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Qantas to exit Vietnamese joint venture as COVID crisis takes toll

Qantas has confirmed it will exit its minority stake in the Vietnamese airline Jetstar Pacific and is expected to hand full control of the budget carrier over to co-owner Vietnam Airlines.

Gareth Evans, chief executive of Qantas’ budget division Jetstar, said on Monday the group would offload its 30 per cent stake in Jetstar Pacific “in the coming months”, pending regulatory approvals, so it can “focus on our other airlines”.

Jetstar Pacific was established in 2007 but has been loss making for much of its history.

Jetstar Pacific was established in 2007 but has been loss making for much of its history. Credit:James Alcock

“We’ve been in discussions with Vietnam Airlines for some time about the challenges facing Jetstar Pacific, which have obviously intensified through the COVID crisis,” Mr Evans said in a statement.

The pandemic has devastated airlines around the world, and forced Qantas to stand down the 27,000 of its 30,000 employees and consider wholesale changes to its business model.

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