Low-cost carrier Jetstar Pacific will return to its original brand name, Pacific Airlines, and feature a new logo and livery “inspired” by its majority shareholder Vietnam Airlines’ brand colours and design.

The carrier said in a statement on its website that Vietnam Airlines (VNA) and Qantas, which owns a 30 per cent stake in Jetstar Pacific, have agreed to introduce changes to Jetstar Pacific which will “leverage the scale and brand strength of the majority shareholder, VNA, in its home market”.

According to Reuters, Qantas’ low-cost arm Jetstar said it planned to cease being a shareholder in the Jetstar Pacific joint venture with Vietnam Airlines in coming months, subject to approvals.

The proposed rebranding, which is still subject to government approval, is being implemented to “improve the profitability” of the low-cost carrier in response to the impact of Covid-19, said Jetstar Pacific.

“Low-cost carriers will play a certain role in supporting the return of travel as restrictions ease, and by streamlining functions, Pacific Airlines can remain competitive, inherit many of the efficiencies of Vietnam Airlines and continue to offer the low fares our customers expect,” said Vietnam Airlines executive vice president and Pacific Airlines chairman, Trinh Hong Quang.

The airline said it will also change its reservation system from Navitaire to Sabre in an effort to allow the carrier “to streamline its bookings, network and customer functions with VNA.”

Qantas Group Executive and Jetstar Group CEO, Gareth Evans, said in a statement that streamlining customer and booking functions will “enable further cost savings”.

“With a highly competitive domestic market in Vietnam and the disruption caused by the coronavirus, the time is right to take advantage of the strength and scale of Vietnam Airlines in its home market,” said Evans.

Jetstar Pacific adds in its statement on its website that  VNA and Qantas “continue to review the low-cost carrier’s structure and future shareholding arrangements”.