Pacific Airlines Explained

Pacific Airlines should not be confused with Pan Pacific Airlines.

Airline:Pacific Airlines
Fleet Size:1
Destinations:22
Iata:BL
Icao:PIC
Callsign:PACIFIC
Parent:Vietnam Airlines (98%)
Headquarters:Ho Chi Minh City, Vietnam
Frequent Flyer:Lotusmiles

Pacific Airlines Joint Stock Aviation Company (operating as Pacific Airlines) is a low-cost airline and ground services provider headquartered in Tan Binh District, Ho Chi Minh City, Vietnam,[1] with its primary operating base at Tan Son Nhat International Airport.[2] From 2008 to 2020, it was known as Jetstar Pacific Airlines (as a subsidiary of Jetstar).

The airline began operations in 1991, flying chartered cargo services. From 1996 to 2005, the airline, along with other local companies, operated under the government-owned Vietnam Airlines Corporation. Having by now operated passenger services, Pacific Airlines then came under the control of the government itself. In 2007, the Vietnamese government sold a 30% shareholding to Qantas, and as such the airline adopted a low-cost operations model and adopted its name (Jetstar Pacific) on 23 May 2008, becoming part of the Jetstar network.[3] [4] [5]

In February 2012, Vietnam Airlines bought a 70% stake in the company.[6] As part of its expansion plan, it was intended that Jetstar Pacific will have up to 15 Airbus A320 aircraft by the end of 2015[7] and up to 30 aircraft by 2020.[8] In late 2020, Qantas sold its stakes in Jetstar Pacific to Vietnam Airlines and the carrier returned to its old brand name Pacific Airlines.[9] [10]

In March 2024, citing financial difficulties and pressure from lessors, Pacific Airlines has announced that the operator has temporarily suspended all of its services and flights and decommissioned its whole fleet. This wasn't mean bankruptcy or an effective dissolution of the airline, and the company has proposed meaningful restructuring while promised to restart its operations as soon as possible.[11] Currently, the company is still actively providing ground handling services to Bamboo Airways.[12] The airline resumed its nominal operations on 26 June 2024, using a single Vietnam Airlines airplane.

History

Early operations

Pacific Airlines was established in December 1990 and began operations in April 1991 with a start-up capital of US$2.47 million. It was the first carrier to be established in Vietnam following reforms that permitted foreign investment in the country's airlines. Pacific Airlines operated chartered cargo flights to Thailand, Pakistan and France in cooperation with AOM French Airlines.[13] [14] [15] In 1993, prior to the lifting of the US embargo against Vietnam, the airline signed a deal with United Airlines that would have involved the training of Pacific Airlines' personnel and that had provisions for cooperation on US–Vietnam services.[16]

In 1994, the Civil Aviation Authority of Vietnam (CAAV) proposed plans to the government about the possible trading of minority stakes of Vietnam Airlines, VASCO and Pacific Airlines to investors. With the lifting of the US embargo, the country was looking for funds for aircraft procurements.[17] Such plans did not materialise. However, in 1996, Pacific Airlines was consolidated with several air-service companies, including Vietnam Airlines, to establish Vietnam Airlines Corporation.[18] During the same year, Pacific Airlines wet-leased a Boeing 737-300 from Swiss charter carrier TEA Basel. In addition to its jointly serviced cargo destinations, Pacific had by now opened services to Hanoi, Hong Kong and Taipei.[19] [20]

In 2000, Pacific entered into an agreement with Greek charter airline Galaxy Airways whereby the Vietnamese carrier would operate flights to Taipei on its behalf.[21] In 2001, the airline's revenues totalled US$48 million, having made 3,600 flights using an Airbus A310 and two A321s.[22] From 2001 to 2004, a succession of regional and global events, namely the September 11 attacks, the 2003 invasion of Iraq, the SARS outbreak and a rise in oil prices, as well as misguided management decisions, contributed to a cumulative loss of more than  million at the airline.[15] Consequently, Vietnam Airlines Corporation in late 2004 submitted a report about Pacific Airlines to the government, who decreed that all of the carrier's shares belonging to the corporation must be transferred to the Ministry of Finance (MoF).[23] As a result, the MoF assumed control of 86.49% of shares, with Saigon Tourist (13.06%) and Tradevico (0.45%) making up the rest.[24]

The Ministry in January 2005 announced plans to sell all of its shares to increase the available capital by 20 times[15] [25] One prospective investor was Temasek Holdings, who was looking to inject US$50 million to revive the business, which might have entailed launching passenger flights to Japan, South Korea, Malaysia, Singapore and Thailand.[25] [26] Talks with various parties fell through. It was not until January 2007 when rumours circulated about another prospective investor.

