Formation flying
Asia has seen a proliferation of budget airlines in recent years, some of them struggling, but there are signs that consolidation might be in the offing. On Monday a new low-cost carrier coalition called the Value Alliance was announced. With eight members – including Japan’s Vanilla Air, Tigerair Australia and Nok Airlines from Thailand – the group plans to allow customers to make bookings across different airlines in one go. Between them the alliance members fly to more than 160 destinations with 176 aircraft. Although Singapore Airlines’ Scoot is a member, some of the biggest LCC players in the region – such as Air Asia and Jetstar – have not joined up and scepticism has been raised about how much these small airlines can achieve, even together. There are rumours that with survival a challenge in the competitive LCC market, mergers are likely to follow.