January 8, 2010
Vietnamese authorities have arrested the former head of budget airline Jetstar Pacific and prevented two of its Australian employees from leaving the country after the carrier reported losses on fuel contracts, state media says.
Luong Hoai Nam, 47, former general director of Jetstar Pacific Airlines - a partnership between the Vietnam government's investment arm SCIC and Australia's Qantas Airways - was taken into police custody in Hanoi on Thursday, the Tuoi Tre (Youth) newspaper said.
Online newspaper Vietnamnet reported that two Australian executives of Jetstar Pacific, identified as Daniela Masilli and Tristan Freeman, were not allowed to leave the country.
A spokesman at Australia's Department of Foreign Affairs and Trade confirmed that the two Australians have been prevented from leaving Vietnam and said the Australian embassy in Hanoi is seeking further details.
The Tuoi Tre newspaper quoted a report by state investigators alleging that Nam and the two Australian deputy general directors flouted a board of directors resolution on buying aviation fuel futures, leading to losses of more than $US31 million ($A33.81 million).
The resolution only allowed the general director and his two deputies to buy fuel futures up to the end of 2008, but they extended the purchase until May last year, the report said.
Police also searched Nam's homes and offices in Hanoi and the southern commercial hub of Ho Chi Minh City, the newspaper said.
Officials at Jetstar Pacific and police were not immediately available for comment.
State media has quoted Nam as saying that most airlines in the world suffered losses from buying fuel futures because of volatile oil prices over the past two years which peaked at $US143 per barrel and then slumped to as low as $US39 per barrel.
In 2007, Australia's Qantas bought 18 per cent of Pacific Airlines and turned it into a low-cost airline, operating as Jetstar Pacific. Qantas' stake has since increased to 27 per cent.
Nam was the general director of Pacific Airlines since 2004 and resigned late last year citing personal reasons.
Source: http://au.news.yahoo.com/a/-/latest/6658341/vietnam-arrests-ex-jetstar-pacific-boss/
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January 9, 2010
Two senior Qantas employees prevented from leaving Vietnam after financial losses on fuel markets have done nothing wrong, Qantas chief executive Alan Joyce says.
Jetstar Pacific chief operating officer Daniela Marsilli and chief financial officer Tristan Freeman were refused permission to leave Vietnam on December 19 and are being investigated over losses linked to a practice known as fuel hedging.
They have not had their passports confiscated, are free to move around Vietnam and work in their normal offices, Mr Joyce told reporters.
But he confirmed Qantas, which part owns Jetstar Pacific, is now helping authorities in Vietnam with a financial investigation.
Jetstar recorded losses of $31 million through fuel hedging in 2008-2009.
Mr Joyce said airlines across the industry suffered combined losses worth hundreds of millions through the same practice.
The employees did not act outside the Qantas board's normal protocols and have done nothing wrong, Mr Joyce insisted.
"The losses that were incurred were a part of global business risk," Mr Joyce added.
"We are, obviously, concerned. We are concerned about the wellbeing of our people. That's the top priority for us. We are working very closely with the authorities," Mr Joyce said.
"We don't have an indication of how long this will take. We, obviously, want it resolved as fast as possible."
Ms Marsilli and Mr Freeman are being offered support by the Australian embassy staff, acting Prime Minister Julia Gillard says.
"We are providing assistance to these two Australians through our Embassy there," she told the Nine Network on Saturday.
"We are providing consular assistance, doing everything we can trying to get to the bottom of the reason for their detention and resolve the issue working with them. They are being fully supported out of our embassy."
According to international media reports, the former boss of Jetstar Pacific, Luong Hoai Nam, was arrested on Thursday as part of the investigation into the 2008-09 losses.
Vietnam's Tuoi Tre newspaper quoted a report by state investigators that the three Jetstar employees flouted a board of directors' resolution on buying aviation fuel futures, leading to losses of more than $US31 million ($A33.81 million).
