Jetstar Pacific to be transformed into Pacific Airlines after major shareholder change

17:37 | 15/06/2020
A major change of shareholders prepares the low-cost airline Jetstar Pacific for a more sustainable future, flying under new colours and its new-old name reminiscent of its origin and its new main shareholder, Vietnam Airlines.
jetstar pacific to be transformed into pacific airlines after major shareholder change
A new logo and brand identity of Pacific Airlines in plan

Today (June 15, 2020), Vietnam Airlines and Qantas Group agreed to reconstruct Jetstar Pacific to enhance the airline's performance and business results.

Therefore, Jetstar Pacific will carry out necessary procedures to be renamed into Pacific Airlines, together with a new logo and brand identity, inspired by the main colours of Vietnam Airlines.

Pacific Airlines used to be the original name of this brand at the establishment in 1991. Whether the airline can now return to its original name or not depends also on the decision of authorities.

Furthermore, as part of the major shareholder change, Pacific Airlines will replace the current booking system by Qantas with the one by Vietnam Airlines to synchronise its flight management data and booking processes, together with other functions, for customers. Additionally, Vietnam Airlines will also consider restructuring Jetstar Pacific's current flight schedules.

Trinh Hong Quang, deputy general director of Vietnam Airlines cum chairman of Jetstar Pacific, recently revealed some information related to the restructuring of Jetstar Pacific.

“This airline cannot develop well despite being established for a few decades. After some careful analyses, we finally find a solution,” he said.

Between 2009 and 2019, low-cost airlines developed rapidly across the world, making up 30-40 per cent of the total market share. Specifically. low-cost airlines occupied 35 per cent in the US market, 42 per cent in Europe, 30 per cent in Asia-Pacific, and 50 per cent in Vietnam.

“The scale of Jetstar Pacific is too small for a low-cost airline to meet all demands with just 18 aircraft,” said Quang.

Moreover, Qantas Group, a member of the Jetstar’s board of management, is a private group, while Vietnam Airlines is a state-owned enterprise. The differences this entails could slow down a rapid development and possible breakthroughs of the airline.

“Using the Qantas Airways booking system, which is based in Australia, is a disadvantage due to conformity issues in the local market,” Quang added.

After realising these issues, Vietnam Airlines is now planning the restructuring of Jetstar Pacific's organisation and business measures.

Thus, both Qantas and Vietnam Airlines confirmed the necessity of restructuring the major shareholder position, and Qantas is ready to withdraw, leaving most of the shares to Vietnam Airlines.

“Vietnam Airlines will hold 98 per cent of Jetstar Pacific and restructure the airline in the way they want,” Quang said and confirmed that this low-cost airline would be able to survive this way.

In the near future, Vietnam Airlines and Pacific Airlines plan to provide attractive products meeting diverse demands of customers covering both the low-cost and high-end segments, thereby helping both airlines to utilise the advantages of each other and serve customers at affordable costs.

By Nguyen Huong

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Based on MasterCMS Ultimate Edition Ver 2.9 2020