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Singapore Airlines’ Low-Cost Carriers, Others Start Alliance

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Budget airlines formed the Asia Pacific region’s first alliance comprising eight low-fare carriers from Japan to Australia to boost usage of their networks.


Value Alliance includes Singapore Airlines Ltd.’s Scoot and Tiger Airways, ANA Holdings Inc.’s Vanilla Air, Tiger Airways Australia, Nok Airlines Pcl, NokScoot, Cebu Pacific Air and Jeju Air, Vanilla Air said in an e-mailed statement Monday.


The partnership follows a Chinese alliance by low-cost airlines linked to HNA Group earlier this year. Value Alliance is the world’s largest alliance of budget carriers and offers a website allowing passengers to book tickets and extra services like additional baggage and meals across airlines in the group, according to the statement. The members offer flights to more than 160 destinations with 174 aircraft, it said.


“This is a positive move for the LCCs,” said Dan Lu, an analyst in Tokyo at JPMorgan Securities Japan Co. “The one disadvantage for LCCs is their lack of network brand. It’s quite difficult for them to join the full-service alliances so they have to form their own alliances. Through this joint alliance they can expand their network.”


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Wow! This is a formidable alliance, much bigger than Hainan Airlines Group's U Alliance. Mostly are Singapore Airlines-owned subsidiaries except for 5J, JW and 7C. Now we know why Singapore Airlines wanted to purchase a stake in Jeju Air in Aug 2015 but didn't proceed in the end. Singapore Airlines mainline business has not grown much, rather her subsidiaries are driving most profit nowadays, no surprise here. They need something "big" to fight AirAsia Group, this may be their answer.

 

I wonder how it will work though as different LCC charges differently for luggage, have their "perks" and revenue management.

 

AirAsia may need to be careful with this alliance.....

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AirAsia may need to be careful with this alliance.....

The alliance has potential - provided that the members cooperate actively. Current airline alliances seem to be very loose groupings as members can still tie up with other airlines that are not within their alliance.

 

The strategic importance of Airasia Japan is now clear - they will have to fight off the Korean and Japanese LCCs. Remember the so-called alliance that TF and AJ struck up some years ago? Maybe they should re-think this seriously.

 

A genuine Airasia - Jetstar alliance will be formidable. It can even include Indigo and Lion - now, that would be highly improbable but still possible, if all concerned are determined to fight off Value Alliance partners.

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The alliance has potential - provided that the members cooperate actively. Current airline alliances seem to be very loose groupings as members can still tie up with other airlines that are not within their alliance.

 

The strategic importance of Airasia Japan is now clear - they will have to fight off the Korean and Japanese LCCs. Remember the so-called alliance that TF and AJ struck up some years ago? Maybe they should re-think this seriously.

 

A genuine Airasia - Jetstar alliance will be formidable. It can even include Indigo and Lion - now, that would be highly improbable but still possible, if all concerned are determined to fight off Value Alliance partners.

I am kind of worried for AirAsia Japan. One airline to fight off the many Korean and Japanese LCCs, it will be suicidal unless they co-operate with Jetstar Japan.

 

AirAsia, IndiGo and Jetstar Group are all in an alliance called InterGlobe Ltd. They co-operate in terms of spare parts procurement and training, that's all. They compete fiercely on other aspect, not much co-operation at all.

 

They need to extend the co-operation and linkages, bring on-board Vietjet, Lion Air and Spring Airlines, Asia will be under their toe. U Alliance and Value Alliance will be nothing to them.

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Unless there is a change of lcc business model not sure how lcc alliance could have impact on pax experience.

 

SKL access at SIN, redeem miles on parent SQ F and J, a personal umbrella if it's raining, 10-second headstart to board to the plane and free peanuts on board.

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Really ?

So Tigerair Singapore is dropping by Tawau or Sandakan enroute to somewhere in the Philippines ? :)

 

 

Maybe that is actually BKI? Just like how Saudi Arabia has not decided to become an island and move closer to India...

Hahahas! Both of you are funny. Don't read too much into the map, as always airline will put a note "Actual flight path may differ from shown." :)

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Really ?

So Tigerair Singapore is dropping by Tawau or Sandakan enroute to somewhere in the Philippines ? :)

 

Neither Tawau or Sandakan, I reckon. It is Lahad Datu. Dropping off the Sulu separatists and immigrants to Sabah :)

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Just got to know this, Vanilla Air has withrew from Value Alliance since March 2019.

 

https://www.vanilla-air.com/en/news/3676

 

Withdrawal from Value Alliance

 

2019.03.13

 

Thank you for choosing Vanilla Air.
We have decided to withdraw from Value Alliance on March 30, 2019.
Therefore, we will cease to serve our dedicated system for Value Alliance Booking after the withdrawal. Please rest assured that your existing reservations of Value Alliance Booking are still valid and you can confirm own itineraries by the end of your travel.
Thank you for your understanding and we look forward to serving you again.
Vanilla Air Inc.
Impending merger with Peach? Surprise to see Peach is not part of Value Alliance. They will add some coverage for Value Alliance in Japan market, also China's Spring Airlines and India's GoAir.

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Peach has some investors from Hong Kong - I think they are more focused on the North East Asian market.

 

South East Asian market is dominated by Airasia, Lion Air, Jetstar and VietJet. They are not going to tackle this until they are stronger.

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