Low-cost carrier Jetstar Pacific, the Vietnamese offshoot of the Jetstar family, is poised for major expansion after ending last year with a small profit: VND 267 million (AUD 15,547).
It’s the first profit since Jetstar Pacific was founded in 2008. The carrier is a joint venture between Vietnam Airlines (which owns 70%) and Qantas (which owns the rest).
Jetstar Pacific chief executive Le Hong Ha told Vietnam’s Thanh Nien News that cutting costs, and increasing cooperation with Vietnam Airlines, had contributed to the positive results.
Shareholders have reportedly agreed to allocate USD 139 million to let Jetstar Pacific double its fleet size from the current 15 aircraft, over the next five years, Le Hong Ha said.
Thanh Nien News cited official figures showing Jetstar Pacific accounted for 14.9% of Vietnam’s domestic air passenger market last year. Vietnam Airlines holds 40.8% of the market and VietJet, a budget carrier, 36.3%.
Jetstar Pacific, which operates 31 domestic and international routes, emerged in 2008 from the restructuring of state-controlled charter cargo carrier Pacific Airlines. Qantas took a 30% stake and four years later, Vietnam’s sovereign fund, State Capital Investment Corporation, transferred its 70% stake to Vietnam Airlines.
Written by Peter Needham