Monday, September 26, 2016

Eight Asian Budget Carriers Form Alliance, Share Booking Platform

Eight Asian Budget Carriers Form Alliance, Share Booking Platform

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Travellers of eight Asian budget carriers will now be able to view and book tickets in a single transaction on any of their websites for the first time. The “Value Alliance” partners include subsidiaries of Japan’s ANA Holdings Inc., Australia’s Tiger Air, the Philippines’ Cebu Pacific, and the Singapore Airlines Limited.

The eight airlines companies will collectively connect 160 destinations in countries like Thailand, Japan, Philippines, South Korea, China, and Australia and also 17 major hubs.

The Herald Sun reported that the alliance is expected to raise more money from the passengers through “add-ons” like meals, baggage allowance, seat choice and in-flight entertainment. These options will come in a single multi-airline itinerary.

The alliance will also increase its reach by taking advantage of the partner’s websites in their domestic markets.

“We are doing this for our own strategic reasons,” Reuters quoted Scoot CEO Campbell Wilson as saying, 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.”

The aim of the alliance is to bring the smaller carriers together as a viable alternative to airlines under the AirAsia and Jetstar groups across regions. However, it will not amount to a full-service partnership like the Oneworld, Star Alliance and the Sky Team. According to Wilson, cooperation across frequent flyer programmes, joint sales and marketing, as well as the coordination on network and prices require regulatory approval are not included.

Tigerair Australia boss Rob Sharp said that the alliance would help Aussies explore the less travelled parts of the South East Asia using a network that covers “one-third of the world.”

The only international destination served by Tiger Australia is Bali. The Airlines wants more overseas travellers to its routes in Australia as its itinerary will feature on the websites of its Asian-based partners.