Jetstar Pacific

Airline:Jetstar Pacific Airlines
Iata:BL
Icao:PIC
Callsign:PACIFIC EXPRESS
Commenced:
Ceased:
Fleet Size:Up to 18
Destinations:Up to 33
Parent:Vietnam Airlines
Headquarters:Ho Chi Minh City, Vietnam
Website:jetstar.com

Australian airline Qantas was in talks with the State Capital Investment Corporation (SCIC), who was then managing the government's stake in Pacific Airlines, about a possible investment in the carrier.[27] Three months later, Qantas agreed to a minority stake in Pacific as part of its plan to expand its low-cost operations through Jetstar in Southeast Asia. The deal was finalised in July when Qantas acquired an 18% stake for US$30 million, with provisions to eventually increase the stake to 30%; SCIC held the majority of the remaining shares. The deal would see the carrier, restructure as a low-cost airline and launch flights to the surrounding countries with a fleet of 30 Airbus A320s by 2014. It was renamed Jetstar Pacific Airlines (JPA, alternatively known as Jetstar Pacific) in May 2008.[28] [29] [30] [31]

JPA began its low-cost flights with service to Nha Trang and Da Nang. Due to high fuel costs, Nha Trang service was suspended, and the airline lost $22 million in 2008. Passenger service launches to Bangkok and Siem Reap were deferred, and SCIC stated the airline would need US$35 million to operate in 2009.[32] [33] Jetstar Pacific embarked on its fleet modernisation plan in 2009, as it replaced several Boeing 737-400s with leased A320s. It made its first profit (US$1.1 million) in July that year after long periods of losses. The airline expanded its domestic market share as it transported more than 1.5 million passengers in the first half of 2009.[34] [35] Despite these developments, the airline encountered branding issues when the CAAV in October decreed that it must replace its Jetstar brand and logo with a new identity; the CAAV cited possible consumer confusion with Jetstar Airways and that a foreign airline could potentially exploit the Jetstar Pacific's branding to advertise it products. Later that year, CEO Luong Hoai Nam suddenly quit the airline having served since 2004.[36] In January 2010, clarifications about Nam surfaced when Vietnamese authorities reportedly detained the former CEO and prevented COO Daniela Masilli and CFO Tristan Freeman from leaving the country. This was part of an investigation into fuel hedging losses, which reportedly had cost the airline US$31 million.[37] [38] [39] Qantas responded to the complication by replacing the two administrators.[40] Due to the investigation into fuel-hedging allegations, growth plans at the airline were stalled.[41]

Funding issues persisted through 2011. In addition to the fuel price fluctuations, compounded by the government-sanctioned fare cap, JPA had to address lease and maintenance fees for its aircraft.[42] During the year, reports indicated that VAC would re-assume control of the carrier; according to Saigon Tiep Thi, the SCIC would transfer 70% of its shares to Vietnam Airlines. However, Jetstar denied such speculation.[43] [44] On 16 January 2012, the Vietnamese government confirmed the allegations by Saigon Tiep Thi by decreeing a transfer of SCIC shares to Vietnam Airlines, which took place in February.[45] [46] The transfer brought forward plans by Vietnam Airlines to have its own LCC by 2014. As part of its current expansion plan, it is intended that Jetstar Pacific will have up to 15 Airbus A320s by the end of 2015. The remaining 30% of Jetstar Pacific was held by Qantas[47] (most likely for naming rights).

Return as Pacific Airlines

In June 2020, Vietnam Airlines announced that it would takeover all Qantas's shares and increase its ownership of Jetstar Pacific to 98%.[48] The airline will no longer be operating under the Jetstar brand, but will revert to its original name Pacific Airlines. The ticketing system will also be migrated from the Qantas-based system used by Jetstar to the Sabre system used by Vietnam Airlines.[49]

Financial issues & restructuring proposal

Approximately one year after the Qantas withdrawal, in June 2021, Vietnam Airlines has declared that the impact of COVID-19 has resulted in the financial situation of Pacific Airlines being "extremely serious", posing the possibilities of insolvency and termination of operations. The Vietnamese state-owned flag carrier is looking for investors in order to restructure Pacific Airlines, however, it was revealed that the investor selection process faced many legal and other obstacles due to the fact that it (both Vietnam Airlines and Pacific Airlines) is a state-owned enterprise, admitting that the situation of Pacific Airlines "would be at risk" if no agreement is reached.[50]

In March 2024, due to serious difficulties, Pacific Airlines has declared pausing its operations, with its parent Vietnam Airlines handling all the affected customers.

