The MOT promises “favourable conditions” for Jetstar Pacific operations

The Ministry of Transport (MOT) is to meet Jetstar Pacific Airlines and the State Capital Investment Corporation (SCIC) to discuss problems with the air carrier’s branding.
The problem arose when the Civil Aviation Authority of Vietnam (CAAV) told Vietnam’s first budget airline it could not use its familiar Jetstar logo.
CAAV, a unit under MOT, believes the continued use of the logo ‘Jetstar’ (or ‘Jet’) and the orange star may cause people to confuse the Vietnamese airline with the Australian Jetstar.
CAAV fears that people will perceive Jetstar (the Australian airline) as having the right to provide services within Vietnam.
Meanwhile, in reply, Jetstar Pacific affirmed that it has the right to use the brand name under its international franchise.
Meanwhile Minister of Transport Ho Nghia Dung stressed that the ministry’s principle is to help ensure the most favourable conditions for operation.
“We need to discuss to settle problems, but we need to help enterprises to develop their business,” Dung said.
“We are doing everything we can to help develop the aviation market,” he stressed.
Dung described the one-year long argument between CAAV and Jetstar Pacific Airlines as a ‘normal disagreement’ arisen during the implementation of the Aviation Law.
The National Intellectual Property Office (NOIP) recognizes the logo and brand name of Jetstar Pacific Airlines, while the aviation law does not allow foreign airlines to develop domestic air routes.
“Many other countries in the world have similar provision and I think that Vietnam’s aviation laws fits international standards,” Dung said.
“I have to say that Jetstar Pacific has not met any difficulties in its operation because of the disagreement in the brand name so far,” Dung said, adding that the problem will be settled in the upcoming meeting.
Jetstar Pacific, which was previously named Pacific Airlines, once was on the verge of bankruptcy. Since April 26, 2007, the air carrier was put under the management of SCIC, a kind of ‘super-corporation’, specialising in making investment in businesses with state owned capital.
On April 26, 2007, SCIC decided to sell 30 percent of the airline’s stake, worth $50 million to Australian Qantas.
On May 23, 2008, Pacific Airlines changed its name and logo, from Pacific Airlines to Jetstar Pacific.
CAAV, though having opposed the use of the name and the logo, has not made any move against the air carrier. Meanwhile, SCIC, which is holding 70 percent of the airline, has not made any official statement.