Vietnam Airlines will hold 70 percent of stake in Qantas part-owned Jetstar Pacific Airlines, according to a statement from the Civil Aviation Administration of Vietnam.
With the transfer of the shares from Vietnam’s State Capital Investment Corp (70%) and Saigon Tourist Holding Co (3%) Vietnam Airlines will hold 90 percent of the market share of the local aviation market.
Jetstar Pacific, in which the Qantas group holds a 27 percent stake, has reported huge losses for the past several years, said CAAV.
The airline losses were mainly caused by skyrocketing fuel prices and fluctuation in the US dollar exchange rate, according to the report.
Jetstar Pacific’s revenue is 100 percent in Vietnamese dong, while more than 80 percent of its expenditure in US dollars.
Air Mekong and VietJet Air, both newly established carriers, also operate in Vietnam but on a very small scale. Vietjet will launch its Ho Chi Minh City to Hanoi services on December 25.