The carrier restarted operations by June 2024 with three Airbus A321 from Vietnam Airlines.[51]

Destinations

See main article: List of Pacific Airlines destinations.

As of 2020, Pacific Airlines operates more than 40 daily flights to domestic destinations from its main operating base at Tan Son Nhat International Airport.[52]

Codeshare agreements

Pacific Airlines' only codeshare agreement is with Vietnam Airlines.

Fleet

, Pacific Airlines operates the following aircraft:[53] [54]

Pacific Airlines fleet
AircraftIn fleetOrdersPassengersNotes
CYTotal
Airbus A321-200—28195203To be dry-leased from Vietnam Airlines to retain the carrier's AOC[55]
1—16168184
Total13

See also

External links

Notes and References

  1. Web site: Jetstar . Jetstar. 17 July 2013 . JETSTAR PACIFIC (VIETNAM) Address 112 Hong Ha Ward 12 Tan Binh Dist. Ho Chi Minh City, Vietnam . dead . https://web.archive.org/web/20130715034757/http://www.jetstar.com/vn/en/home . 15 July 2013 .
  2. News: Directory: World Airlines . . 60 . 10 April 2007.
  3. Qantas buys into Vietnam Australian Aviation issue 238 June 2007 page 14
  4. Web site: Ionides, Nicholas . Qantas's Jetstar mulls over 'very large' Airbus A320 order . 26 July 2007 . FlightGlobal. 15 July 2013 . https://web.archive.org/web/20130621212602/http://www.flightglobal.com/news/articles/qantass-jetstar-mulls-over-very-large-airbus-a320-215772/ . 21 June 2013 . dead .
  5. News: Jetstar links with Vietnamese Pacific . 14 April 2008 . Sydney Morning Herald. 29 July 2013 . https://web.archive.org/web/20130601005042/http://news.smh.com.au/business/jetstar-links-with-vietnamese-pacific-20080414-25ym.html . 1 June 2013 . dead .
  6. Web site: About Jetstar Pacific in Vietnam . 7 April 2016 . 14 June 2016 . https://web.archive.org/web/20160614141726/http://www.jetstar.com/vn/en/about-us/our-company/jetstar-pacific . dead .
  7. Web site: Anh, Minh. Jetstar Pacific: Lỗ 5 năm, vẫn phải làm!. vi. VnEconomy. 14 January 2013. 15 July 2013.
  8. News: Creedy, Steve. Jetstar Pacific fleet tipped to double. 3 November 2015. The Australian.
  9. Web site: Qantas to sell stake in Jetstar In Jan 2023 Pacific. 2021-02-22. Australian Aviation. en-AU.
  10. Web site: Brand Change and Streamlining Functions for Jetstar Pacific. 2021-02-22. spirit.vietnamairlines.com.
  11. Web site: Curran . Andrew . Viet Nam's Pacific Airlines pauses ops, hands over aircraft . 2024-03-26 . ch-aviation . en.
  12. Web site: 2024-01-01 . Vietnam's Bamboo Airways, Pacific Airlines begin ground handling partnership . 2024-06-03 . Tuoi Tre News . en-US.
  13. Web site: About Pacific Airlines. Pacific Airlines. 17 July 2013. https://web.archive.org/web/20051228021617/http://www.pacificairlines.com.vn/Introduction.asp. 28 December 2005.
  14. Web site: World Airline Directory. 24–30 March 1993. Flight International. 14 July 2013.
  15. Web site: MoF plans to offload shares of Pacific Airlines to boost stakes . 27 January 2005. Ministry of Finance. 14 July 2013 . dead . https://web.archive.org/web/20150918210920/http://www.mof.gov.vn/portal/page/portal/mof_en/133241342/pr?p_page_id=2454720&item_id=2738766&p_details=1 . 2015-09-18.
  16. Web site: Northwest sees new labour options. 26 July – 3 August 1993. Flight International. 14 July 2013.
  17. Web site: Vietnam plans sell-off. 16–27 March 1994. Flight International. 14 July 2013.
  18. Web site: Eder, Alex . Pacific Airlines wird Jetstar Pacific . de . 24 April 2008 . Aerosecure . 15 July 2013 . https://web.archive.org/web/20140607000146/http://www.aerosecure.de/news/2979-pacific-airlines-wird-jetstar-pacific.php . 7 June 2014 . dead .
  19. Web site: TEA extends its Vietnamese links. 19–25 June 1996. Flight International. 14 July 2013.
  20. Web site: World Airline Directory. Flight International. 3–9 April 1996. 14 July 2013.