In 2007, Australia's Qantas bought 18 per cent of Pacific Airlines and turned it into a low-cost airline operating as Jetstar Pacific. Qantas's stake has since increased to 27 per cent.
http://au.news.yahoo.com/a/-/latest/6659681/jetstar-staff-have-done-nothing-wrong/
ooOoo
January 9, 2010
There is still no indication as to when Vietnamese authorities will allow two Qantas employees to return home to Australia.
Police in Vietnam are investigating two executives from the airline Jetstar Pacific, which is jointly owned by Qantas and the Vietnamese government, over a $34 million company loss in 2008 and 2009 linked to the future pricing of petrol reserves.
Daniela Marsili and Tristan Freeman were stopped from leaving the country before Christmas, but are still free to work and travel within the country.
Mr Freeman is from Sydney and is Jetstar Pacific's chief financial officer. He is married with two daughters, aged two and four.
Ms Marsilli is from Adelaide and is the airline's chief operating officer. She is married and has a three-year-old daughter.
There have been no arrests and no charges laid on the pair.
Qantas CEO Alan Joyce says there is some confusion over what will happen to them.
"Both Tristan and Daniela were leaving to come back for Christmas with their families and they were told by the authorities that they would not be allowed to leave and would have to assist the authorities with their investigation," he said.
"It is unusual but we understand with the Vietnamese at the moment that they are doing an investigation."
Mr Joyce says they were engaging in legitimate business activity.
"There's no criminal or illegal irregularities in what the staff has been involved in ... they've done what every airline executive has done, what every ariline executive around the world did to cope with the high fuel price," he said.
"We are absolutely convinced that the people acted under the delegation of the board. They did the right thing."
He says fuel hedging, which led to heavy financial losses, was standard business practice.
Acting Prime Minister Julia Gillard says the Federal Government is doing all it can to help.
"We are providing assistance to these two Australians through our embassy there," she said.
"We are providing consular assistance, doing everything we can trying to get to the bottom of the reason for their detention and resolve the issue working with them. They are being fully supported out of our embassy."
The Vietnamese Government owns 73 per cent of Jetstar Pacific and Qantas has the remaining share.
http://au.news.yahoo.com/a/-/latest/6660140/no-sign-of-return-for-jetstar-pacific-execs/
Luong Hoai Nam, 47, former general director of Jetstar Pacific Airlines - a partnership between the Vietnam government's investment arm SCIC and Australia's Qantas Airways - was taken into police custody in Hanoi on Thursday, the Tuoi Tre (Youth) newspaper said.
Online newspaper Vietnamnet reported that two Australian executives of Jetstar Pacific, identified as Daniela Masilli and Tristan Freeman, were not allowed to leave the country.
A spokesman at Australia's Department of Foreign Affairs and Trade confirmed that the two Australians have been prevented from leaving Vietnam and said the Australian embassy in Hanoi is seeking further details.
The Tuoi Tre newspaper quoted a report by state investigators alleging that Nam and the two Australian deputy general directors flouted a board of directors resolution on buying aviation fuel futures, leading to losses of more than $US31 million ($A33.81 million).
The resolution only allowed the general director and his two deputies to buy fuel futures up to the end of 2008, but they extended the purchase until May last year, the report said.
Police also searched Nam's homes and offices in Hanoi and the southern commercial hub of Ho Chi Minh City, the newspaper said.
Officials at Jetstar Pacific and police were not immediately available for comment.
State media has quoted Nam as saying that most airlines in the world suffered losses from buying fuel futures because of volatile oil prices over the past two years which peaked at $US143 per barrel and then slumped to as low as $US39 per barrel.
In 2007, Australia's Qantas bought 18 per cent of Pacific Airlines and turned it into a low-cost airline, operating as Jetstar Pacific. Qantas' stake has since increased to 27 per cent.
Nam was the general director of Pacific Airlines since 2004 and resigned late last year citing personal reasons.
