Vietnam Airlines (VN, Hanoi Noi Bai International) is set to reduce its majority 70% shareholding in Jetstar Pacific (Ho Chi Minh City) Vietnam's Minister of Transport, Dinh La Thang, has said. According to the Tien Phong newspaper, Hanoi's decision to water down its shareholding in the budget carrier is aimed at improving competition in the country's domestic market.

Having received a USD35.7million capital injection from both Vietnam Airlines and Qantas (QF, Sydney Kingsford Smith) in July this year, Dinh said he was confident Jetstar Pacific would turn a profit this year thereby increasing the LCC's attractiveness to future investors. Vietnam Airlines acquired its stake in the carrier from the State Capital Investment Corp. in 2012 and had planned to position the airline as a feeder budget carrier.

Currently, of the three carriers that dominate Vietnam's market only one - VietJetAir (VJ, Hanoi Noi Bai International) - is privately owned.

With a fleet of eight A320-200s, Jetstar Pacific offers scheduled budget flights throughout Vietnam as well as to Bangkok Suvarnabhumi and Singapore Changi.