Qantas launches Jetstar in Vietnam

14/04/2008
By: John Winters

Qantas Airways Limited (QAN) low-cost offshoot Jetstar has entered into a major strategic and commercial partnership with Vietnam’s Pacific Airlines. Qantas said Vietnam’s second largest carrier would transform to become Vietnam’s first low cost airline and will be renamed Jetstar Pacific.

Jetstar CEO Alan Joyce said the 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.

The agreement includes the renaming of Pacific Airlines, operating future flights within Vietnam and across Asia under the Jetstar brand, providing low fares and a standardized customer experience.

Qantas CEO Geoff Dixon said in joining Jetstar, the Vietnamese carrier would help form one of the largest and fastest growing airline brands in the region.

Qantas confirmed that the deal would see the placement of Qantas and Jetstar executives in key management roles within Jetstar Pacific.

The Aussie carrier will also be called upon to provide a range of aviation services to the new venture.

“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.

Qantas said that the first A320 is proposed to enter Jetstar Pacific’s operations in August 2008.

The company intends to initially grow services within Vietnam, before undertaking future international expansion from late this year into markets likely to include Thailand, Singapore, Malaysia and Cambodia.