Qantas Finalises 18 Per Cent Shareholding in Pacific Airlines
Sydney, 31 July 2007
The Qantas Group today finalised the first of three investment instalments taking its shareholding in Vietnam's second largest carrier, Pacific Airlines, to 18 per cent.
Qantas Chief Executive Officer Geoff Dixon said the Group would finalise its entire investment over the next two years to ultimately hold 30 per cent of Pacific Airlines.
He said Chief Executive Officer of Jetstar Airways Alan Joyce and Chief Financial Officer of Jetstar Airways David Hall would represent the Qantas Group on Pacific Airlines' six-member Board of Directors.
Qantas and Jetstar executives would also fill a number of key management roles in the airline to support the investment.
Mr Dixon said that the Qantas Group would continue to work with Pacific Airlines and investment partner SCIC to implement the agreed new business plan for the carrier which currently operated a fleet of single-class B737-400 aircraft on domestic routes in Vietnam.
"The initial strategy is to reposition Pacific Airlines as Vietnam's only low cost carrier to enable its future expansion both within Vietnam and - in the future - internationally, through short haul intra Asia services," Mr Dixon said.
Jetstar Chief Executive Officer Alan Joyce said the investment would support Jetstar's pan-Asian growth strategy and help enable the Qantas Group to extend its reach in the fast growing Asian region.
"By achieving a standardised low cost operation in line with Jetstar, future plans include establishing a franchise opportunity," Mr Joyce said.
Issued by Qantas Corporate Communication (Q3628)