New airline partnership – AirAsia & JetStar
by Dave on 08/01/10 at 11:45 am
AirAsia and JetStar announced on Wednesday they will form an alliance that could literally change the Asian lowcost flying market. The first alliance ever between two lowcost airlines is expected to save the companies millions of dollars in costs.
“By getting together and focusing on areas where we can actually reduce costs we think it’s a really exciting opportunity. We have identified… many hundreds of millions of dollars of cost saving opportunities, and we think that is an exciting opportunity for us as we launch this partnership going forward,” said Jetstar chief executive Bruce Buchanan.
Australian JetStar will share passenger handling services with Malaysian AirAsia and are also planning to buy aircrafts and maintenance supplies together.
JetStar is the largest long-haul budget carrier in the world, operating 60 aircrafts while AirAsia flies to 60 destinations with its 85 aircrafts.
Should we expect even lower prices on airfare or will the alliance reduce competition and diminish the battle for the lowest prices? That remains to be seen.
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