  21. Web site: Galaxy signs a deal with Pacific Airlines to fly Vietnamese routes. 5–11 December 2000. Flight International. 14 July 2013.
  22. Web site: Pacific Airlines hits revenue turbulence. https://web.archive.org/web/20140611110946/http://www.highbeam.com/doc/1P1-48991239.html. dead. 11 June 2014. Vietnam Investment Review. Son, Nguyen. 10 December 2001. Worldsources Online . 15 July 2013.
  23. Web site: Restructuring Pacific Airlines . 25 January 2005 . Ministry of Finance . 14 July 2013 . https://web.archive.org/web/20150918214233/http://www.mof.gov.vn/portal/page/portal/mof_en/133241342/pr?p_page_id=2454720&item_id=2507834&p_details=1 . 18 September 2015 . dead .
  24. Web site: About Pacific Airlines. Pacific Airlines. https://web.archive.org/web/20070128040228/http://www.pacificairlines.com.vn/Introduction.asp. 28 January 2007. 17 July 2013.
  25. News: New staff to revive Pacific Airlines . 10 March 2005 . Viet Nam News . 14 July 2013 . https://web.archive.org/web/20150626172446/http://vietnamnews.vn/industries/140763/new-staff-to-revive-pacific-airlines.html . 26 June 2015 . dead .
  26. Web site: Temasek Holdings may invest in Pacific Airlines. Ministry of Finance. 16 May 2005. 15 July 2013.
  27. News: Nhat Lam, Nguyen. Qantas in talks to buy stake in Vietnam's Pacific. Reuters. 24 January 2007. 15 July 2013.
  28. News: Qantas buys Vietnam airline stake . BBC News. 26 April 2007 . 15 July 2013 . https://web.archive.org/web/20160306144756/http://news.bbc.co.uk/2/hi/business/6595657.stm . 6 March 2016 . dead .
  29. Web site: First low-cost airline established in Vietnam . 17 April 2008 . Ministry of Natural Resources and Environment . 15 July 2013 . https://archive.today/20130717085825/http://www.monre.gov.vn/v35/default.aspx?tabid=675&CateID=54&ID=42844&Code=AR6TQ42844 . 17 July 2013 . dead .
  30. News: Creedy, Steve . Jetstar flies into Vietnam venture . 14 August 2008 . The Australian . 15 July 2013 . https://web.archive.org/web/20160305101439/http://www.theaustralian.com.au/business/aviation/jetstar-flies-into-vietnam-venture/story-e6frg95x-1111116052486 . 5 March 2016 . dead .
  31. News: Qantas acquires shareholding in Pacific Airlines . 1 August 2007 . Thanh Nien News . 15 July 2013 . https://archive.today/20130717085812/http://www.thanhniennews.com/2007/pages/20078110453030566.aspx . 17 July 2013 . dead .
  32. News: Jetstar Pacific to cut flights to Vietnam's Nha Trang. 15 August 2008. Reuters. 15 July 2013.
  33. Web site: Jetstar Pacific – Largest shareholder seeking to reduce holding in loss-making LCC. 11 December 2008. Centre for Aviation. 15 July 2013.
  34. News: Mong, Binh . Jetstar Pacific says will work with authorities over brand . 2 November 2009 . Saigon Times Daily. 15 July 2013 . https://web.archive.org/web/20140407084519/http://english.thesaigontimes.vn/Home/features/general/7234/ . 7 April 2014 . dead .
  35. Web site: Jetstar Pacific faces a branding problem. 17 November 2009. Centre for Aviation. 15 July 2013.
  36. News: Easdown, Geoff . Ideology clash as Jetstar Pacific chief quits . Herald Sun. 18 November 2009 . 15 July 2013 . https://web.archive.org/web/20160312144154/http://www.heraldsun.com.au/businessold/ideology-clash-as-jetstar-pacific-chief-quits/story-e6frfh4f-1225799178251 . 12 March 2016 . dead .
  37. Web site: Jetstar Pacific execs held in Vietnam following fuel hedging losses. FlightGlobal. 8 January 2010. 16 July 2013.
  38. News: Easdown, Geoff . Vietnam detains Aussie chiefs after airline's $31m budget blowout . Herald Sun . 8 January 2010 . 17 July 2013 . https://archive.today/20130717145939/http://www.heraldsun.com.au/news/australian-jetstar-workers-kept-in-vietnam-as-government-investigates-airlines-operations/story-e6frf7jo-1225817430192 . 17 July 2013 . dead .
