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Allens Arthur Robinson has advised Qantas on its new partnership with Vietnam Airlines to strengthen Vietnam's first value-based carrier, Jetstar Pacific.
The new partnership will see Jetstar Pacific receive an initial injection of $25 million, including $7.5 million from Qantas for fleet renewal. Vietnam Airlines, which owns the remaining stake, will contribute A$17.5 million in capital.
Under the deal, which was signed on 21 February, Qantas will increase its ownership stake in Jetstar Pacific from 27 per cent to 30 per cent.
Jetstar Pacific, which operates 150 services a week to seven destinations within Vietnam and connects to Jetstar's international network via flights to Singapore, is majority owned by national full- service carrier Vietnam Airlines.
Lead Allens partner Bill Magennis said Allens has a long-standing relationship with the Qantas Group, and has worked with them on a number of transactions throughout South East Asia.
“This deal continues our work with Qantas and brings together the Jetstar business model with Vietnam Airlines' unique local knowledge and experience in one of the world's fastest growing aviation markets,” Magennis said.
According to the International Air Transport Association, Vietnam will be the second-fastest growing aviation market in the world, for domestic passengers, by 2014.
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