Qantas Group and Pacific Airlines enters partnership to establish Vietnam LCC, Jetstar Pacific
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Southeast Asia,
Jetstar
Qantas Group airline, Jetstar, and Pacific Airlines have entered into a strategic and commercial partnership to support the Vietnamese carrier’s plan for future growth within both Vietnam and intra Asia markets under the Jetstar brand. On 23-May-08, Pacific Airlines completed its transformation to become Vietnam’s first low cost carrier and will be renamed ‘Jetstar Pacific’.
The State Capital Investment Corporation (SCIC) and shareholders of Pacific Airlines have approved the establishment of a Business Service Agreement (BSA) between Jetstar and Pacific Airlines under an agreed business plan, supported by a management team that includes Jetstar and Qantas executives.
The Agreement for Jetstar Pacific includes the renaming of the airline and operating future flights within Vietnam and across Asia under the Jetstar brand.
The BSA will support new commercial and distribution arrangements for Jetstar Pacific, the development of a Vietnamese website at Jetstar.com as a core distribution and revenue channel in Vietnam, and the introduction of a future fleet of up to 30 Airbus A320 aircraft by 2014 to support its expansion.
The first A320 is proposed to enter Jetstar Pacific’s operations in Aug-08, initially growing services within Vietnam, before undertaking future international expansion from late this year into markets likely to include Thailand, Singapore, Malaysia and Cambodia.
The Qantas Group, which made an initial investment of 18% in Pacific Airlines in Jul-07, will increase its investment in the airline to a 30% holding in 2010.
Qantas Group CEO, Geoff Dixon, said “Jetstar Pacific will be able to access and leverage the significant expertise and resources within the Qantas Group that will help enable its planned future growth… this includes the placement of Qantas and Jetstar executives in key management roles within Jetstar Pacific, and the supply of a range of aviation services.”
Jetstar Pacific currently serves seven destinations within Vietnam, operating 130 weekly return services with an existing fleet of four single class Boeing 737-400s.
In its initial growth phase, additional services will be added from Ho Chi Minh City to Da Lat and Buon Me Thout and three new direct routes from Hanoi to Da Nang, Hue and Cam Rahn.
Jetstar branded operations into Vietnam currently include a three times weekly Sydney-Ho Chi Minh City service operated by an A330 and Singapore-Ho Chi Minh City A320 services operating 16 times weekly.
With the launch of Jetstar Pacific, Jetstar airline brands will fly to over 40 destinations across Asia, the Asia Pacific, Australia and New Zealand.
Management roles within Jetstar Pacific currently filled by Qantas and Jetstar executives include Chief Operating Officer, Chief Financial Officer, Chief Pilot and Heads of Ground Operations, Safety and Security.
Meanwhile, Jetstar Pacific has also unveiled cabin crew uniforms and a new aircraft livery for its future fleet of A320s, reflecting Jetstar’s brand colours of orange and black.
© Centre for Asia Pacific Aviation. Date posted: 14-Apr-08
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Qantas Group and Pacific Airlines enters partnership to establish Vietnam LCC, Jetstar Pacific 
