Vietjet-AirAsia flies into turbulence

Authorities in Vietnam continue to make life tough for privately owned budget airlines seeking a slice of the country’s air traffic.

The private airline Vietjet Air will be unable to take off as planned because it needs to find another name for its joint venture with Air Asia.

The proposed name of Vietjet Air–AirAsia i,s not acceptable to authorities in Vietnam.

VietnamNet Bridge reports that Vietjet Air has contacted Civil Aviation Administration of Vietnam (CAAV), requesting that it allow them to delay operations until October 2010.

Vietjet Air previously planned to launch commercial flights under the name “Vietjet-AirAsia” after it sold 30 percent of the company to AirAsia.

The case is reminiscent of the Jetstar Pacific case, in which the airline was told not to use the orange star and Jet logo because it could be mistaken for an Australian airline.

CAAV told Vietjet Air to rethink its brand and not to use logos and brands that might create misunderstandings.

A representative of Vietjet Air said the airline has hired consultants to design a logo and brand, “and this will take time”.

The Vietjet Air agreement to sell 30 percent to a foreign airline also raised protests. Two weeks after Vietjet Air announced the sale, Vietnam Airlines, the national flag carrier, asked the government not to approve the deal.