Speculation mounts over future of Jetstar’s Pacific arm

Ho Chi Minh City, Vietnam - November 27th, 2019: Airplane airbus A320 of Jetstar Pacific moving to runway prepare take off from Tan Son Nhat International Airport, Ho Chi Minh City, Vietnam.

Rumours of a future change in ownership of Jetstar’s Vietnam-based offshoot have emerged, with reports speculating Qantas could exit its minority stake in the airline.

Multiple reports from international and domestic media have alleged Qantas’ budget airline, Jetstar, is in discussions with its joint-venture partner Vietnam Airlines about the future of Jetstar Pacific.

It follows rumours aired by Vietnamese media that Qantas was moving to exit its 30 per cent stake in the airline.

Jetstar Pacific was established in 2007 under Alan Joyce (then leader of Jetstar) with Vietnam Airlines to build the flying kangaroo’s presence in Asia through the Jetstar brand.

According to VietnamNet, the two owners have been in discussions for “several months” about Vietnam Airlines taking full ownership of Jetstar Pacific, with talks ongoing.

Travel Weekly has reached out to Jetstar for comment.

However, in a statement to the The Sydney Morning Herald, a Jetstar spokeswoman said the airline was “in regular dialogue with our partner Vietnam Airlines about Jetstar Pacific, particularly given the challenges facing all carriers at present”.

“However, we don’t comment on speculation and we have no material changes to announce,” she said.

Oliver Lamb, managing director of Ailevon Pacific Aviation Consulting, told SMH he would not be surprised if Qantas exited Jetstar Pacific at a time when it was looking to save cash and reduce non-core operations.

“Everyone’s been wondering how long Jetstar Pacific’s operations were going to last, and whether or not it’s actually core to what Jetstar wants to achieve in Asia,” he told the outlet.

“If Qantas is looking to release cash or is looking at non-core assets, then Vietnam is probably central to that.”

An Airbus A350-900 operated by Vietnam Airlines (iStock.com/Pavel Byrkin)

The speculation over Jetstar Pacific mounts as Vietnam Airlines revealed its plan to divest its reported 49 per cent stake in Cambodia’s Angkor Air, as reported in post-audit notes to the airline’s 2019 consolidated financial statement released on Friday.

According to multiple reports, Vietnam’s national carrier linked the decision to divest in Angkor Air to the impacts of COVID-19 over the last three months.

Airlines internationally have been battered by international and domestic travel bans introduced to arrest the spread of the COVID-19 pandemic.

The International Air Transport Association (IATA) yesterday released updated analysis showing that the crisis will see airline passenger revenues drop by US$314 billion ($489 billion) in 2020 – a 55 per cent decline compared to 2019.

On 24 March, IATA estimated US$252 billion ($409.17 billion) in lost revenues (down 44 per cent versus 2019) in a scenario with severe travel restrictions lasting three months.

In Qantas’ case, this has seen the grounding of its entire fleet and the temporary standing down of two-thirds of its 30,000 employees.

Featured image: iStock.com/HuyThoai

Latest News

  • Health & Wellness
  • Luxury

Trisara showcases sustainable dining via wellspring program

Phuket-based resort Trisara is transporting guests from resort to farm to table then back again courtesy of a new limited-time program, Wellspring. The package is a collaboration with Tri Vananda, a US$182 million (AU $270 million) wellness community in northern Phuket, conceived by Montara Hospitality Group, the owners of Trisara. In addition to entitling guests […]

  • Aviation

Emirates SkyCargo expands fleet with five Boeing 777 freighters

Emirates SkyCargo announced an investment of US$1 billion (AU$1.484b) to expand its fleet with an order of five new Boeing 777 freighters. The investment follows a strong performance in the first quarter of the 2024/25 financial year. Emirates SkyCargo expects the new freighters to increase its capacity by 30 per cent. The increase enables the […]

  • Events
  • Tour Operators

ITE HCMC 2024 focuses on sustainable tourism for creating a future

The 18th annual International Travel Expo Ho Chi Minh City (ITE HCMC) will take place from 5 to 7 September at the Saigon Exhibition and Convention Center. Under the theme “Responsible Travel, Creating Future”, the expo will highlight its dedication to promoting sustainable tourism practices and showcasing innovative tourism products and services to meet rigorous […]

  • Appointments

Seasoned pro Chris Waite goes out on his own in corporate affairs & communications

Seasoned tourism and hospitality industry corporate affairs and communications professional Chris Waite has unveiled his new consultancy. Drawing on his 25 years of experience across Australia, Europe, and Asia, Chris Waite Corporate Affairs & Communications is dedicated to helping businesses build and safeguard their most valuable asset: their reputation. Waite will focus on delivering results through […]

  • News

Travel becomes the leading retirement priority in latest Equip Super research

A staggering 71 per cent of Australians are prioritising spending their retirement savings on travel, according to a recent survey by leading superannuation fund, Equip Super. Health concerns were ranked as second as the most significant priority in retirement with 56 per cent and spending on hobbies and interests takes the third spot at 54 […]