Aviation

Speculation mounts over future of Jetstar’s Pacific arm

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



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Events

Spencer Travel conference goes off with a bang!

Don’t worry, it didn’t go off with a literal bang – although fireworks are always good fun at an event.

Share

CommentComments

Midweek Interview

Midweek catch-up with Sabre’s Darren Rickey

We caught up with SVP airline global sales at Sabre, who has been living it up in Barcelona and Southern France and honestly, we’re a little offended we weren’t invited.

Share

CommentComments

Hotels

Airbnb officially bans parties

The Airbnb party is officially gone! Now you’ll have to get pissed in a nearby park when you go on holiday.

Share

CommentComments

Hotels

TFE to bring Collection brand to Sydney

Complete with an infinity pool featuring sweeping city views, the new property is touted as a destination in itself, however, we can’t confirm that until we’re offered a free stay.

Share

CommentComments

Cruise

Avalon Waterways offers double Qantas Point incentive

Satisfy your point-junkie clients by scoring them four points per dollar spent on their next luxury river cruise.

Share

CommentComments

Aviation

Air New Zealand sets roll out date for long awaited bunk-beds in economy class

Praise the travel gods! Passengers will soon have the option to lay down in cattle class and we’re so excited we’ve decided to take our afternoon nap early.

Share

CommentComments

Aviation

Qantas proposes scrapping bonuses if it is “harmed”

Qantas has copped some bad press lately, but the silver lining is it’s a great excuse for Alan Joyce to get a nice makeover!

Share

CommentComments

Aviation

Boeing 737 MAX mid-air emergencies revealed in new investigation

Surprisingly the investigation came from the ABC and not from Air Crash Investigation, which kind of puts the show to shame a bit.

Share

CommentComments

Travel Agents

Western travel agents banned from booking Hajj pilgrimage

Those looking to complete Hajj will have to enter the Hajj lottery, which you are still astronomically more likely to win than the actual lottery.

Share

CommentComments

Wholesalers

Virtuoso uncovers key differences in how each generation travels

Meanwhile, Travel Weekly staff are conducting our own research to tap into the zoomer market by teaching the office dog TikTok dances. It’s not going well.

Share

CommentComments

Cruise

Royal Caribbean Group completes its comeback with all ships back at sea

To honour the milestone, all 63 ships in the group’s fleet sounded their horns at once, which most likely scared the sh*t out of nearby fishing boats and unsuspecting wales across the world.

Share

CommentComments

Travel Agents

Virgin teams up with Flight Centre for money-can’t-buy workshop

It’s the second time a Flight Centre partnership has come up this week and it’s only Tuesday! Skroo must be feeling extra convivial this week.

Share

CommentComments