Jetstar and Air Asia announce “cost sharing alliance”

6 Jan 2010 by Mark Caswell

Malaysia-based carrier Air Asia and Qantas’ low-cost subsidiary Jetstar have announced an alliance aimed at reducing costs, pooling expertise and driving down fares.

The two carriers have agreed a “cost sharing alliance”, with initiatives including co-operation in the provision of passenger and ground handling at overlapping airports within Australia and Asia, the pooling of aircraft components and spare parts, and reciprocal arrangements for passenger disruption management.

The agreement also proposes “joint specification” for the carriers’ next generation of narrow bodied aircraft, and the future possibility of joint procurement of these aircraft. Both Jetstar and Air Asia currently predominantly use A320-200s for their short-haul routes.

Rumours have persisted over the last twelve months of the possibility of a merger between the two carriers, but this non-equity alliance does not go as far as creating codeshare agreements or a joint venture on routes.

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Report by Mark Caswell

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