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Vietnam Airlines acquires Jetstar Pacific

Update: February, 22/2012 - 12:10

HA NOI – Vietnam Airlines Corporation will co-operate with Australia's Qantas Group to develop Jetstar Pacific (JPA), the first low-cost airline in Viet Nam, according to an agreement announced in Ha Noi yesterday.

Vietnam Airlines also reported that it has become a 70 per cent stakeholder in JPA while Australia's Qantas Group, the JPA's parent company, retains 27 per cent. As planned, Vietnam Airlines will sell the remaining three per cent to Qantas Airways.

On the same day, JPA also held a meeting with its shareholders to reach agreement on strategic orientation and necessary measures to help it develop and become the top low-cost airline firm in the country.

JPA will focus on exploiting domestic and international routes with high capacity. It is expected to receive initial capital of AUD25 million (US$26 million) to replace its current Boeing 737 fleet in favour of new Airbus A320 aircraft by the middle of this year and expand its fleet to 15 planes.

General Director of Vietnam Airlines Corporation Pham Ngoc Minh said the JPA's shareholders had reached agreement on developing JPA based on the combination between advantages of the low-cost airline model and the national flag carrier's potential and experience.

"We believe that this plan will create a new vitality for JPA, benefit passengers and contribute to developing Viet Nam airline market," said Minh.

Vietnam Airlines currently exploits 84 routes to 20 domestic and 27 international destinations, with more than 300 flights per day. Its fleet includes 75 modern planes such as the Boeing 777, Airbus A330 and Airbus A321/320.

The firm, which became a SkyTeam member in 2010, has planned to expand its fleet to 115 planes by 2015 and 170 by 2020 with planes such as the Airbus A350XWB and Boeing 787-9.

Jetstar Pacific is the first low-cost airline in Viet Nam, conducting more than 150 flights a week to seven destinations in cities such as Da Nang, Ha Noi, Hai Phong, HCM City, Hue, Nha Trang and Vinh. Its fleet has seven planes including the Boeing 737-400 and A320-200. -- VNS

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