Jetstar Pacific to resubmit application for new int’l services

Budget airline Jetstar Pacific must submit a fresh application to the aviation regulator if wants access to new international destinations, said Deputy Minister of Transport Le Manh Hung.

Hung said Jetstar Pacific had asked for approval to fly new routes but had not yet submitted all the required documents to the Civil Aviation Administration of Vietnam (CAAV).

CAAV in October rejected an application by Jetstar Pacific to fly to 10 key Asian destinations, including China, Hong Kong, the Republic of Korea and Japan.

According to article 113 of the Civil Aviation Law issued in 2006, a Vietnamese airline has to file an application for traffic rights to CAAV for assessment and approval prior to any international take-off and landing.

The low-cost carrier, part-owned by Australian flag carrier Qantas, is currently authorized to fly to four overseas destinations – Bangkok (Thailand), Phnom Penh and Siem Reap (Cambodia) and Singapore.

The State Capital Investment Corp., the government’s investment arm, holds a 75.78 percent stake in Jetstar Pacific. Qantas is the next biggest shareholder with an 18 percent stake, Saigontourist Holding Company holds 6.18 percent and a Vietnamese investor holds 0.04 percent.

Last month, Jetstar Pacific said CAAV’s refusal to grant the traffic rights breached the business license granted by the Ministry of Transport in September 2008, which allowed the carrier to fly domestic and international routes.

The State Capital Investment Corp. asked the ministry to overturn CAAV’s decision.

On Friday, Hung met with the General Director of the State Capital Investment Corp. Tran Van Ta to instruct Jetstar Pacific to prepare a new application for international traffic rights’ reconsideration.

Jetstar Pacific must continue to work closely with relevant state agencies to register its logo in accordance with Vietnam law and international convention, he said.

The deputy minister has also requested the State Capital Investment Corp. to restructure Jetstar Pacific’s management board.

Reported by Vinh Bao