The Qantas Group has increased its shareholding in Vietnam's second largest carrier, Pacific Airlines, to 18 per cent.

Qantas chief executive officer Geoff Dixon said the group would complete its investment in two years to 30 per cent.

Qantas unit Jetstar Airways would act for the group through its CEO Alan Joyce and its chief financial officer David Hall on the Pacific Airlines board. Qantas and Jetstar executives would also play key roles at the airline.

Mr. Dixon said that the Qantas Group would continue to work with Pacific Airlines and investment partner SCIC to implement the new business plan, which currently operates a fleet of single-class B737-400 aircraft on Vietnam domestic routes.

"The initial strategy is to reposition Pacific Airlines as Vietnam's only low-cost carrier to enable its future expansion both within Vietnam and in the future internationally, through short haul intra-Asia services," Mr. Dixon said.

Mr. Joyce said the investment would support his Jetstar's pan-Asian growth strategy and enable Qantas to extend its reach.

"By achieving a standardized low-cost operation in line with Jetstar, future plans include establishing a franchise opportunity," Mr. Joyce said.