Dec 10, 2011

Australia - Jetstar Pacific may not be merged with Vietnam Airlines, Qantas group confirms



Allaying to the rumours that Jetstar Pacific carrier may be merged into Vietnam Airlines, Australia’s Qantas Group confirmed that 27% of their ownership capital in Vietnam’s first low-cost air firm would be unchanged, the local newswire VnExpress reported.

The confirmation was written in Jetstar Group’s press release on December 8. The Qantas Group also refused all rumours on a merger.

The rumours came from reports on the exchange of ownership right between State Capital Investment Corp (SCIC) and Vietnam Airlines because SCIC holds majority stake of Jetstar Pacific and 27% belongs to Qantas Group.

“27% of Qantas Group as the parent company of Jetstar air firm will not be affected by the SCIC’s transfer”, the press release confirmed. “Actually there has no official agreement on the ownership right exchange and the ownership right of Jetstar Pacific is unmoved”.

“Vietnam Airlines is welcomed as a partner of Jetstar Pacific. We always maintain the commitment with Vietnam market as a part of our strategy expansion”, CEO of Jetstar Group, Bruce Buchanan announced.

Earlier, Dinh Viet Thang—Vietnam Aviation Authority also spoke that Jetstar Pacific is the joint stock company controlled by SCIC and partially held by the foreign partner. In the operation process, the low-cost air firm has certain contribution but its performance has not been much effective, leading to prolonged losses. Ministry of Finance proposed measures to restructure and readjust the firm.

“One of concerned measures is to assign ownership right of Jetstar Pacific to Vietnam Airlines”, Thang said.

Former Jetstar Pacific was Pacific Airlines formed by Saigontourist and Vietnam Airlines who both held 86% in 2004. Later the capital part of Vietnam Airlines in Pacific Airlines was transferred to the SCIC.

In 2007, Australian Qantas carrier acquired 27% stake of Pacific Airlines and changed its name to Jetstar Pacific. Majority of remaining stake of Jetstar Pacific is held by SCIC and Saigontourist.

VietBiz24



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