Asian budget carriers join forces to set up Value Alliance

Value Alliance: Eight of Asia’s struggling budget carriers – including Singapore Airlines Ltd.’s Scoot subsidiary and Thailand’s  Nok Airlines  –  yesterday announced that they were joining forces to co-ordinate the sale of tickets, in-flight meals and possibly even baggage allowance. Other members of the alliance include Vanilla Air (a subsidiary of Japan’s ANA Holdings), Tiger Airways Australia (Virgin Australia Holdings), the Philippines’ Cebu Pacific Air, and South Korea’s Jeju Air. Air Asia, Jetstar and Lion Air, the region’s three biggest low-cost carriers, do not appear to be involved. 
About a dozen low-cost airlines have started operating in the Asia Pacific region over the course of the past decade, in the process ordering hundreds of aircraft from Airbus Group SE and Boeing. In total, budget carriers  have now captured a 54% market share in Southeast Asia compared to a global figure of 26%, according to the International Air Transport Association.

Source: Bloomberg