Vietnam Airlines and the other shareholder of Jetstar Pacific have pledged to continue investment in the low-cost carrier, after it reported a profit for the first time in 3 years.

The airline has recently restructured its operations and monitored expenses, while its market share has improved and fuel prices have fallen, the anonymous official said in explaining the positive business result.

National flag carrier Vietnam Airlines owns 70% of Jetstar Pacific, whereas Australia’s Qantas Airways holds the remaining 30%.

A Jetstar Pacific plane sits on the tarmac at Tan Son Nhat International Airport in Ho Chi Minh City. Tuoi Tre

This is the first time the budget carrier has reported a profit since Vietnam Airlines acquired its stake, and put it under operational reform in 2012.

“Jetstar has gained the trust of Vietnam Airlines and the Qantas Group regarding its possible further development because of such successful restructuring efforts,” Vietnam Airlines general director Pham Ngoc Minh said in a statement.

Jetstar will continue receiving support from its two major shareholders to become “strong enough to compete with other low-cost carriers,” Minh said.

“We aim to have Vietnam Airlines and Jetstar collectively account for 70% of the Vietnamese domestic market,” he added.

(Source: tuoitrenews)