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More headwinds for Jetstar Pacific in Vietnam

Qantas’s troubled Vietnamese joint venture, Jetstar Pacific, faces a new challenge in the country, with Asia’s largest no-frills airline planning to set up operations in the communist country.

AirAsia has bought a 30-percent stake for an undisclosed sum in the low-cost airline VietJet Air, which will fly domestic and international routes and be renamed VietJet AirAsia.

The tie-up poses fresh challenges to Jetstar Pacific whose reputation has been battered over the last month by allegations of safety concerns and an investigation into USD31 million in hedging losses.