22 Feb '12, 4am

Vietnam Airlines takes majority stake in Jetstar Pacific

Vietnam Airlines takes majority stake in Jetstar Pacific

SYDNEY: Australian carrier Qantas said that Vietnam Airlines will take a majority share in its Jetstar Pacific offshoot from the Vietnamese State Capital Investment Corporation. Under the arrangement, the Vietnamese airline will hold 69.93 percent of the low-cost airline, with Qantas owning 30 percent. "This partnership brings together the proven low cost model of Jetstar with the unique local knowledge and existing networks of national carrier Vietnam Airlines," Qantas chief Alan Joyce said on Wednesday. "We are confident this partnership between a low cost carrier and a full service airline in Vietnam can replicate the success of our Qantas and Jetstar strategy in Australia, and follows our recent partnership with Japan Airlines to form Jetstar Japan." Jetstar Pacific would receive a capital injection of A$25 million (US$26.6 million) for fleet renewal, with the five Boe...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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