Valuair is a LCC based in Singapore. Valuair currently offers flights between its base in Singapore to Jakarta, Denpasar and Surabaya, with Bangkok as a codeshare with Jetstar Asia. All routes are operated by 2 Airbus A320.
Location of Valuair main hub (Singapore Changi Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Valuair fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
14 total articles
10 total articles
This is the third report in a three-part series on Jetstar’s Singapore-based operations, which includes Jetstar Asia, Jetstar Airways and Valuair. The first two reports analysed Jetstar’s position in two key markets, Singapore-Indonesia and Singapore-China. This report looks at other markets and Jetstar’s overall outlook in Singapore.
Over the last year Jetstar has slowed down fleet and ASK expansion from Singapore after a period of rapid capacity growth for all of the country’s major LCCs, intensifying competition and impacting profitability. Seat capacity, however, has continued to grow rapidly as Jetstar Asia has increased its focus on short-haul Southeast Asian markets, particularly Malaysia, while decreasing its focus on medium-haul flights to North Asia, particularly mainland China.
In the coming months Jetstar Asia/Valuair will take two more A320s for a total of 20 aircraft, with the additional capacity once again being allocated to short-haul markets, primarily neighbouring Malaysia and Indonesia.
Jetstar aims to catch up in Indonesia after squandering first mover advantage inherited from Valuair
The Jetstar Group is preparing to increase its presence in the booming Indonesia market with additional services from its Singapore hub. The expansion follows several years of relatively flat capacity to Indonesia for Jetstar while its LCC competitors have pursued rapid growth.
Jetstar faces challenges as it tries to catch up on several years of missed opportunities in the Indonesian market. The group may struggle to compete with larger players, most of which are also pursuing rapid capacity expansion. Jetstar lacks an Indonesian affiliate, making it difficult to sell in the local Indonesian market, which remains heavily dependent on travel agents.
But the opportunities in Indonesia are too humongous for the usually conservative Jetstar to pass up. It needs to make a push or risk being shut out entirely in one of the largest and fastest growing markets in Asia.
This is the second part of a report looking at the Indonesia-Singapore market and the impact of the recently expanded bilateral between the two countries. The first part looked at the Jakarta-Singapore route, which accounts for 55% of Indonesia-Singapore capacity and has not seen growth in recent years due to bilateral restrictions.
The other 13 routes currently connecting Singapore and Indonesia have not generally been constrained by the bilateral. But there are huge opportunities to expand capacity on these smaller routes, driven by Indonesia’s rapidly growing economy and Changi’s position as the leading international hub for secondary cities in nearby Indonesia.
Leading LCC groups – including AirAsia, Lion and Tiger – as well as full-service carriers, led by Singapore Airlines regional subsidiary SilkAir, are likely to launch new routes connecting Indonesia with Singapore as well as add capacity in existing markets.
Jakarta-Singapore, one of the world’s largest routes, will see a major surge of additional capacity in 2013 as a newly expanded bilateral between Indonesia and Singapore is implemented. Singapore-based low-cost carrier Tiger Airways and its new Indonesian affiliate Mandala Airlines will be the biggest beneficiary as the Tiger Group currently only has a paltry 5% share of capacity in the Jakarta-Singapore market. Tiger and Mandala are each preparing to add several daily flights on the route, supplementing Tiger’s current schedule of only two daily flights.
Other LCCs – including Indonesia AirAsia, Lion Air and Jetstar Asia – will also benefit from the new bilateral while full-service carriers are likely to see their market share drop, including market leader Singapore Airlines (SIA). AirAsia and Lion will be keen to add Jakarta-Singapore flights to maintain their leading shares of LCC capacity in the market as Tiger/Mandala attempt to quickly match or surpass their existing thicker schedules. AirAsia and Lion each currently operate six daily flights on the route.
Singapore Airlines regional unit SilkAir poised for rapid growth after quietly emerging as SIA's gem
The Singapore Airlines Group is accelerating expansion at full-service regional subsidiary SilkAir, which has quietly emerged as a strong competitor in a short-haul market dominated by low-cost carriers. While sceptics in 2004, when the Singapore market was revolutionised with the launch of three new LCCs, questioned whether SilkAir would be able to survive the onslaught of low-cost competition in its home market the small carrier has instead thrived as Singapore’s LCC penetration rate has exploded. SilkAir has steadily outperformed its LCC competitors, including SIA affiliate Tiger Airways, as well as SIA’s mainline operation.
SilkAir is now preparing to undergo the biggest expansion phase in the 20-year history of the SilkAir brand. The SIA Group is planning to increase capacity (ASKs) at SilkAir by about 23% in the current fiscal year commencing 01-Apr-2012 (FY2013), outpacing the planned 3% capacity increase for SIA mainline as well as the expected capacity growth of the three main LCC groups serving the Singapore market: AirAsia, Jetstar and Tiger. Continued high double digit annual capacity growth is expected over the next decade as SilkAir’s fleet expands from 21 aircraft currently to a projected 54 aircraft by the end of 2021.
Singapore Airlines' (SIA) new long-haul low-cost subsidiary Scoot launches services on 04-Jun-2012, shaking up Singapore’s already highly competitive LCC market. Scoot becomes the third carrier in Asia’s fast-growing long-haul low-cost sector, joining Jetstar and AirAsia X. Scoot also becomes the fourth brand in the SIA Group portfolio, complementing short-haul low-cost carrier Tiger Airways (partially owned by SIA), short-haul full service carrier SilkAir (fully owned by SIA) and the mainline Singapore Airlines full service brand. SIA itself now primarily operates medium and long-haul routes, having handed over in recent years several of its short-haul routes to SilkAir as competition increased with LCCs.
LCCs now account for over 25% of passenger traffic at Singapore Changi Airport. LCCs have driven nearly all the growth at Changi since Tiger, Jetstar Asia and Valuair launched services in 2004 (Valuair was subsequently acquired by Jetstar Asia). The launch of Scoot and the expected expansion of Jetstar’s Singapore-based long-haul operation, which currently consists of only three aircraft, should ensure continued growth in Changi LCC traffic even as the country’s short-haul LCC market starts to approach saturation after several years of rapid growth.