AirAsia, Jetstar reveal co-operation plans

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Low-cost carriers Jetstar and AirAsia have formed a new alliance that will allow them to study the joint purchase of new aircraft, co-operate in ground and passenger handling services, and take on each other's passengers when there is a disruption.

The agreement will reduce costs and pool their expertise, and result in lower fares for customers throughout the Asia Pacific, say the carriers. This is the first time two major low-cost carriers are co-operating on such a large scale, they add. Read the full story here.

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Read the recent Airline Business cover interview with Air Asia chief Tony Fernandes

Read our recent interview with Jetstar chief Bruce Buchanan about its plans for pan-Asian growth

Read our recent wide-ranging feature about the progress of existing low-cost carrier alliances