Vietnamese carrier Jetstar Pacific has undergone a management change.
Jetstar Pacific's CEO Luong Hoai Nam has resigned and left the carrier, says a Jetstar spokesman in Melbourne, adding that the interim CEO is Le Song Lai. Lai was already the carrier's chairman and is also a senior executive at Vietnam's State Capital Investment Corporation (SCIC) which owns around 70% of Jetstar Pacific. The other major owner is Qantas Airways which owns 27%.
In May 2008, Qantas re-branded the Vietnamese carrier as Jetstar Pacific, in keeping with the branding and positioning of Qantas' low-cost carrier Jetstar.
"SCIC is Jetstar Pacific's largest shareholder and under the agreement [with Qantas] SCIC is entitled to nominate candidates for the CEO and chairman positions," says the Jetstar spokesman, adding that Nam and Lai were both SCIC nominees.
The spokesman was unable to say how long Lai will remain as interim-CEO but adds it could be several months before a permanent CEO is appointed.
The management change comes at a time when SCIC is trying to reduce its exposure to the airline.
In December, the SCIC told ATI it plans to sell shares in the airline to new investors, reducing its own stake.
Jetstar Pacific has been reporting annual losses but Jetstar's spokesman in Australia says the Vietnam's carrier has posted some monthly profits this calender year.
He also says the airline has been posting double-digit passenger growth that is higher than the market growth of Vietnam's commercial aviation industry.
Its market share has risen to 23% from the 14% share it had when Qantas bought into the business in mid-2007, he adds.
Today the airline has a fleet of five Boeing 737-400s and one Airbus A320. It plans to replace the 737s with A320s eventually but the Jetstar spokesman was unable to say when the next A320 will be added.
Jetstar Pacific has also shelved plans to launch international services.
"It has focused its plan on the domestic market," says the spokesman.
Source: Air Transport Intelligence news
