Malaysian low-cost airline AirAsia is considering divesting its stake in local priviate carrier VietJet Air, news website VnExpress reported Thursday, citing an unnamed source.

 

The report said the companies have not reached an agreement on the brandname. The source from VietJet Air said it was a problem they had been trying to solve over the past year.

 

VietJet Air, the first private airline to be licensed in Vietnam, in February 2010 sold a 30 percent stake to AirAsia and planned to name its new joint venture VietJet AirAsia.

 

A few weeks later the Civil Aviation Administration of Vietnam banned local carriers from using brands and logos of foreign airlines for their services. Lai Xuan Thanh, deputy head of the administration, specifically asked VietJet Air to reconsider its plan to use the brand of its foreign partner.

 

“AirAsia is still our shareholder now. If our negotiation fails and the partner decides to withdraw their investment, we will still try to overcome all difficulties so that we can start flying this year,” the source said.

 

The local carrier, with a registered capital of VND600 billion, has delayed its maiden flight several times. VnExpress said its transport license will expire in May if it cannot launch its service by then.