|Officials from Jetstar and Pacific Airlines announce the establishment of Jetstar Pacific on Monday in HCM City||The second largest air carrier Pacific Airlines Vietnam will be renamed “Jetstar Pacific” as of May 2008, said a Pacific Airlines senior executive officer on Monday.
“Jetstar Pacific will be Vietnam’s first low cost airline which is established under a Business Service Agreement (BSA) between the Australian airline Jetstar and Pacific Airlines”, said Pacific Airlines CEO, Luong Hoai Nam who is also the new CEO of Jetstar.
The wide reaching Agreement for Jetstar Pacific includes the renaming of the airline, operating future flights within Vietnam and across Asia under the Jetstar brand, providing every day low fares and a standardized customer experience.
Vietnam Civil Aviation Department’s Deputy Chief, Lai Xuan Thanh, confirmed the BSA to form Jetstar Pacific is totally accordant with the country’s Civil Aviation Law and this will be the first airline in Vietnam to involve foreign partners.
The State Capital Investment Corporation (Vietnam) takes 74,42% of the Jetstar Pacific and Quantas Asia Investment (Singapore) invests 18%.
The CEO said under the BSA the implementation of the Jetstar brand would apply to all aspects of Jetstar Pacific, including marketing and advertising, aircraft livery, sales channels and employee uniforms.
He said the new airline would use a fleet of up to 30 Airbus A320 aircraft by 2014.
The first A320 is proposed to enter Jetstar Pacific’s operations in August 2008, supporting the ongoing development of a comprehensive domestic network within Vietnam, before undertaking future international expansion from late this year into markets likely to include Thailand, Singapore, Malaysia and Cambodia.
Qantas Group CEO Geoff Dixon said Jetstar would be one of the largest and fastest growing airlines brands in the region.
The Qantas Group, which made an investment of 18 per cent in Pacific Airlines in July 2007, will increase its investment in the airline to a 30 per cent holding in 2010.
“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,” Mr Dixon said.
Jetstar CEO Alan Joyce said the establishment of this Agreement placed the Vietnamese carrier in a strong position to leverage the successful Jetstar brand and business model.
“We have repositioned the airline as Vietnam’s first low cost carrier to enable its future sustainable expansion within Vietnam and into many international markets,” Mr Joyce said.
Jetstar CEO Alan Joyce and Jetstar Chief Financial Officer David Hall currently represent the Qantas Group on Jetstar Pacific’s six-member Board of Directors.
Key management roles in Jetstar Pacific now filled by Qantas and Jetstar executives. Over time most of these positions will be transferred to Vietnamese managers.
Jetstar is one of the most profitable and fastest growing airlines in Asia. It was voted in 2007 the World’s Best Low Cost Airline and Best Low Cost Airline in the Asia Pacific by SkyTrax World Airline Star Rating.