Mushrif A 3 Report post Posted July 19, 2005 As expected Valuair cannot survive on its own.... AK is lucky as it has a monopoly on the Msian domestic LCC scene - its cashcow, insulating it from cut-throat competition. "Singapore's Valuair and Jetstar agree to merge 19.07.05 2.40pm Two of three Singapore-based budget airlines, Valuair and Jetstar Asia, have agreed to merge in a first sign of consolidation among Southeast Asia's fledgling low-cost carriers, The Business Times reported today. The merger will form a larger company that will receive a capital injection of more than $S50 million ($44.80 million) from Qantas Airways Ltd's associate Jetstar, the paper said, quoting sources. Valuair shareholders, including cruise operator Star Cruises Ltd and Asiatravel.com, will become minority shareholders of the enlarged airline. Singapore's state investment agency Temasek Holdings Pte Ltd. owns 19 per cent of Jetstar. The deal is expected to be completed by the end of the year, the paper said. Tiger Airways, a third discount carrier based in the city-state, has said it will not break even this year and wants a partner to help it set up a second base outside of Singapore. - REUTERS " Share this post Link to post Share on other sites
H Azmal 0 Report post Posted July 20, 2005 IIRC Valuair is the company which at its launch so smugly said it is in a class of its own as an LCC, different from conventional LCCs like AK, and that it will 'surefire one' make money (read it in an SG newspaper). heh! Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted July 20, 2005 IIRC Valuair is the company which at its launch so smugly said it is in a class of its own as an LCC, different from conventional LCCs like AK, and that it will 'surefire one' make money (read it in an SG newspaper). heh! 2679[/snapback] Exactly, but it failed miserably in highlighting these differences - during that time, if one went to their website, it only focused on pricing and highlighted so-called cheap airfares, which of course, it could not compete with incumbents. I looked at the website - their so-called service differences are buried deep in the website - and can only conclude that Valuair would be around for very long in its current form. What was highlighted on their website was entirely wrong. At the end of the day, Valuair is confused with its own strategy and product. Share this post Link to post Share on other sites
Sing Yew 1 Report post Posted July 20, 2005 So, I guess Valuair may well be a true LCC then, no more free meals and all. Perhaps they may even stop flying to Perth, to prevent competing with QF. Share this post Link to post Share on other sites
Eugene Koh 4 Report post Posted July 20, 2005 Saw an article in Utusan.com.my this morning and I am suprise to read that AirAsia is buying Valuair? Is this true... AirAsia did not denied this report as mentioned in the news. Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted July 21, 2005 Saw an article in Utusan.com.my this morning and I am suprise to read that AirAsia is buying Valuair? Is this true... AirAsia did not denied this report as mentioned in the news. 2756[/snapback] Everything has a price. At the right price, even I would like to buy valuair Share this post Link to post Share on other sites
Raymond Ngu 0 Report post Posted July 21, 2005 Yeah, i also saw that news in the Chinese daily. It's reported that AirAsia would offer S$ 20 million and it'll lease 2 planes from Valuair after the buyover. Share this post Link to post Share on other sites
Sing Yew 1 Report post Posted July 21, 2005 Yup, and Mr TF confidently said that he'll be able to turn in a profit for Valuair in 2 months. Share this post Link to post Share on other sites
T Azahan 1 Report post Posted July 21, 2005 i saw in the newspaper today that air asia is doing due dilligence on the airline. so tony maybe up to something. Share this post Link to post Share on other sites
Roszaimy 0 Report post Posted July 30, 2005 They won't do well because of the "impossible" destinations they are proposing - eg Perth, Macau, India, China. Most of the destinations require flight time of more than 5 hrs, their planes will end up at the destination airport and cannot return until the next day. Also their cost structure, being based in SIN, won't be cheap. Unless they employ a huge number of cheap foreigners who will do the aircraft maintenance and flight attending. Share this post Link to post Share on other sites
Isaac 0 Report post Posted July 30, 2005 Don't you guys think AK should open its on base in JHB, to steal passengers from other LCC at SIN such as Jetstar Asia, Tiger Airways etc. ? Due to the MUCH lower operating cost at JHB, i'm pretty sure the air fare will always be lower than those LCCs based in SIN one. Share this post Link to post Share on other sites
Ken K. Kour 0 Report post Posted July 30, 2005 Don't you guys think AK should open its on base in JHB, to steal passengers from other LCC at SIN such as Jetstar Asia, Tiger Airways etc. ? Due to the MUCH lower operating cost at JHB, i'm pretty sure the air fare will always be lower than those LCCs based in SIN one. 3597[/snapback] Try as they might. the difference is prices will not matter enough to alot of people when faces with the hassle of trying to get across the causeway, especially at peak times. Share this post Link to post Share on other sites
