Monday, April 14, 2008

Business: Jetstar partner's with Vietnam's Pacific Airlines

Let's All Fly Jetstar Pacific

Ho Chi Minh City - Medianet International - AsiaNet - Qantas Group airline Jetstar and Pacific Airlines (the Pacific Airlines Joint Stock Aviation Company) have entered into a major strategic and commercial partnership to support the Vietnamese carrier's plan for future growth within both Vietnam and intra Asia markets under the Jetstar brand.

On 23 May 2008, Vietnam's second-largest carrier, Pacific Airlines, will complete its transformation to become Vietnam's first low-cost, value-based airline and is being renamed 'Jetstar Pacific' (Jetstar Pacific Airlines Joint Stock Aviation Company).

The State Capital Investment Corporation (SCIC) and shareholders of Pacific Airlines have approved the establishment of a Business Service Agreement (BSA) between the Australian airline Jetstar and Pacific Airlines under an agreed business plan, supported by a management team that includes Jetstar and Qantas executives.

The wide-reaching Agreement for Jetstar Pacific includes the renaming of the airline, operating future flights within Vietnam and across Asia under the Jetstar brand, providing everyday low fares and a standardized customer experience.

The BSA will support new commercial and distribution arrangements for Jetstar Pacific, the development of a Vietnamese website at Jetstar.com as a core distribution and revenue channel in Vietnam, and the introduction of a future fleet of up to 30 Airbus A320 aircraft by 2014 to support its expansion.

The first A320 is proposed to enter Jetstar Pacific's operations in August 2008, supporting the ongoing development of a comprehensive domestic network within Vietnam, before undertaking future international expansion from late this year into markets likely to include Thailand, Singapore, Malaysia and Cambodia.

A series of announcements were made jointly in Ho Chi Minh City today by Qantas Group Chief Executive Officer Geoff Dixon, Jetstar Chief Executive Officer Alan Joyce and Pacific Airlines Chief Executive Officer Luong Hoai Nam, accompanied by the Australian Ambassador to Vietnam, His Excellency Mr Bill Tweddell.

The Qantas Group, which made an investment of 18 per cent in Pacific Airlines in July 2007, will increase its investment in the airline to a 30 per cent holding in 2010.

Qantas Group CEO Geoff Dixon said that in joining Jetstar and its existing branded operations across Asia, Jetstar Pacific would help form one of the largest and fastest-growing airline brands in the region.

"Jetstar Pacific will be able to access and leverage the significant expertise and resources within the Qantas Group that will help enable its planned future growth," Mr Dixon said.

"This includes the placement of Qantas and Jetstar executives in key management roles within Jetstar Pacific, and the supply of a range of aviation services."

Jetstar CEO Alan Joyce said the establishment of this Agreement placed the Vietnamese carrier in a strong position to leverage the successful Jetstar brand and business model.

"We have repositioned the airline as Vietnam's first low cost carrier to enable its future sustainable expansion within Vietnam and into many international markets," Mr Joyce said.

"Jetstar Pacific will offer a comprehensive domestic and future intra Asia network from Vietnam by tapping into a rapidly-growing market and stimulating demand for air travel through low fares."

Jetstar Pacific CEO Luong Hoai Nam said that Jetstar Pacific would become part of one of the region's fastest-growing and exciting Pan Asian airline networks into the future.

"Our future success will be achieved through this innovative and unique partnership with Jetstar via a proven low cost airline business model and our ability to expand through the strong Jetstar brand," Mr Luong Hoai Nam said.

"We will be following in the footsteps of Jetstar's success by achieving the benefits of low fares leadership and strong and successful growth in other parts of the world.

"It is my vision that by delivering a high level of customer service, comparable to the best airlines in the world, combined with our commitment to delivering a low cost base, we will be able to lead the market in the region."

Mr Luong Hoai Nam said under the BSA the implementation of the Jetstar brand would apply to all aspects of Jetstar Pacific, including marketing and advertising, aircraft livery, sales channels and employee uniforms.

Jetstar Pacific today serves an existing seven destinations within Vietnam operating almost 130 weekly return services with an existing fleet of four single class Boeing 737-400s.

Mr Luong Hoai Nam said its future growth plans would support at least an eight fold rise in weekly operations under transition to an all Airbus A320 fleet of up to 30 aircraft.

