AsemconnectVietnam - Jetstar Pacific Airlines (JPA) accumulated losses of VND2,564 billion (US$122.1 million) during the 2008-2013 period, the latest financial report of Viet Nam Airlines Corporation, JPA's mother company, revealed.

Between 2008 and 2009, the carrier's losses were mainly due to fuel hedging and penalties for breaking its airplane leasing contracts signed in 2008.

Meanwhile, the post-tax losses in 2011 were double the previous year's figure, attributable to increasing operational and fuel costs, and the high maintenance costs of the more than 15-year-old fleet of Boeing 737s.

In 2012, the low-cost airline lost another VND404 billion ($19.2 million), with VND190 billion ($9 million) invested in a fleet of Airbus A320s to replace the old Boeing 737s.

The 2013 losses were reported to be VND274 billion ($13 million), despite a three per cent year-on-year increase in revenue and a surge of VND16.2 billion ($771,428) in customer sales.

At the end of 2013, the carrier was still in financial difficulties, with a capital of minus VND736 billion ($35 million).

Jetstar Pacific is Viet Nam's first low-cost carrier. Its precursor was Pacific Airlines, co-founded by Saigontourist and Vietnam Airlines. Then the Vietnam Airlines investment in Pacific Airlines was handed over to the State Capital Investment Corporation (SCIC).

The carrier was rebranded as Jetstar Pacific in 2007, when Australian airline Qantas purchased 27 per cent of the company, with the remainder owned by SCIC and Saigontourist.

In February 2012, Viet Nam Airlines took over Jetstar Pacific. By the end of 2013, its registered capital was more than VND1.86 trillion ($885.7 million), with Vietnam Airlines holding 67.83 per cent and Qantas 30 per cent.

Source: VNS