Asian LCCs create world’s first low-cost alliance

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

Eight Asia Pacific-based low-cost carriers have joined forces to create the world’s first LCC alliance – the ‘Value Alliance’.

The eight LCCs – Cebu Pacific (including its Cebgo subsidiary), Jeju Air, Nok Air, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air – will bring their networks together, enabling passengers to book flights from any of the airlines in a single transaction, directly from each carrier’s own website.

This cooperation has been made possible by new technology developed by Air Black Box (ABB), which also allows passengers to book a range of ancillary services, such as seat and meal selection, extra baggage and other in-flight features, across a number of different airlines in a single itinerary.

The Value Alliance was launched in Singapore on Monday
The Value Alliance was launched in Singapore on Monday

Combined, the Value Alliance serves more than 160 destinations with a fleet of 176 aircraft across the Asia Pacific region. It will have bases in Singapore, Thailand, the Philippines, South Korea, Japan and Australia, operating to destinations as far afield as Guam and the Middle East.

“We are extremely excited by the opportunities this partnership presents to our guests. The Value Alliance partners are leaders in their respective territories, having forged loyal followings by providing value, service and commitment to their home markets. By working together we can offer our guests a wider choice of destinations and flights – at the most competitive airfares – all in one go,” said Scoot’s CEO, Campbell Wilson.

Patee Sarasin, CEO of Thailand’s Nok Air, added; “The opportunity enabled by ABB and the Value Alliance to offer ancillary products through interline channels is a significant benefit over other partnerships, given LCCs typically earn 10-25% of their revenues from such items.”

Scoot, Nok Air and NokScoot already offer each other’s flights and fares using the new ABB technology, and other alliance members will follow in the coming months. ABB’s Air Connection Engine (ACE) platform has filed for NDC Certification with IATA and is expected to complete full certification soon.

“The technology enables us to interface with other airlines within the Value Alliance, including those using different passenger service systems (PSS), to provide a solution to a guest’s travel query – even on routes Vanilla Air may not itself serve to connect Japan to the rest of Asia Pacific,” commented Katsuya Goto, president of Vanilla Air.

And Lance Gokongwei, president & CEO of Cebu Pacific, was equally enthused by the new alliance. “All of our airline partners are champions in their local markets and well regarded for their value and service regionally and nationally. The Value Alliance is a clear example of how LCCs can accomplish more by working together than we could do individually,” he said.
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