The A320 fleet will be seat configured in single class for 180 passengers.

The A320 boasts the widest cabin and highest fuel and technology efficiencies of any aircraft in its class and will feature on-board product enhancements for Jetstar Pacific consistent with existing Jetstar branded operations in Australia and Singapore, including all leather seats, provision of hot meals available for purchase and improved freight capability.

"The addition of our first A320 into the airline in August 2008 will support an additional service between Ho Chi Minh City Da Lat and Ho Chi Minh City Buon Me Thout, in addition to launching three new direct routes from Hanoi to Da Nang, Hue and Cam Rahn commencing 1 June 2008," Mr Luong Hoai Nam said.

"We will also expand daily Ho Chi Minh City Hanoi frequencies and have plans for future growth from Hanoi to other Vietnamese cities including Da Lat, Buon Me Thout and Can Tho.

"Our re-launch of intra Asia services from late this year will allow our operations to make air travel more affordable to more people in Vietnam by offering greater access onto many international markets through our new airline model that offers low fares, more choice and great customer service."

Jetstar branded operations into Vietnam currently include a three times weekly Sydney Ho Chi Minh City service operated by an A330 and Singapore Ho Chi Minh City A320 services operating 16 times weekly.

Jetstar Pacific has also unveiled cabin crew uniforms and a new aircraft livery for its future fleet of A320s reflecting Jetstars distinctive brand colours of orange and black, and predominant silver aircraft livery. The aircraft will also feature a distinctive five-point star in orange on its tail and Jetstar.com on the livery.

New cabin crew uniforms were designed by Jetstar Pacific in conjunction with Jetstar. Black in colour, the smart uniforms feature Jetstar's orange brand colour within the traditional Vietnamese Ao Dai dress and highlights on the male cabin crew uniforms.

"Our fresh brand image for the future under Jetstar is best reflected through our strongest visual advertisements our crew and our aircraft," Mr Luong Hoai Nam said.

"The Jetstar in-flight service in Vietnam and on future intra Asia services will also reinforce what travellers will come to expect from an airline that combines every day low fares and delivering a positive travel experience."

Mr Luong Hoai Nam said his six point plan for Jetstar Pacific included:
* Operating a profitable and lowest cost airline in the Asia Pacific region enabling Jetstar Pacific to deliver consistent
and sustainable low fares;
* Achieving an effective operation with high on-time performance;
* Providing excellent customer service to all passengers;
* To constantly evolve the airline through growth and innovation;
* Provide high safety standards and a safe work environment;
* Be a community and environmentally friendly organisation.

Jetstar CEO Alan Joyce and Jetstar Chief Financial Officer David Hall currently represent the Qantas Group on Jetstar Pacific's six-member Board of Directors.

Key management roles in Jetstar Pacific now filled by Qantas and Jetstar executives include Chief Operating Officer, Chief Financial Officer, Chief Pilot and Heads of Ground Operations, Safety and Security.

Over time most of these positions will be transferred to Vietnamese managers.

Jetstar is one of the most profitable and fastest growing airlines in Asia. For the 2008 financial half year to 31 December 2007, the Jetstar Brands achieved AUD $113 million Profit before Tax result. It has carried over 24 million passengers since 2004.

Jetstar is an award winning airline and in 2007 was voted the Worlds Best Low Cost Airline and Best Low Cost Airline in the Asia Pacific by SkyTrax.

Jetstar Pacific will soon be unveiling an advertising campaign announcing the arrival of the Jetstar brand in Vietnam.

Mr Luong Hoai Nam said announcements supporting Jetstar Pacifics new fare offering, products and further commercial relationships to support the operation will be made in the near future.

With the launch of Jetstar Pacific, Jetstar airline brands will fly to over 40 destinations across Asia, the Asia Pacific and Australia.

CONTACT: Simon Westaway
General Manager Corporate Relations - Jetstar
M +61 (0) 401 994 627 simon.westaway@jetstar.com
Cao Hong Phuong
Marketing Manager Jetstar Pacific M +84 (0) 916 838 626
phuongch@pacificairlines.com.vn
Matthew Underwood
TQPR Vietnam M +84 (0) 908 658 893 matt@tqpr.com
SOURCE: Jetstar

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