VIETNAM-Jetstar has fended off reports that its Asian offshoot Jetstar Pacific is going to be absorbed into Vietnam Airlines due to the carrier’s ongoing financial problems.
A report in a Vietnamese newspaper claimed the structural change was going ahead as the low cost carrier was risking bankruptcy.
In a company statement by Jetstar the airline reiterated its commitment to Jetstar Pacific and dismissed claims that it is to be absorbed as part of a proposed airline deal.
Jetstar Pacific is majority owned by the Vietnamese State Capital Investment Corporation (SCIC) and 27 per cent is owned by the Qantas Group.
The misleading claims stem from reports of a proposed ownership swap between SCIC and Vietnam Airlines, a swap that the Qantas Group has publicly announced in a statement that it supports.
According to a Jetstar statement the proposed ownership swap with SCIC would leave the Qantas Group stake in the airline unchanged.
"Contrary to reports, no agreement has been formalised and the ownership structure for Jetstar Pacific remains unchanged,'' a Jetstar spokesperson said.
Meanwhile, the International Pilots Association said the move indicates the risks of the Qantas group branching out its operations into Asia.
The APIA claimed the airline has “failed” and now wants Qantas to explain why Jetstar Pacific has failed and to explain its losses.
Jetstar has faced a number of issues over the last few years, including safety violations and government investigations into fuel hedging losses that briefly saw two Qantas Executives barred from leaving Vietnam.
A report in a Vietnamese newspaper claimed the structural change was going ahead as the low cost carrier was risking bankruptcy.
In a company statement by Jetstar the airline reiterated its commitment to Jetstar Pacific and dismissed claims that it is to be absorbed as part of a proposed airline deal.
Jetstar Pacific is majority owned by the Vietnamese State Capital Investment Corporation (SCIC) and 27 per cent is owned by the Qantas Group.
The misleading claims stem from reports of a proposed ownership swap between SCIC and Vietnam Airlines, a swap that the Qantas Group has publicly announced in a statement that it supports.
According to a Jetstar statement the proposed ownership swap with SCIC would leave the Qantas Group stake in the airline unchanged.
"Contrary to reports, no agreement has been formalised and the ownership structure for Jetstar Pacific remains unchanged,'' a Jetstar spokesperson said.
Meanwhile, the International Pilots Association said the move indicates the risks of the Qantas group branching out its operations into Asia.
The APIA claimed the airline has “failed” and now wants Qantas to explain why Jetstar Pacific has failed and to explain its losses.
Jetstar has faced a number of issues over the last few years, including safety violations and government investigations into fuel hedging losses that briefly saw two Qantas Executives barred from leaving Vietnam.
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