AirAsia and Jetstar announce alliance

Last Updated: Thursday, January 7, 2010 - 13:51

Melbourne: Malaysia`s AirAsia, the region`s biggest budget airline, and Jetstar, a low cost-carrier subsidiary of Australia`s Qantas Airways, have announced an alliance.

The alliance can potentially generate cost-savings worth hundreds of millions of dollars a year and result in even lower fares.

Under the alliance unveiled in Sydney yesterday, Jetstar and AirAsia will explore opportunities to jointly procure next generation narrow-body aircraft, co-operate in passenger handling in Australia and Asia, pool aircraft components and spare parts and jointly acquire engineering and maintenance supplies and services.

The airlines said the alliance would reduce costs, pool expertise and result in cheaper fares. AirAsia Group Chief Executive Tony Fernandes said the alliance showed that low-cost carriers could work together to stimulate the market and to operate on lower fares.

"The key thrust is to increase our efficiency and find ways of getting even lower fares. From this I believe we will then move into revenue ideas and we`ve already got a few that we`ve been discussing," he was quoted as saying by the Australian Associated Press (AAP) news agency.

Fernandes said common aircraft type specifications for
next generation narrow-body airplanes would be pro-actively
pursued by both airlines in view of the many efficiencies this
would bring.

PTI



First Published: Thursday, January 7, 2010 - 13:51

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