Monday, May 16, 2016

Introducing the Value Alliance

Eight low-cost carriers (LCCs) from the Asia Pacific region today announced they have formed value alliance, the world's largest LCC alliance. Value alliance includes Cebu Pacific, Jeju Air, Nok, NokScoot, Scoot, Tigerair Australia, Tigerair Singapore, and Vanilla Air, representing six different countries in the Asia Pacific region. The alliance will reportedly involve code-sharing and combined ticketing and marketing efforts, but not extend to frequent flyer programs or involve coordination on routes or prices. Despite speculation about future mergers in this Bloomberg report, the alliance is intended to operate at a level of integration that would not necessitate regulatory review.  The alliance's primary purpose appears to be to help its members better compete with AirAsia and Jetstar, the two leading LCC franchises in the region.

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