The budget airlines, Jetstar Pacific Airlines, may be merged with national carrier Vietnam Airlines in the near future, said an official from the Civil Aviation Administration of Vietnam (CAAV). 

The budget airlines, Jetstar Pacific Airlines, may be merged with national carrier Vietnam Airlines in the near future

According to Thang, Jetstar Pacific owed by State Capital Investment Corporation (SCIC), been taking losses for many years. The restructuring plan is essential to help the firm on the verge of bankruptcy. The Government shares the same opinion and has sent instruction to that effect to the Ministry of Transport.

“In recent meetings, the Government has discussed different options in restructuring Jetstar Pacific. It seems that a consensus is growing that the transfer of state-owned stake held by SCIC in Jetstar Pacific to Vietnam Airlines is the most feasible one. Exactly when the merger should take place will be decided by the Government,” Thang added.

SCIC now holds more than a 70% stake in Jetstar Pacific, the rest owned by Australia’s Qantas Airways and Saigontourist.

Once the merge carried out, Vietnam Airlines’ share in the domestic market is expected to increase to almost 100%.

Currently, Vietnam has seven licensed airlines: Vietnam Airlines, Jetstar Pacific, Vasco, Indochina Airlines, Air Mekong, VietJetAir and Vietstar Airlines.