Vietnam’s first low cost carrier expands fleet with $1 bln deal

By Dam Tuan July 12, 2016 | 05:00 pm PT

Jetstar has reached for the sky with an order for 10 new Airbus A320s.

Jetstar Pacific has signed a Memorandum of Understanding (MOU) with multinational aircraft manufacturer Airbus to order 10 A320 CEO Sharklet commercial aircraft valued at $980 million at list price.

The agreement was announced today during the Farnborough International Air show in the UK and will mark the first direct purchase of civil aircraft by Vietnam’s first low-cost airline with the Toulouse-based manufacturer.

“10 Airbus A320 CEO Sharklet aircrafts will be handed over to Jetstar Pacific in 2017 and this agreement marks a milestone in our development,” said Le Hong Ha, CEO of Jetstar Pacific.

Ha added that the "new aircraft will allow us to expand our operations on our international network from Vietnam as part of the wider Jetstar Group. With low operating costs and a comfortable cabin, the A320 enables us to offer our passengers a quality value-based product in a highly competitive market environment.”

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Representatives of Jetstar Pacific and Airbus have signed an MOU for 10 Airbus A320 CEO Sharklet aircraft. Photo from daidoanket.vn

The MOU comes shortly after Vietnam Airlines and Qantas announced they would inject $139 million into Jetstar Pacific over the next four years. .

John Leahy, Airbus Chief Operating Officer, said: “We are pleased to have signed our first MOU with Jetstar Pacific. The news reinforces the position of the A320 as the single aisle aircraft of choice in both the low-cost and full service sectors. We will look forward to working with Jetstar Pacific as it consolidates its position in the fast-growing Vietnamese market.”

Jetstar Pacific is a member of Jetstar Group, a leading low cost carrier in Asia Pacific. Jetstar Pacific is a joint venture between Vietnam Airlines (70 percent) and Australia’s Qantas Group (30 percent).

Based in Ho Chi Minh City, Jetstar Pacific currently operates a fleet of 12 leased A320 family aircraft flying to 28 domestic and regional destinations.

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