Vietnam-based Jetstar Pacific has signed a memorandum of understanding (MOU) with European aeroplane maker Airbus to order 10 new A320s.

The low-cost carrier, which is based in Ho Chi Minh City, is a joint venture between Vietnam Airlines (70%) and Qantas (30%). The airline currently had 12 leased A320 in its fleet, flying to 28 domestic and regional destinations.

On Monday, the agreement was announced at the Farnborough International Air Show. It comes shortly after Vietnam and Qantas Airlines agreed to a $US139 million funding package for Jetstar Pacific to boost the airline’s fleet to 30 aircraft over the next four years.

“The new aircraft will allow us to expand our operation on our international network from Vietnam as part of the wider Jetstar Group,” Jetstar Pacific CEO Le Hong Ha said in a statement.

“With low operating costs and a comfortable cabin, the A320 enables us to offer our passengers a quality value-based product in a highly competitive market environment.”

Airbus said it was the first time Jetstar Pacific had directly purchased aircraft from the manufacturer.

“The news reinforces the position of the A320 as the single aisle aircraft of choice in both the low cost and full service sectors. We will look forward to working with Jetstar Pacific as it consolidates its position in the fast-growing Vietnamese market,” said John Leahy, Airbus Chief Operating Officer Customers.

– TiVi Tuan-san