After almost four years of restructuring, Vietnam-based Jetstar Pacific Airlines, in which Qantas has a stake, is profitable. Other airlines in Vietnam are too.
Jetstar Pacific expects profits to grow this year as it benefits from low fuel prices and an improvement in Vietnam’s domestic economy.
Those two factors have combined to present most Vietnamese airlines with record revenue and profits.
Jetstar Pacific Airlines is owned by three partners: Vietnam Airlines (which holds 67.8%), Qantas (30%) and Saigontourist (2.14%).
Jetstar Pacific chief executive Le Hong Ha confirmed that the airline had recorded a profit for the first time in three years of operation.
Ha placed the profit at over VND 80 billion (nearly USD 4 million) in the nine-month period January-September 2015, largely due to lower fuel prices and more passengers.
With a fleet of 12 aircraft (seven aircraft more than in 2012), including two A321s and 10 A320s, Jetstar Pacific is operating 32 domestic and international air routes, with load factor averaging 89-90%. It carried about 4.5 million passengers in 2015, 2.3 times more than in 2012.
Qantas chief executive Alan Joyce said Qantas would continue to support Jetstar Pacific in sales, marketing and international cooperation activities with other Jetstar airlines, news site Vietnam.net reported. Jetstar Pacific will join Qantas to purchase new Airbus aircraft in future.
Meanwhile, Vietnam Airlines and Vietjet are set to compete fiercely this year in Vietnam’s domestic aviation market.
Vietnam Airlines is reportedly negotiating a strategic partnership with a leading aviation player in Japan.
In 2016, Vietnam Airlines is set to transport 19.2 million passengers, 10.6% more than in 2015. It is expects to post revenue of USD 3.4 million and a pre-tax profit of USD 102.2 million.
In the year ended December 2015, Vietnam Airlines conducted over 127,500 safe flights with a fleet of 94 aircraft, including two of the most modern and fuel-efficient planes in the sky – the A350 and B787-9 Dreamliner.
It transported more than 17.4 million passengers during the year, earning USD 3.08 billion in revenue and USD 62.2 million in pre-tax profit, exceeding targets by 129%. Those are the best results for Vietnam Airlines since its establishment 20 years ago.
Written by Peter Needham