QANTAS has invested in Vietnamese carrier Jetstar Pacific for the long haul.

This is despite reported cumulative losses of $US50 million ($75 million) and suggestions the airline needs an injection of up to $US35 million.

News of the loss comes as the Vietnamese Government is looking at boosting the maximum stake Qantas is allowed to take in the airline from 30 to 49 per cent.

Reports from Hanoi indicate that Vietnamese state investment arm and Jetstar Pacific majority owner SCIC has sought permission to allow Qantas to raise its stake to 49 per cent.

SCIC, which has a 75.8 per cent stake in the carrier, said Jetstar Pacific needed $US30- $US35 million next year to help maintain its services.

Hanoi is also considering giving Jetstar Pacific more domestic and international routes, according to Dow Jones.

Qantas has an 18 per cent stake in Jetstar Pacific and provides management expertise to help develop the airline, under the Jetstar brand, into a major player in Vietnam, with a fleet of up to 30 Airbus A320s.

The business services agreement between the airlines allows the Australian carrier to take its stake to 30 per cent — the maximum allowable under current Vietnamese law — by the middle of 2010.

It is proposing to do this in two further tranches — one in the first half of the next calendar year and the second by mid-2010.

“The (Qantas) group is committed to two additional tranches beyond a number of arrangements and other aspects to be met,” Jetstar spokesman Simon Westaway said.

“We’re not yet at that stage, but as each week passes we’re getting closer to the point where we have to make a call on that.” (The Australian)