Companies & Finance
 
Budget carrier told not to use shareholder’s logo
Thoi Bao Kinh Te Sai Gon

The Civil Aviation Administration of Vietnam has ordered low-cost Jetstar Pacific Airlines to remove all billboards and advertisements that carry the logo it shares with Australia’s Jetstar Airways by June 30 or risk losing its license when it expires this year.

Jetstar Pacific, which operates domestic flights in Vietnam, has adopted the logo with the word “Jet” and the orange star of Jetstar Airways, a subsidiary of Qantas Airways Ltd. Qantas owns a 27 percent stake in Jetstar Pacific.

The CAAV has been warning the airline not to use the logo since late 2008 since it “misleads” consumers into thinking the Australian airline operates the flights.

Vietnamese aviation regulations do not allow foreign airlines to fly on domestic routes.

But the airline did not stop the use of the logo.

The national aviation authority sent a notice to JPA last week saying the carrier must take down all billboards and advertisement using the logo by the end of next month, Thoi Bao Kinh Te Sai Gon Online (Saigon Economic Times Online) reported.

But the CAAV did not order the airline to remove the logo on its aircraft because the process would require time and money for repainting, newswire VnExpress reported.

Vo Huy Cuong, head of the CAAV’s Air Transport Department, said the authority has asked JPA to submit its plans for adopting a new logo.

Having a new logo is one of the criteria the carrier has to meet to have its license renewed when the current one expires on October 15.

Cuong said JPA had reported it needs more time to discuss the issue with Qantas and Jetstar Airways.

Jetstar Pacific used to be known as Pacific Airlines until May 2008 when Australia’s Qantas Airways bought an 18 percent stake in it.

The airline, in which Qantas has since increased its stake to 27 percent, operates some 40 domestic flights daily.

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