INGAPORE, Feb 22 (Bernama) -- Vietnam Airlines Company Ltd and Australia's Qantas Group (parent company of Jetstar Group) has announced a new partnership arrangement for Vietnam-based low-fare carrier Jetstar Pacific Airlines.

The state-owned capital in Jetstar Pacific, previously managed by Vietnam State Capital Investment Corporation (SCIC), has now been transferred to Vietnam Airlines according to the Prime Minister's Decision No. 94/QD-TTg which came into effect on Jan 16, 2012.

The official signing was organised in Hanoi Tuesday in the presence of representative leaders of Vietnam Ministry of Finance, SCIC, Jetstar Group, and Vietnam Airlines.

According to a joint statement, Vietnam Airlines inherits all the rights and obligations of a state shareholder in Jetstar Pacific and becomes the largest shareholder of 69.93 per cent stake.

Qantas Group is the second largest shareholder with 27 per cent capital ratio.

Vietnam Airlines is selling three per cent of its stake in Jetstar Pacific to Qantas Group in line with a long term commitment and following the existing agreement signed between SCIC and Qantas Airways with the government's approval.

In Jetstar Pacific's shareholders meeting held Tuesday in Hanoi, its members jointly agreed on the low-fare airline's strategic development plan and measures needed to secure the airline's sustainable and efficient growth.

According to this, Jetstar Pacific's board of directors continues to operate and develop the airline into a leading low-cost carrier in Vietnam.

Central to this is the development of a two-brand strategy with a full service carrier (Vietnam Airlines) and low-fare carrier (Jetstar Pacific).

The focus will be on serving domestic and international routes.

Through the new partnership, Jetstar Pacific will receive an initial capital injection of A$25 million.

This will be directed towards fleet renewal with the carrier's current Boeing 737s replaced with new A320s from mid-2012.

The shareholders support Jetstar Pacific's fleet to grow to 15 A320s within the next few years.

Source BERNAMA