  39. News: Charges dropped against former Jetstar Pacific director . VietnamNet Bridge . 6 November 2010 . 17 July 2013 . https://web.archive.org/web/20160304131545/http://english.vietnamnet.vn/fms/society/1369/charges-dropped-against-former-jetstar-pacific-director.html . 4 March 2016 . dead .
  40. News: O'Sullivan, Matt . Jetstar drops staff into troubled Vietnam venture . The Age. 3 May 2010 . 17 July 2013 . https://web.archive.org/web/20160328073959/http://www.theage.com.au/business/jetstar-drops-staff-into-troubled-vietnam-venture-20100502-u1f3.html . 28 March 2016 . dead .
  41. Web site: Outlook of Jetstar Pacific uncertain with possible Vietnam Airlines stake . 24 October 2011 . Centre for Aviation . 18 July 2013 . https://web.archive.org/web/20121106232258/http://centreforaviation.com/blogs/aviation-blog/outlook-of-jetstar-pacific-uncertain-with-possible-vietnam-airlines-stake-61145 . 6 November 2012 . dead .
  42. News: Yen, Ha . Jetstar Pacific now thirsty for capital: General Director . VietnamNet Bridge . 9 June 2011 . 19 July 2013 . https://web.archive.org/web/20110617000454/http://english.vietnamnet.vn/en/travel/9216/jetstar-pacific-now-thirsty-for-capital--general-director.html . 17 June 2011 . dead .
  43. News: 70 percent of Jetstar Pacific stakes may fall into the hands of Vietnam Airlines. 12 May 2011. VietnamNet Bridge. 19 July 2013. 9 August 2020. https://web.archive.org/web/20200809222716/https://english.vietnamnet.vn/en/business/16106/70-percent-of-jetstar-pacific-stakes-may-fall-into-the-hands-of-vietnam-airlines.html. dead.
  44. News: Jetstar Pacific not being taken over, group says . 9 December 2011 . Thanh Nien News . 19 July 2013 . https://web.archive.org/web/20120111130554/http://www.thanhniennews.com/2010/pages/20111209-jetstar-pacific-not-being-taken-over.aspx . 11 January 2012 . dead .
  45. News: Binh, Nguyen . Vietnam Airlines to hold state stake in Jetstar Pacific . The Saigon Times . 30 January 2012 . 19 July 2013 . https://web.archive.org/web/20140309154317/http://english.thesaigontimes.vn/Home/business/other/21495/ . 9 March 2014 . dead .
  46. News: Vietnam Airlines, Qantas in deal to develop Jetstar Pacific . VietnamNet Bridge . 23 February 2012 . 11 July 2013 . https://web.archive.org/web/20160304130850/http://english.vietnamnet.vn/en/business/19175/vietnam-airlines--qantas-in-deal-to-develop-jetstar-pacific.html . 4 March 2016 . dead .
  47. Web site: Jetstar Pacific Jetstar. Jetstar.com. Jetstar Pacific Airlines. 3 October 2016. 5 June 2017. https://web.archive.org/web/20170605083315/http://www.jetstar.com/vn/en/about-us/jetstar-group/jetstar-pacific. dead.
  48. Back to the Future Airliner World August 2020 page 17
  49. Web site: Thương hiệu Jetstar Pacific sắp bị xóa sổ. VNExpress.net.
  50. Web site: VnExpress . Covid causes more turbulence for Pacific Airlines - VnExpress International . 2022-07-06 . VnExpress International – Latest news, business, travel and analysis from Vietnam . en.
  51. Web site: 2024-06-25 . Pacific Airlines bay lại từ ngày 26-6 sau tái cơ cấu . 2024-06-25 . TUOI TRE ONLINE . vi.
  52. News: Binh, Mong . Jetstar Pacific seen as carrier of cheapest flights . 3 February 2012 . The Saigon Times . 23 July 2013 . https://web.archive.org/web/20140606222808/http://english.thesaigontimes.vn/Home/business/other/21582/ . 6 June 2014 . dead .
  53. Web site: 7 February 2024 . Pacific Airlines Fleet Details and History . 7 February 2024 . www.planespotters.net.
  54. Web site: Airbus orders and deliveries. Airbus. May 2019. 6 June 2019. https://web.archive.org/web/20190606234548/https://www.airbus.com/content/dam/corporate-topics/publications/o%26d/ODs-Airbus-Commercial-Aircraft-May-2019.xlsx. 3 February 2020. live.
  55. Web site: ONLINE . TUOI TRE . 2024-03-18 . Pacific Airlines không còn máy bay, chờ Vietnam Airlines hỗ trợ . 2024-03-26 . TUOI TRE ONLINE . vi.

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