Qantas Group airline Jetstar will now stretch its name to Asia.
Jetstar and Vietnam’s Pacific Airlines have entered into a major strategic and commercial partnership to grow the airline in Vietnam and Asia under the Jetstar brand.
As of 23 May 2008, Vietnam’s second largest carrier Pacific Airlines, will complete its transformation to become Vietnam’s first low cost, value name airline and will be renamed ‘Jetstar Pacific’ (Jetstar Pacific Airlines Joint Stock Aviation Company.)
The Qantas Group, which made an initial investment of 18% in Pacific Airlines in July 2007, will increase its investment in the airline to a 30% holding in 2010.
The State Capital Investment Corporation (SCIC) and shareholders of Pacific Airlines have approved the establishment of 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 BSA will support new commercial and distribution arrangements for Jetstar Pacific, the development of a Vietnamese website at Jetstar.com.
“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,” Geoff Dixon, chief executive of Qantas said.
Jetstar chief executive officer 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,” Joyce said.
Shares in Qantas fell 18 cents or 4.74% to $3.62.
