Eight Asian airlines form Low Cost Carrier Alliance

Eight Asia Pacific low cost airlines today joined forces to form the world’s largest low cost carrier alliance: the Value Alliance.

Cebu Pacific (including wholly owned subsidiary Cebgo), Jeju Air, Nok Air, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air will provide greater value, connectivity and choice for travel throughout Southeast Asia, North Asia and Australia, as they bring their extensive networks together.

The Value Alliance airlines, who together cover a third of the earth and serve more than 160 destinations with a collective fleet of 176 aircraft across the Asia Pacific region, will strengthen distribution in their non-home markets, expand their saleable networks via the provision of interline itineraries, retain their ancillary revenue opportunities and offer their customers a better, one-stop-shop experience.

Tigerair Australia CEO Rob Sharp said:

“This is a major milestone for Tigerair Australia, expanding our existing network from 21 routes and 12 destinations to span one third of the world to over 160 destinations throughout the Asia Pacific region”.

“By working together we can enable more people to travel for less to more places than ever before in a single transaction from the convenience of each airline’s website. It’s a great fit for Tigerair Australia which is all about delivering value, choice and innovation.”

Lance Gokongwei, President and CEO of Cebu Pacific remarked:

“All of our airline partners are champions in their local markets and well regarded for their value and service regionally and nationally. The Value Alliance is a clear example of how LCCs can accomplish more by working together than we could do individually.”

Scoot CEO Campbell Wilson said:

“We are extremely excited by the opportunities this partnership presents to our guests. The Value Alliance partners are leaders in their respective territories, having forged loyal followings by providing value, service and commitment to their home markets.  By working together we can offer our guests a wider choice of destinations and flights, at the most competitive airfares, all in one go”.

Patee Sarasin, CEO of Nok Air added:

“The opportunity enabled by ABB and the Value Alliance to offer ancillary products through interline channels is a significant benefit over other partnerships, given LCCs typically earn 10-25 percent of their revenues from such items.”

Scoot, Nok Air and NokScoot are already offering each other’s flights and fares powered by the new ABB technology and other alliance members will follow in the coming months.

“The technology enables us to interface with other airlines within the Value Alliance, including those using different passenger service systems (PSS), to provide a solution to a guest’s travel query – even on routes Vanilla Air may not itself serve to connect Japan to the rest of Asia Pacific,” noted Katsuya Goto, President of Vanilla Air.

Membership to the Value Alliance is by invitation only.

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