Jetstar Pacific brand to disappear, as Qantas Group plans exit from Vietnam Airlines JV

After months of speculation surrounding the joint venture between Qantas Group and Vietnam Airlines, it has been confirmed that the Jetstar Pacific brand will be no more.

Pending government and regulatory approval, the low-cost carrier will return to its original brand name, Pacific Airlines, and feature a new logo and livery inspired by Vietnam Airlines’ brand colours and design.

The airline will also change its reservation system from Navitaire to Sabre to allow the low-cost carrier to streamline its bookings, network and customer functions with Vietnam Airlines.

Jetstar Group CEO Gareth Evans said the impact of the COVID-19 pandemic had identified opportunities to drive greater efficiencies.

“With a highly competitive domestic market in Vietnam and the disruption caused by the coronavirus, the time is right to take advantage of the strength and scale of Vietnam Airlines in its home market,” he said.

“Streamlining customer and booking functions will enable further cost savings and position the airline for a stronger future as international travel restrictions ease.”

Evans also confirmed to Travel Weekly that Qantas Group plans to offload its 30 per cent take in the airline – which had been heavily speculated – in the near future.

“We’ve been in discussions with Vietnam Airlines for some time about the challenges facing Jetstar Pacific, which have obviously intensified through the COVID crisis,” he said.

“Subject to the necessary approvals, our intention is to cease being a shareholder in the coming months so we can focus on our other airlines, and the changes to the brand in Vietnam announced today are part of that.”

Vietnam Airlines executive vice president and Pacific Airlines chairman Trinh Hong Quang said the change would unlock economies of scale and help the industry to embark on a post-coronavirus recovery.

“Low-cost carriers will play a certain role in supporting the return of travel as restrictions ease, and by streamlining functions, Pacific Airlines can remain competitive, inherit many of the efficiencies of Vietnam Airlines and continue to offer the low fares our customers expect,” he said.

“We are optimistic that the dual-brand strategy will leverage the brand and resources of Vietnam Airlines, and by undergoing innovation and improvisation, we will continue to see Vietnam Airlines Group maintain its position of leadership in the Vietnamese domestic market now and into the future.”

Featured image: iStock/anilbolukbas