Australia's second-largest airline Virgin Blue has postponed its relaunch until early next year as it seeks to resolve a long-running dispute with largest shareholder, Richard Branson, over its plans to own the Virgin name. The new chief executive, John Borghetti was expected to relaunch the airline on its 10th anniversary in August.

The V emblem instead of the complete Virgin name is most likely to emerge as the one to combine four carriers Virgin Blue, the New Zealand-based Pacific Blue, Polynesia Blue and V Australia under one brand.

However, Virgin Blue and Sir Richard's British Virgin Group, which is a 26 per cent shareholder in the Australian offshoot, have yet to settle a dispute over legal right on the V and Virgin names. Virgin Enterprises last year blocked Virgin Blue's endeavour to trademark V Australia for its trans-Pacific airline.

A deal with Singapore Airlines that hinders Virgin Blue from using the Virgin name in this region frustrates executives because they are not able to maximize the Virgin brand on planes flying overseas, such as V Australia.
Both parties claim the dispute has intensified and is far from being settled within the year.
Virgin Blue refused to comment on the argument and the six-month delay of the relaunch.

Intellectual property lawyers say the quarrel is a sign of a deeper break between the two companies.

"That they have had to go through a very public opposition procedure ... shows there is a lack of trust of some seriousness there,'' said Trevor Choy, a close observer of the case.

''It's as if we are talking about two separate and rival corporate giants fighting it out over a name."

''It goes against what most licensing agreements say. [Godfrey] was trying to get security over the V name so that Branson couldn't pull it away from him. Branson is only doing what brand owners do - that is protect their assets."

Virgin Group earns up to £40 million ($68 million) each year from businesses placing the Virgin name on anything from cable TV to alcohol.