South Korea’s low-priced carrier (LCC) Jeju Air Co. became a founding member of Value Alliance, the world’s first LCC alliance launched on Monday.
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The Value Alliance in a statement on Monday said passengers will be able to book over 160 destinations via the websites of ANA’s Vanilla Air, SIA’s Scoot and Tiger Airways, Virgin Australia Holdings Ltd’s VAH.AX Tiger Airways Australia, Thai carriers Nok Airlines PCL NOK.BK and NokScoot, Cebu Air Inc’s CEB.PS Cebu Pacific, and South Korea’s Jeju Air Co Ltd 089590.KS .
Unlike typical interline technologies, ABB also allows travellers to book the full suite of ancillary choices they have come to appreciate from LCCs, such as seat and meal selection, variable baggage allowances and other inflight features – across all partner airline sectors in a single itinerary.
Nok Air is one of the eight joining an Asia-Pacific alliance.
Cebu Pacific chief executive Lance Gokongwei said the Value Alliance was a clear example of how low-priced carriers could accomplish more by working together than they do individually.
The announcement comes at a time of increased popularity for budget carriers in Southeast Asia, which industry players say is a key growth market for low-priced air travel.
But those who miss connecting flights because of an earlier delay can be assured that arrangements will be made for them to be put on the next available flight, at no extra cost.
“We are doing this for our own strategic reasons”, Wilson said, when asked if AirAsia and Jetstar from Australia’s Qantas Airways Ltd were invited. “The fact that you don’t see the others here speaks for itself”.
Jetstar, with airlines in Singapore, Australia, New Zealand, Japan and Vietnam, has a total fleet of 122 aircraft that fly to 17 countries and 75 destinations, a spokesman told The Straits Times.
Analysts say that the partnership is a reaction to cut-throat competition in a fast-growing travel market, which is putting pressure on margins of budget carriers and full service carriers alike.
A new airline alliance emerged overnight, as eight airline CEOs gathered in Singapore to announce the founding of the world’s largest alliance of low-priced airlines.
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Mr Wilson said the alliance, which has been in the works for 18 months, could be expanded in the future to include a frequent flyer program but there were no plans to do so at this stage.
