Nhan Dan – National flag carrier Vietnam Airlines officially became the largest shareholder of the budget airline Jetstar Pacific (JPA).
The co-operation agreement for developing the inexpensive airline JPA was signed by the national flag carrier Vietnam Airlines and Australia’s Qantas Group (the parent company of the Jetstar Group), according to the Prime Minister’s Decision No. 94/QD-TTg signed on January 16.
Under the agreement, Vietnam Airlines holds nearly 70% of JPA’s shares from the State Capital Investment Corporation (SCIC) and inherits all the rights and obligations of SCIC in JPA. Australia’s Qantas Group is the second largest shareholder with a capital ratio of 27% .
As planned, Vietnam Airlines will also sell 3% of its stake in JPA to Qantas Airways following the existing agreement signed between SCIC and Qantas Airways with the Government’s approval.
In addition, strategic orientation and necessary measures for helping JPA develop will focus on serving domestic and international routes, a measure jointly agreed upon by its members at JPA’s shareholder meeting.
Through the new partnership, JPA will receive an initial capital injection of AUD$25 million to replace its current Boeing 737 fleet with new Airbus A320 aircrafts by the middle of 2012 and will expand its fleet to 15 planes in the future.