Vietnam Airlines and the other shareholder of Jetstar Pacific have pledged to continue investment in the low-cost carrier, after it reported a profit for the first time in three years.
Jetstar Pacific was operating at a gain in the first nine months of this year, one of the carrier’s top officials told Tuoi Tre (Youth) newspaper on Monday, without specifying earnings.
The airline has recently restructured its operations and monitored expenses, while its market share has improved and fuel prices have fallen, the anonymous official said in explaining the positive business result.
National flag carrier Vietnam Airlines owns 70 percent of Jetstar Pacific, whereas Australia’s Qantas Airways holds the remaining 30 percent.
This is the first time the budget carrier has reported a profit since Vietnam Airlines acquired its stake, and put it under operational reform in 2012.
“Jetstar has gained the trust of Vietnam Airlines and the Qantas Group regarding its possible further development because of such successful restructuring efforts,” Vietnam Airlines general director Pham Ngoc Minh said in a statement.
Vietnam Airlines, Qantas Group and Jetstar Group, a subsidiary of the Australian carrier, have recently met to review the effectiveness of the restructuring of Jetstar in the last three years, and all agreed to continue investment in the low-cost carrier after the meeting.
Jetstar will continue receiving support from its two major shareholders to become “strong enough to compete with other low-cost carriers,” Minh said.
“We aim to have Vietnam Airlines and Jetstar collectively account for 70 percent of the Vietnamese domestic market,” he added.
“We will also seek to increase Jetstar’s fleet to 30 planes by 2020.”
Jetstar is offering 32 services to 16 local destinations and six international terminals.
In 2015 alone, the carrier inaugurated 11 new domestic services and five international routes in its bid to expand its network to Asian countries, according to The Saigon Times Online.
The carrier now has 12 planes in its fleet, including ten Airbus A320’s and two A321’s, and has served around 18 million passengers since 2012.
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Vietnam Airlines to keespan investing in Jetstar after first spanrofit in 3 yrs
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