MIAMI – Qantas Airways (QF) and Vietnam Airlines (VN) have announced that they have reached an agreement to rebrand and restructure Jetstar Pacific (BL) as Pacific Airlines, in a closer commercial tie plan with the Asian company.
As the new Pacific Airlines, QF will exit its minority stake, so VN will now have full control over the low-cost carrier. In addition, the new brand colors and design will be based on those from VN.
Due to the restructuring, VN stakes (68.86%) will increase with 30% of QF’s shares sold. The residual 1.14% remains for Saigon Tourist Holding Company, according to ch-aviation.
While both major companies said that they will continue to review BL’s structure and future shareholding arrangements, the Australian airline puts an end to several years of losses through its stakes with this exit move.
Having signed a joint-venture partnership through the Jetstar brand in 2007, QF began a strategy to be present in Asia, but now it will focus on its other airlines, said CEO of QF’s budget division, Gareth Evans.
Evans also said that this time was the accurate one to take advantage of the “strength and scale” of VN as Vietnam is a highly competitive domestic market and the coronavirus had changed the trends with its disruption.
In addition, the Australian airline will remain a partner with low-cost Jetstar Asia Airways (3K) in Singapore, Jetstar Japan (GK), and Jetconnect (QF) in Oceania.
Pacific Airlines, a new strategy
On its part, VN will add the new airline as part of a dual-brand strategy to maintain its leadership in the domestic market.
The Executive Vice President of the company and now Chairman of Pacific Airlines, Trinh Hong Quang said the restructuring process would allow the major company to recover and grow in the future.
Hong Quang added that “low-cost carriers will play a certain role in supporting the return of travel as restrictions ease, and by streamlining functions, Pacific Airlines can remain competitive.”
Beyond commercial and marketing alignments with VN, Jetstar maintains a fleet of 15 A320-200 and a cost-saving reputation for its fares.
Regarding the lower prices, the rebranded company also announced that it would change its reservation system from Navitaire to Sabre to streamline its bookings, network, and customer functions.