Qantas (the flag carrier of Australia) has announced that it is going to give up its 30% stake in Jetstar Pacific (a Vietnamese low-cost airline based at Tan Son Nhat International Airport in Ho Chi Minh City), making it a wholly-owned subsidiary of Vietnam Airlines. This will lead to a slight change in the airline’s name as it will revert back to its original one, Pacific Airlines.
Founded in 1990 as Pacific Airlines, Jetstar Pacific was the 1st airline to be formed in Vietnam after a change of law. Although not a vital carrier for the country, it operated cargo charter flights to Thailand, Pakistan and France in cooperation with AOM Airlines, which, at the time, was the second-biggest airline in France (it ceased operations in 2001). In 2007, Qantas acquired an 18% stake in Pacific Airlines. The next year, the airline was renamed Jetstar Pacific, and 2 years later, Qantas increased its stake to 30%. Due to lack of funding and high fuel costs, 70% of its shares (in short, the part of the airline that wasn’t owned by Qantas) were transfered to Vietnam Airlines.
After several months of discussions between the 2 owners of Jetstar Pacific, yesterday, a decision was made: Vietnam Airlines would take complete control over the airline. Qantas wishes to concentrate more on the other subsidiaries of Jetstar, Jetstar Japan and Jetstar Asia Airways, and believes that Jetstar Pacific is not profitable enough for it to keep its stake. Nevertheless, a very interesting move. 16th of June 2020.