Gov’t seeks transparency in low-cost airline JPA

Jetstar Pacific Airlines's planes bring Australian carrier's symbol, Jetstar Airlines, on it. (Photo: SGGP)

Deputy Prime Minister Hoang Trung Hai on Oct. 5 told the Ministry of Transport to urgently investigate Jetstar Pacific Airlines (JPA) after Sai Gon Giai Phong newspaper's allegations that Australia's Jetstar is exploiting JPA at the cost of the domestic market.

SGGP had earlier reported that JPA, to which Australian carrier Jetstar paid some to use its brand in Vietnam, has suffered losses for a long time. The losses were reported at almost VND2 trillion.

Jetstar Airlines holds 30 percent of JPA shares but only the latter has suffered the loss while the former has gained from having its brand advertised nationwide.

SGGP received much feedback from economic and aviation experts, members of the public and JPA employees, many of whom suggested that the Government thoroughly deal with this case to prevent a bad precedent which affects national benefits, as the Vietnam Civil Aviation Law does not allow foreign airlines to exploit domestic flights.

The deputy PM has also ordered the ministry to present solutions and report to Prime Minister Nguyen Tan Dung.

By Thu Tuyet – Translated by Moc Lan

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