Qantas and Vietnam Airlines to invest $181.5m in Jetstar Pacific

The airlines “Queensland and Northern Territory Aerial Services” (QANTAS) and Vietnam Airlines will cooperate. The $ US139 million ($ 181.5 million) worth of investment is done to more than double the size of the Vietnamese low-cost carrier. This is used for Jetstar Pacific’s fleet to 30 fleets for the next four years. This investment plan can indeed be one of the greatest between the two countries so it is hoped to be able giving best impact the development of both of countries.

Take Advantage in Asian Flight Market

One of the reasons for this joint venture is to control flights in Asia. Qantas saw a promising and profitable opportunity in the Asian flight.There are still many routes in Asia that are not yet connected with flights. It is also the main reason why both airlines of both countries are willing to take the step of cooperation to invest in Jetstar Pacific. Taking the opportunity, this will be an expansion of either Qantas or Vietnam to target the Asian market that has not been so competitive.

Why Choose Jetstar Pacific?

Then the question is why the chosen is Jetstar Pacasif. Yes, one of the reasons because the airline has a lot of aircraft that can be rented. Well, the two airlines had planned to rent it for four years until 2020.The both airlines will boost the A320 fleet, but there are no any details of the financial investment required. As known that Jetstar Pacific has 12 aircraft and served on 23 domestic and international flight.

How is profit sharing?

The plan, the profit-sharing process will be done in different ways.It will be adjusted to the amount of investment value that will be issued by the two airlines. Qantas will provide $US42 million to Jetstar Pacific. Then for the amount to be earned, Qantas will only get a 30 per cent stake. Of course, the amount is smaller than that will be issued by Vietnam Airline as the owner of earnings its 70 per cent stake.

Target Flights

The main flight target is Singapore, Japan or Vietnam as the first half. However, it doesn’t close the possibility to expand it to other Asian levels. As the plan, both of Qantas and Vietnam Airlines to source the A320 aircraft needed for the Jetstar Pacific expansion. Both of them have the certain strategy to make this infestation to be more profitable as what you can read here.

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