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Only Jetstar brand name used, says Pacific Airlines chief
Pacific Airlines, one of Vietnam’s two carriers, was renamed Jetstar Pacific Airlines last month.
This has raised questions whether Pacific Airlines is being taken over gradually by the Australian Qantas Group which uses the Jetstar brand in Australia and Asia.
Thanh Nien caught up with Jetstar Pacific CEO Luong Hoai Nam to find out the reason behind the name change.
Is it true that Pacific Airlines sold its domestic and international flight routes to foreign airlines?
Luong Hoai Nam: No, it’s not. Jetstar Pacific Airlines is a Vietnamese airline in accordance with the Law on Aviation.
According to the International Air Transport Association, Jetstar Pacific Airlines has the code BL [Pacific’s code] and all flights of the airline will have a code starting with BL.
The Law on Aviation and aviation agreements between Vietnam and other countries regulate that this code indicates the airline operating the flights.
Thus, Qantas or Jetstar cannot operate Jetstar Pacific Airlines’ flights.
Qantas Airways is a shareholder in Pacific Airlines.
Renaming Pacific Airlines as Jetstar Pacific Airlines is a part of a branding agreement between Pacific Airlines and Jetstar Airways, which is a subsidiary of Qantas.
Under the agreement, the Vietnamese airline can use Jetstar’s brand name by paying a licensing fee of 0.2 percent of its annual revenues.
Pacific and Jetstar also have a service agreement under which the Australian firmwill provide some commercial services.
Many people are afraid that Qantas will recoup its investment in Pacific Airlines through the licensing fee before making a takeover bid for the Vietnamese airline. Is that possible?
No, it’s not. Jetstar Airways is just a licensor, not a Jetstar Pacific Airlines shareholder.
Besides, the fee we pay the Australian airline is too low for it to get its investment back.
For example, it [0.2 percent] will be US$200,000 only if Jetstar Pacific Airlines’ annual revenue reaches $100 million.
No personnel changes were made after Pacific Airlines was renamed.
Members of the management were appointed by the major shareholders, including the State Capital Investment Corp., Qantas Airways and Saigontourist.
On the board of directors, we have four Vietnamese, including the chairman, and two Australians.
Everything remains unchanged except the airplane colors.
But people only see the brand name of Jetstar on advertising programs recently.
Doesn’t it violate the Civil Aviation Administration of Vietnam’s regulations, which don’t allow domestic airlines to advertise for foreign firms?
According to the brand agreement with Jetstar Airways, the brand name Jetstar will become Jetstar Pacific Airlines’ brand name.
Jetstar Pacific Airlines will operate flights under the brand name Jetstar, similar to Vietnamese brewers selling beer under the Heineken and Tiger brand names.
We add our trading name “Jetstar Pacific” or “Jetstar Pacific Airlines Joint Stock Aviation Company” to the advertisements as stipulated by the Civil Aviation Administration of Vietnam.
Thanhnien
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