Vietnam Airlines has announced its intention to take over low cost carrier, Jetstar Pacific, subject to Government approval, The National Carrier, Vietnam Airlines is expanding internationally and the take over of Jetstar will increase its share of the Vietnamese domestic market to over 90%. Jetstar has been operating domestic scheduled services for 7 years and the competition with government owned Vietnam Airlines has forced changes in the way that domestic flights have been priced. The new company will see the exit of Australian carrier as a significant shareholder. Jetstar currently operates a mixed fleet of Airbus A320 and Boeing 737-400 aircraft, it is not yet clear what aircraft will be used post the tale-over.
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