Qantas takes Pacific stake
THE Qantas Group finalised the first tranche of its $US50 million ($58 million) three-stage investment in Vietnam's second biggest carrier yesterday.
The flying kangaroo now holds 18 per cent in Pacific Airlines and intends taking its stake to 30 per cent over the next two years.
Qantas plans to eventually include Pacific as a franchise operating under its Jetstar brand, as a part of a strategy to further expand its presence in Asia.
Under the deal, Jetstar chief executive Alan Joyce and the airline's chief financial officer, David Hall, will represent the Qantas Group on Pacific Airlines' six-member board.
Qantas and Jetstar executives will also fill a number of key management roles in the airline.
Mr Dixon said that Qantas would continue to work with Pacific Airlines and investment partner State Capital Investment Corp to implement an agreed new business plan for the carrier, which currently operates a fleet of single-class Boeing 737-400 aircraft on domestic routes in Vietnam.
"The initial strategy is to reposition Pacific Airlines as Vietnam's only low-cost carrier, to enable its future expansion both within Vietnam and, in the future, internationally, through short-haul, intra-Asia services," Mr Dixon said.
The new airline will see Jetstar's expanding Asia reach bolstered by Pacific's routes between Ho Chi Minh City and Da Nang and Hanoi, as well as international routes to Tapei.
Jetstar International and Jetstar Asia both serve Vietnam, which has a population of 85 million people, is a growing tourist destination from Australia and has strong potential for visiting friends and relatives traffic.
Qantas is also looking at opportunities beyond Vietnam and says the most likely markets are Indonesia, Thailand or the Philippines.
By Steve Creedy - News.com.au - August 1st, 2007.
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