Airlines reaction to ban on foreign logos muted

TN News

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The latest ban on the use of brands and logos of foreign airlines imposed by the Vietnam Civil Aviation Administration has been received with silence by new carriers affected by the ruling.

VietJet Air has said it has no reaction to the ban. Nguyen Duc Tam, the carrier's chief executive, said it was considering the administration's new rule for application in its first flight.

The private carrier was scheduled to begin operations next month but the executive said they would be delayed for more preparation.

He refused to elaborate on details of the delay but an unofficial source said the carrier needed time to change its promotion campaign combining its logo with its Malaysian partner AirAsia, which has acquired 30 percent stake in VietJet Air, the first private carrier licensed in Vietnam.

A source from Jetstar Pacific, who asked to remain anonymous, said the carrier was dissatisfied with the new ban but had to follow or its aviation operating license would be revoked.

Local carrier Pacific Airlines was renamed Jetstar Pacific Airlines in May 2008 under a branding agreement with Jetstar Airways, which is a subsidiary of Australia-based Qantas Airlines. The logo of Jeststar has been widely used in fights and services by the local carrier since.

The administration has several times warned the carrier against using the "Jetstar" logo or "Jet" and a star image, saying these trademarks could cause people to confuse the Vietnamese airline with Australian carrier Jetstar Airways.

The new ban is part of the administration's efforts to tighten control over foreign-invested airlines in Vietnam and prevent them from claiming fake losses (and avoiding taxes) as a result of expenses sustained in acquiring, marketing and promoting the foreign logo in the country.

Foreign airlines are not allowed to directly control business plans, revenues and profits of a local airline.

Local airlines cannot express disagreement for fear of losing their license

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