The Qantas Group finalized the first tranche of its US$50 million three-stage investment in Vietnam's second biggest carrier Tuesday.
It now holds 18 percent in Pacific Airlines and intends taking its stake to 30 percent over the next two years, The Australian reported Wednesday.
Qantas plans to eventually include Pacific as a franchise operating under its Jetstar brand, as part of its strategy to further expand its presence in Asia.
Under the deal, Jetstar chief executive Alan Joyce and the airline's chief financial officer, David Hall, will represent the Qantas Group on Pacific Airlines' six-member board.
Qantas and Jetstar executives will also fill a number of key management roles in the airline.
Dixon said Qantas would continue to work with Pacific Airlines and investment partner State Capital Investment Corp to implement an agreed new business plan for the carrier, which currently operates a fleet of single-class Boeing 737-400 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," he said.
The new airline will see Jetstar's expanding Asia reach bolstered by Pacific's routes between Ho Chi Minh City, Danang, and Hanoi, as well as international routes to Tapei.
Source: The Australian