After months of rumors about ownership restructuring, it has been announced that Vietnam Airlines will become the new majority stake-holder in budget airline Jetstar Pacific. Vietnam Airlines will hold approximately 70% of the shares with Australian Qantas holding the other 30%.
Under the new structure, the struggling Jetstar Pacific airline will receive $25 million in funding to upgrade its fleet. The new Jetstar pacific CEO and Chairman are expected to be named in the following weeks.
Following the Ministry of Finance and Civil Aviation Administration of Vietnam’s (CAAV) adjustment of ceiling prices last week, domestic airlines in Vietnam are raising their fares.
Budget carrier Jetstar Pacific has upped fares from Ho Chi Minh City to Vinh and Hai Phong from between VND950,000 and VND2.5 million (US$38-120) (excluding taxes); while flights from HCM City to Da Nang will cost VND490,000-VND1.64 million ($23.52-78.72).
Meanwhile, Vietjet Air said flights on its only route between Ho Chi Minh City and Ha Noi would remain at VND900,000 ($43.2) (excluding taxes).
Vietnam Airlines said it would raise fares by 20 per cent for economy and not more than 5 per cent for business class.
