Australian budget carrier group Jetstar is ending its involvement in Vietnam's aviation sector as an agreement has been reached to sell its 30% stake in Jetstar Pacific.
QANTAS – the parent company of Jetstar – reached an agreement with Jetstar Pacific majority stakeholder Vietnam Airlines regarding the sale of its minority stake to the Vietnamese national carrier after talks that started in April.
The rebranding of the carrier is subject to government approval, which would allow Vietnam Airlines to restructure the carrier. Jetstar Pacific operates flights to around 18 domestic and regional destinations with a fleet of around 15 Airbus A320s.
The future of the airline has been a reported as the topic of talks between QANTAS and Vietnam Airlines since April amid the COVID-19 pandemic.
“We’ve been in discussions with Vietnam Airlines for some time about the challenges facing Jetstar Pacific, which have obviously intensified through the COVID crisis," Mr Evans said in a statement.
With the decision, Jetstar Pacific will revert to its original name Pacific Airlines and become a fully owned subsidiary of Vietnam Airlines. Starting as a cargo airline in 1991, it became a passenger airline and became a part of the Jetstar Group in 2007. Since it was rebranded as part of the Jetstar group in 2008, it has seen domestic competition from recent newcomers such as VietJet and Bamboo Airways.
As it plans its exits the Vietnamese aviation scene, the Jetstar Group aims to focus on its other carriers such as Jetstar Asia in Singapore (49% stake) and Jetstar Japan (30%).