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Last Updated: Thursday, 26 April 2007, 12:13 GMT 13:13 UK
Qantas buys Vietnam airline stake
Qantas tailfins
Qantas wants its own budget airline to get a foothold in south east Asia.
Australia's national airline Qantas has said it is to buy a 30% stake in Vietnam's Pacific Airlines.

The price being paid for the slice of the firm - the largest allowed under Vietnam's foreign investment rules - has not been disclosed.

Qantas said it hoped that Pacific Airlines could be transformed into a lost-cost carrier.

It added that the deal would help its own budget airline, Jetstar, gain a foothold in the region.

Pacific Airlines operates both internationally and within Vietnam.

Qantas said in January that it was in talks with the firm, which is based in Ho Chi Minh City.

Qantas is currently waiting to see if enough of its own shareholders intend to back a separate 11.1bn Australian dollar ($9.2bn; 4.6bn) takeover bid for the airline.




SEE ALSO
Qantas suitor steps up bid battle
24 Apr 07 |  Business
US airline starts Vietnam flights
10 Dec 04 |  Asia-Pacific

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