Low-cost airline alliance launched

By The Nation

AirAsia and Jetstar today announced the first's low-cost airline alliance that includes cooperation on passenger handling and possible joint purchases of aircraft as two of Asia's biggest budget airlines seek to trim costs.

Signed in Sydney, the agreement will cover the joint fleet specification and consideration in aircraft purchase to lower the cost. Both will also share aircraft parts and cooperate on passenger handling at airports in Australia and Asia, aside from joint pricing.

Alan Joyce, CEO of Qantas Airlines which is the parent company of Jetstar, said the alliance will strengthen both airlines' operations in Asia Pacific - the area of fiercest competition. AirAsia CEO Tony Fernandes added that this alliance will further maintain the airline's Nov.1 position in Asia.

In 2009, their combined revenue totalled 3 billion Australian dollar. Both operate 145 aircraft.

-- The Nation 2010-01-10

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One can only hope this doesn't mean Jetstar will start using KL as their hub in Asia.