Asian LCC Value Alliance establishes a new direction, using a new connectivity technology platform
Asia’s LCC sector is further evolving by embracing partnerships and a new loose form of alliances. The newly established Value Alliance and the smaller China-based U-FLY Alliance – launched in early 2016 using the same technology platform – represent a new competitive response to Asia’s leading LCC groups.
Partnerships are critical for unlocking a new phase of growth in the relatively crowded and increasingly competitive Asian market. This is particularly important for independent LCCs that are outside the region’s three major groups – AirAsia, Jetstar and Lion. Value and U-FLY members combined account for approximately 19% of LCC capacity in Asia Pacific; this compares with 16% for AirAsia/AirAsia X, 11% for Lion and 9% for Jetstar.
Of the 53 LCCs based in Asia Pacific, nine are members of the Value Alliance and four are members of U-FLY. AirAsia/AirAsia X has eight affiliates or subsidiaries with a ninth to be launched by the end of 2016. The Lion Group consists of three LCCs and includes Asia’s second largest (along with two full service airlines), while the Jetstar Group has four subsidiaries or affiliates.
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