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Cebu Pacific Forms Alliance with Asian Budget Carriers

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.  

Image by Wayside765/Wikimedia
The alliance is composed of the Philippines' Cebu Pacific, Jeju Air, Nok Air, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air.  Among notable LCCs missing from the alliance are AirAsia and Jetstar.  Nonetheless, this alliance is posed to become the world's largest for LCCs.  

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.



7 comments:

  1. i hope the Getgo card can be used on all those low cost airlines.

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  2. I hope that Cebu Pacific will launch new flights especially some parts of India (Delhi, Mumbai, Chennai, Hyderabad, etc.) to restore direct flights between the Philippines and India.

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    Replies
    1. CEB will just rely on alliance airlines to fly in those Indian cities.

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    2. You mean connecting flight right?

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    3. Code share agreement with alliance airlines

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    4. Oh ok thanks for the info.

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  3. After several weeks of my hiatus in visiting this Philippine aviation news website, still no latest news yet, but last May 17, 2016.

    Since you stopped releasing updates about Philippine aviation, especially on Cathay Pacific's Airbus A350 inaugural flight in Manila, let me ask some questions? What happened on JICA's feasibility study regarding to new and much bigger airport that would replace NAIA? Is there any update about these? And also Philippine Airlines, is there any updates about their features of their ordered Airbus A350-900XWB, refurbishment of their Airbus A330-300, and route expansion? And anything else?

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