Vietnamese govt takes issue with VietJet-AirAsia tie-up's name

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A start-up low-cost airline to be launched by Vietnam's VietJet Air and Malaysia's AirAsia will operate as VietJet Air instead of VietJet AirAsia, after Vietnamese authorities took issue with the use of AirAsia's name.

The Civil Aviation Administration of Vietnam (CAAV) disallowed the carrier from operating under the VietJet AirAsia banner, says the CAAV's director of air transport Vo Huy Cuong.

"We want to make sure that every airline has its own logo and name, and they should not follow other airlines already in the market," he adds.

AirAsia bought a 30% stake in VietJet in April, fulfilling its ambition of breaking into the Vietnamese market. VietJet had been trying to launch flights for years but has not managed to, citing poor demand.

VietJet Air will begin operations in the last quarter of 2010 after it receives its air operator's certificate, says Vo.

Vietnamese authorities had also previously expressed concern over the branding of Vietnamese carrier Jetstar Pacific as it uses the Jetstar branding from Australia. Qantas Airways owns Jetstar and is also a major shareholder in Jetstar Pacific.