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Jetstar Pacific rebuked for advertising foreign brand   2008-06-04 - VNE

VietNamNet Bridge – The Vietnam Civil Aviation Administration (VCAA) asked Vietnam’s first low-cost air carrier Jetstar Pacific Airlines to stop advertising and marketing its products under the brand and symbol of a foreign airline, Australia’s Jetstar Airways.


According to VCAA’s Vice Head Lai Xuan Thanh, Jetstar Pacific “intentionally” advertised the symbol of Jetstar, an airline of Australia, without permission from the VCAA. Jetstar Pacific’s activities could cause misunderstandings among customers that Jetstar Pacific Airlines is a foreign airline which offers local flights in Vietnam while the Vietnamese Aviation Law doesn’t allow any foreign air carrier to offer local flights in Vietnam.


VCCA instructed the firm to add Jetstar Pacific or Jetstar Pacific Airlines to all of its advertisements, to the signboards of all ticket offices and its stalls at airports, instead of Jetstar only.


Pacific Airlines changed its name to Jetstar Pacific Airlines on May 23. After the change, its advertising, marketing, aircraft decoration, website and staff costumes, etc. became similar to those of Jetstar.


As some worry that the 17-year Pacific Airlines brand may fail, CEO of Jetstar Pacific Airlines Luong Hoai Nam confirmed that Pacific Airlines was not a strong brand and the firm nearly went bankrupt. It is a good solution to buy the right to use the Jetstar brand.


“Pacific Airlines brand will not go under but in some cases we will have to use this brand,” Nam said.


According to the contract with Jetstar, if Jetstar Pacific Airlines doesn’t meet Jetstar’s security and service standards, Pacific Airlines will lose the right to use the Jetstar name.


According to Thanh, Vietnam encourages airlines to use the same brands, connect their sales networks and international aviation standards through signing contracts or establishing alliances and joint ventures with foreign partners.


Since Pacific Airlines changed its name, the first still maintains the structure of its management Bboard with four Vietnamese and two Australian members.


The Executive Board has six key positions, including four Vietnamese officials (General Director, Vice General Director in charge of technology, Vice General Director in charge of trade and the Chief Accountant) and two Australian officials (Vice Executive General Director and Vice General Director in charge of Finance).

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