Last Monday, a new airline alliance was formed, appropriately titled Value Alliance. It’s a collective of low cost carriers in the Asia Pacific region including: Singapore Airlines’ Scoot, Vanilla Air, a unit of Japan’s ANA Holdings Inc., Tiger Airways Australia, controlled by Virgin Australia Holdings Ltd., Cebu Pacific Air in the Philippines, Nok Airlines in Thailand, and South Korea’s Jeju Air among others. They note that they intend to sell tickets and potentially even baggage allowances across the carriers in one transaction. The group says that the alliance will be open to any carrier that wishes to join. As Bloomberg notes, noticeably missing low-cost carriers in the area include AirAsia, Jetstar, and Lion Air.
While the alliance may have some benefits, analysts note that it will be hard for low-cost carriers to coordinate schedules.
“Even if the incremental gain is relatively small initially, it’s still a good ploy to just get together and try to improve your distribution and brand awareness, and get some incremental traffic.”
“It will be tough for the new union to generate extra revenue for its members because low-cost carriers — which often shuttle the same plane between two cities several times a day — find it hard to match arrival and departure times.”
According to Value Alliance, its members offer flights to more than 160 destinations with a fleet of 176 aircraft.
Value Alliance is the world’s first pan-regional Low Cost Carrier (LCC) alliance comprising eight Asia Pacific market champions. Its members – Cebu Pacific, Jeju Air, Nok, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air – provide unparalleled access to more than 160 destinations from 17 hubs across Australia, North Asia and South East Asia, covering a third of the world. In 2015, the airlines collectively served more than 47 million travellers with a combined fleet of 176 aircraft.
Powered by ABB’s revolutionary web technology, travellers will be able to book flights offered by any Value Alliance partner at the most competitive fare when they visit any member website. While doing so, they can also select from the full range of service options in a single transaction.
With a reach that spans a third of the world, Value Alliance will offer guests multi-destination itineraries at great value and the convenience of booking connecting flight options at one go. The Alliance also provides a framework for further cooperation amongst member airlines, which includes shared services, in order to enhance the overall guest experience.