Source: http://au.news.yahoo.com/a/-/latest/6658341/vietnam-arrests-ex-jetstar-pacific-boss/
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- Jetstar staff 'have done nothing wrong'
January 9, 2010
 Qantas CEO Alan Joyce |
Jetstar Pacific chief operating officer Daniela Marsilli and chief financial officer Tristan Freeman were refused permission to leave Vietnam on December 19 and are being investigated over losses linked to a practice known as fuel hedging.
They have not had their passports confiscated, are free to move around Vietnam and work in their normal offices, Mr Joyce told reporters.
But he confirmed Qantas, which part owns Jetstar Pacific, is now helping authorities in Vietnam with a financial investigation.
Jetstar recorded losses of $31 million through fuel hedging in 2008-2009.
Mr Joyce said airlines across the industry suffered combined losses worth hundreds of millions through the same practice.
The employees did not act outside the Qantas board's normal protocols and have done nothing wrong, Mr Joyce insisted.
"The losses that were incurred were a part of global business risk," Mr Joyce added.
"We are, obviously, concerned. We are concerned about the wellbeing of our people. That's the top priority for us. We are working very closely with the authorities," Mr Joyce said.
"We don't have an indication of how long this will take. We, obviously, want it resolved as fast as possible."
Ms Marsilli and Mr Freeman are being offered support by the Australian embassy staff, acting Prime Minister Julia Gillard says.
"We are providing assistance to these two Australians through our Embassy there," she told the Nine Network on Saturday.
"We are providing consular assistance, doing everything we can trying to get to the bottom of the reason for their detention and resolve the issue working with them. They are being fully supported out of our embassy."
According to international media reports, the former boss of Jetstar Pacific, Luong Hoai Nam, was arrested on Thursday as part of the investigation into the 2008-09 losses.
Vietnam's Tuoi Tre newspaper quoted a report by state investigators that the three Jetstar employees flouted a board of directors' resolution on buying aviation fuel futures, leading to losses of more than $US31 million ($A33.81 million).
In 2007, Australia's Qantas bought 18 per cent of Pacific Airlines and turned it into a low-cost airline operating as Jetstar Pacific. Qantas's stake has since increased to 27 per cent.
http://au.news.yahoo.com/a/-/latest/6659681/jetstar-staff-have-done-nothing-wrong/
- No sign of return for Jetstar Pacific execs
January 9, 2010
There is still no indication as to when Vietnamese authorities will allow two Qantas employees to return home to Australia.
 Tristan Freeman |
Daniela Marsili and Tristan Freeman were stopped from leaving the country before Christmas, but are still free to work and travel within the country.
Mr Freeman is from Sydney and is Jetstar Pacific's chief financial officer. He is married with two daughters, aged two and four.
Ms Marsilli is from Adelaide and is the airline's chief operating officer. She is married and has a three-year-old daughter.
There have been no arrests and no charges laid on the pair.
Qantas CEO Alan Joyce says there is some confusion over what will happen to them.
"Both Tristan and Daniela were leaving to come back for Christmas with their families and they were told by the authorities that they would not be allowed to leave and would have to assist the authorities with their investigation," he said.
"It is unusual but we understand with the Vietnamese at the moment that they are doing an investigation."
Mr Joyce says they were engaging in legitimate business activity.
"There's no criminal or illegal irregularities in what the staff has been involved in ... they've done what every airline executive has done, what every ariline executive around the world did to cope with the high fuel price," he said.
"We are absolutely convinced that the people acted under the delegation of the board. They did the right thing."
He says fuel hedging, which led to heavy financial losses, was standard business practice.
Acting Prime Minister Julia Gillard says the Federal Government is doing all it can to help.
"We are providing assistance to these two Australians through our embassy there," she said.
"We are providing consular assistance, doing everything we can trying to get to the bottom of the reason for their detention and resolve the issue working with them. They are being fully supported out of our embassy."
The Vietnamese Government owns 73 per cent of Jetstar Pacific and Qantas has the remaining share.
http://au.news.yahoo.com/a/-/latest/6660140/no-sign-of-return-for-jetstar-pacific-execs/
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