Qantas to sell its 30pc stake in Jetstar Pacific
After weeks of speculation, the Qantas Group confirmed discussions with Jetstar Pacific partner Vietnam Airlines.
Qantas is planning to sell its 30 per cent stake in Jetstar Pacific, which will see the low cost carrier return to its original brand name of Pacific Airlines.
After weeks of speculation, the Qantas Group confirmed discussions with Jetstar Pacific partner Vietnam Airlines (VNA) had led to agreement on a number of changes designed to improve the carrier’s profitability in response to the COVID-19 crisis.
These included operating under the name Pacific Airlines with a new logo and livery inspired by Vietnam Airlines’ brand design and colours.
The carrier would also change its reservation system to that used by VNA, to allow a streamlining of bookings, network and customer functions.
Established in 2007, as part of a strategy by Qantas to widen its presence in Asia through a series of partnerships using the Jetstar brand, Jetstar Pacific operated a fleet of 15 A320s on domestic and international routes.
Qantas paid $30m for an initial 18 per cent stake, which it gradually increased to 30 per cent.
Despite the booming Vietnamese travel market, Jetstar Pacific was believed to be in some financial strife, made worse by the COVID-19 crisis.
Qantas Group executive and Jetstar CEO Gareth Evans said discussions about the challenges facing Jetstar Pacific had intensified through the pandemic.
Focus on other airlines
“Subject to the necessary approvals, our intention is to cease being a shareholder in the coming months so we can focus on our other airlines, and the changes to the brand in Vietnam announced today are part of that,” Mr Evans said.
Vietnam Airlines executive vice president and Pacific Airlines’ chairman Trinh Hong Quang, said the changes 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,” said Mr Trinh.
“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.”
Vietnam Airlines owns a 68.85 per cent stake in Pacific Airlines, with the remaining 1.15 per cent of shares owned by various other Vietnamese interests.
No timeline has been set for the sale of Qantas’s stake in the carrier.
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