Qantas sticking with Jetstar Pacific
Qantas has said it will maintain its interests in Jetstar Pacific – Vietnam’s second largest airline – despite continuing harassment of the budget airline by the Vietnamese government.
Vietnam has set a September 15 deadline for Jetstar Pacific to discontinue using its orange-star logo and redo its entire livery on all of its aircraft.
Vietnam’s deputy minister of transportation, Pham Quy Tieu, told local reporters earlier this week, “Jetstar Pacific should avoid customers confusing the Vietnamese airline with Australian carrier Jetstar Airways.â€
Sources claim the Vietnamese government intends to buy back Qantas’ stake in Jetstar Pacific.
The state-owned budget airline was originally called Pacific Airlines until 2007, when a 27 percent stake was sold to Qantas making it the first joint venture airline project in Vietnam.
Qantas says it has no intention of selling out.
Corporate affairs chief, David Epstein, said the airline was confident about its investment in Vietnam and would be increasing its stake to 30 percent, the maximum limit for foreign interests.
”If we had concerns about our continued investment we would not be there,” he told the Sydney Morning Herald.
Qantas this week secured the release of two executives – seconded to Jetstar Pacific – who were barred from leaving Vietnam while state authorities investigated fuel-hedging losses at Jetstar Pacific in 2008.
Ian Jarrett
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