Pacific Airlines gets new CEO

1 min readUpdated Aug 18, 2020Aug 19, 202011:03 PM

In this article (5)

The board of Vietnam Airlines has named a new CEO for subsidiary Pacific Airlines, formerly Jetstar Pacific.

Dinh Van Tuan, 50, has taken from Nguyen Thuong Hoang Hai, who quit for personal reasons. Tuan was earlier the director of Vietnam Airlines’ operations center, and has served in various capacities at the carrier since 1996.

Jetstar Pacific became Pacific Airlines on August 1 and got a new logo as Vietnam Airlines, which owns a 68.86 percent stake in it, seeks to buy another 30 percent stake from Australia’s Qantas.

The first joint-stock airline in Vietnam was set up in 1991. In its 29 years, it has only reported profits for four years. It has major expansion plans, with the current fleet of 18 aircraft set to be increased to 50 by 2025.

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What this means

The appointment of Dinh Van Tuan, a long-serving Vietnam Airlines veteran, signals a clear intent from the majority owner to impose operational discipline and stem losses at Pacific Airlines. Given the subsidiary’s dismal financial track record and Vietnam Airlines’ ambition to acquire full ownership, this move is a necessary step towards a more unified and efficient structure. It pressures rivals by potentially creating a more formidable, albeit still challenged, budget competitor, especially if the ambitious fleet expansion materialises. The primary risk lies in Tuan's ability to overhaul a deeply entrenched loss-making operation without the autonomy that a new, external leader might command. Watch for any public statements regarding the Qantas stake acquisition timeframe.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

What is the new CEO's background before joining Pacific Airlines?

Dinh Van Tuan was previously the director of Vietnam Airlines' operations center. He has worked in various roles at Vietnam Airlines since 1996, indicating long-standing experience within the parent company.

Why did the previous CEO of Pacific Airlines leave his position?

Nguyen Thuong Hoang Hai resigned as CEO of Pacific Airlines due to personal reasons. The article does not provide further details regarding the specific nature of these reasons.

What are Pacific Airlines' expansion plans for its fleet?

Pacific Airlines plans a significant expansion of its fleet, aiming to increase it from the current 18 aircraft to 50 aircraft by the year 2025. This indicates ambitious growth targets for the airline.

What is Vietnam Airlines' current stake in Pacific Airlines, and what are its future intentions?

Vietnam Airlines currently owns a 68.86 percent stake in Pacific Airlines. It intends to acquire an additional 30 percent stake from Australia's Qantas, which would further consolidate its ownership.

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