand name in Vietnam was now moving into line with international practices and requirements.

When asked about rumours that Qantas will withdraw capital from Jetstar Pacific if the Government does not accept the current brand name and logo, he said that Qantas has a firm determination to invest in Jetstar Pacific and in developing Vietnam’s aviation market.

He said that the percentage of occupied seats has increased from less than 80 percent to 85 percent while the number of flights departing on time has increased by 50 percent to 80 percent. In the first six months of the year, nearly one million passengers flew with Jetstar Pacific, an increase of 30 percent over the same period last year.

Ha Yen