Vietnam - Jetstar Pacific officially belongs to Vietnam Airlines

The Prime Minister, Nguyen Tan Dung, on January 16, 2012 issued a Decision No 94 on the transfer of all state capital in Jetstar Pacific Airlines Joint Stock Aviation Co (JPA- operating as Jetstar Pacific) from State Capital Investment Corp (SCIC) for Vietnam Airlines Company Limited, trading as Vietnam Airlines, the national flag carrier of Vietnam.

Lai Van Dao, SCIC's general director said that this is a transfer of all state capital but not a merger.

"We have negotiated with Qantas, with Vietnam Airlines and successfully completed with clear terms. Vietnam Airlines will inherit SCIC's state capital and will nominate candidates to JPA's director board" Dao said.

Earlier, the Vietnamese Ministry of Finance assigned SCIC to represent the state capital in JPA with 69.9% stake for building a low-cost airlines in Vietnam, on the basis of cooperation with Qantas Aviation Group (with 27% stake).

On January 17, 2012, SCIC's representative will work with parties to implement this transfer plan and organize the shareholders' meeting to approve the plan.

Mr Le Song Lai, SCIC's deputy general director, said that if the transfer affects competition in the market, it will be positive competition.

"Jetstar's customers are mainly medium-income earners, while those of Vietnam Airlines are medium and high income people. The two units can complement each other very well. The competition framework currently has the specified provision. In my opinion, the transfer is generally good, ensuring the stability of the market," said Lai.

JPA CEO expected the transfer will be completed prior to February 15, 2012.

Viet Biz 24

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