CamelSquadron
"Vietnam(failure)"
Interesting because Jetstar Pacific is finally showing signs of being a success. It has made a profit in 2013.
Some press from today:
"In 2013, Jetstar Pacific served 2 million passengers with the aircraft use efficiency up by 37 percent and the seat occupancy rate of over 90 percent, the ideal rates for any airlines in the world. Jetstar Pacific plans to receive five more aircraft in 2014, by that time it would have 11 aircraft to be in service."
Another Amazing business strategy unravelling???
Australian airline
Qantas was in talks with the
State Capital Investment Corporation (SCIC), who was then managing the government's stake in Pacific Airlines, about a possible investment in the carrier.
[20][21] Three months later, Qantas agreed on a minority stake in Pacific as part of its plan to expand its
low-cost operations through
Jetstar in
Southeast Asia. The deal was finalised in July when Qantas acquired an 18% stake for US$30 million, with provisions to eventually increase the stake to 30%; SCIC held the majority of the remaining shares. The deal would see the carrier, now restructured into a low-cost airline, launch flights to the surrounding countries, and possibly southern Europe, with a fleet of 30 Airbus A320s by 2014; it would be renamed
Jetstar Pacific Airlines in May 2008.
[22][23][24][25]
As a low-cost carrier, JPA commenced flights to
Nha Trang and
Da Nang.
[26] Due to high fuel costs, Nha Trang was suspended, and the airline lost $22 million during the first ten months of 2008. Passenger service launches to Bangkok and
Siem Reap were deferred, and SCIC stated the airline would need US$35 million to operate in 2009.
[27][28]
Jetstar Pacific embarked on its fleet modernisation plan in 2009, as it replaced several Boeing 737-400s with leased A320s. It made its first profit (US$1.1 million) in July that year after long periods of losses. The airline expanded its domestic market share as it transported more than 1.5 million passengers in the first half of 2009.
[29][30] Despite these developments, the airline encountered branding issues when the CAAV in October decreed that it must replace its Jetstar brand and logo with a new identity; the CAAV cited possible consumer confusion with Jetstar Airways and that a foreign airline could potentially exploit the Jetstar Pacific's branding to advertise it products. Later that year, CEO Luong Hoai Nam suddenly quit the airline having served since 2004.
[29][30][31]
In January 2010, clarifications about Nam surfaced when Vietnamese authorities reportedly detained the former CEO and prevented
COO Daniela Masilli and
CFO Tristan Freeman from leaving the country. This was part of an investigation into
fuel hedging losses,
which reportedly had cost the airline US$31 million.[32][33][34] Qantas responded to the complication by replacing the two administrators.[35] Due to the investigation into fuel-hedging allegations, growth plans at the airline were stalled.[36]
Funding issues persisted through 2011. In addition to the fuel price fluctuations, compounded by the government-sanctioned fare cap, JPA had to address
lease and
maintenance fees for its aircraft.
[37] During the year, reports indicated that VAC would re-assume control of the carrier; according to Saigon Tiep Thi, the SCIC would transfer 70% of its shares to Vietnam Airlines. However, the Jetstar Group denied such speculation.[38][39] On 16 January 2012, the Vietnamese government confirmed the allegations by Saigon Tiep Thi by decreeing a transfer of SCIC shares to Vietnam Airlines, which took place in February.[40][41] The transfer brought forward plans by Vietnam Airlines to have its own LCC by 2014.
[36] As part of its current expansion plan, it is intended that Jetstar Pacific will have up to 15 Airbus A320s by the end of 2015.
[1]