Eight low-cost carriers (LCCs) from Asia forged an airline alliance called the Value Alliance on Monday. The aim of this new alliance is to provide greater convenience for its passengers.
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Altogether, the Value Alliance has a network of over 160 destinations and a fleet comprising 170 aircraft. Passengers can book flights on any of the members and request for extra services such as baggage and meals through a single website, according to an emailed statement by Vanilla Air.
Chief executives of the airlines in the alliance look forward to the potential benefits it may bring. Cebu Pacific's Lance Gokongwei indicates that the Value Alliance is "a clear example of how LCCs can accomplish more by working together than we could do individually". Scoot's CEO Campbell Wilson says that “By working together we can offer our guests a wider choice of destination and flights – at the most competitive airfares – all in one go”.
Industry analysts welcome the move. Dan Lu of JP Morgan Securities Japan Co, for instance says that unlike full service carriers, LCCs lack a network brand and through this new alliance, they will be able to expand their network.
With this move, Cebu Pacific becomes the first Philippine carrier to join an alliance. Philippine Airlines has expressed interest in joining an alliance but has not yet been able to do so.
This is also not the first time carriers in the alliance have done business together. In 2014, Tigerair's Philippine arm has been absorbed into Cebu Pacific's network. In addition, Tigerair and Scoot, which are both owned by Singapore Airlines, have existing partnerships to facilitate baggage transfers for their passengers.