Singapore 2010: Jetstar-AirAsia alliance has long way to run

Tony-Bruce.jpgLet’s not get too carried away about the significance of the Jetstar-AirAsia alliance that was signed earlier in January.

Yes, this is the first time that two major low-cost carriers anywhere in the world are coming together and that is important. They will certainly benefit from working together on ground-handling and engineering services – their combined influence will help them source for cheaper providers of these services.

Apart from ticket prices, costs are the most important factor for these airlines.

The significance of their influence on the design of the next generation of narrowbody aircraft, however, is premature. Yes, they could be an important factor. But they are not due to order new aircraft for at least another seven or eight years and that is a long time in the industry – new airlines will come on board, some will fall by the wayside, and the manufacturers themselves may have different ideas.

It is far too early to say if this alliance will end up doing everything it sets out to do.



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