Airline News
Qantas and Vietnam Airlines plan Jetstar expansion with Virgin Australia and Etihad extension likely
November 6th 2015
Qantas Airways and Vietnam Airlines (VNA) have agreed on the long-term expansion of their Jetstar Pacific joint venture. Read More » Under the plan, the Vietnamese low-cost carrier's A320 fleet would more than double to 30 aircraft by 2020, making it the largest of Qantas' Asian budget offshoots, ahead of Singapore's Jetstar Asia and Jetstar Japan, which have 18 and 20 aircraft, respectively, the Sydney Morning Herald reported. The extra aircraft, which would support Jetstar Pacific’s growth, would come out of Qantas’ 99-strong A320 order book, said Jayne Hrdlicka, Jetstar Group chief.
After a Sydney meeting with Qantas Group chief executive, Alan Joyce, and Hrdlicka, VNA chief, Dr Pham Ngoc Minh, said he was optimistic about the joint venture. "Jetstar Pacific has made significant progress in recent years, cumulating in the low fares airline being profitable for the first nine months of calendar year 2015," Pham said. "With the increased demand for low fares travel in Vietnam, we expect to grow Jetstar Pacific to a fleet of up to 30 aircraft by 2020."
VNA owns 70% of the Ho Chi Minh-headquartered Jetstar Pacific, while Qantas holds the remainder.
Combined, Jetstar Pacific and parent VNA have won a 70% market share in the fast-growing Vietnamese aviation sector. However, VietJet Air, founded in 2007, is quickly catching up, while making no pretence about its growth ambitions. In June, VietJet posted a firm order for six additional A321ceos, bringing its Airbus orders to 69 aircraft, with purchase rights for another 30.
In its “draft determination,” released on October 30, the Australian Competition and Consumer Commission (ACCC) agreed to reauthorize the Virgin Australia (VA)-Etihad Airways tie-up for another five years. Etihad, which owns 24.2% of VA Holdings, welcomed the provisional ruling, which would allow it to continue code-sharing with VA on Australia-Abu Dhabi, a route the ACCC said would not be viable for VA without the partnership and its onward connections.
The partners code share on 39 routes to Europe, the Middle East, Africa and Pakistan and to 52 destinations in Australia and Asia. “Our intention over the next five years is to expand our global reach and to enhance the guest experience for our shared customers,” said Etihad chief, James Hogan.
In August, the ACCC re-authorized VA and Delta Air Lines to coordinate their operations between Australia and the U.S. for a further five years.
In other Down Under aviation news, VA and Jetstar announced they had cancelled ten and 14 flights, respectively, to the resort island of Bali on Tuesday after volcanic ash made conditions near Denpasar Airport “unsafe for flying”, resulting in the facility’s closure. Both carriers will continue to monitor the situation.
