Cross-border airline JV model: is there still room in Southeast Asia?

Southeast Asia was a pioneering region for the cross-border joint venture model. AirAsia and Jetstar were the first movers, launching new LCCs in multiple Southeast Asian markets more than 10 years ago.

Lion, Scoot, VietJet and AirAsia X have joined the trend over the past five years. There are now 11 cross-border JVs in Southeast Asia, operating in six countries. The cross-border JV model has enabled ambitious airline groups to circumvent airline ownership regulations and expand rapidly throughout ASEAN - a dynamic market with a fast expanding middle class.

With so many JV airlines now operating and the introduction of ASEAN open skies, which has opened up the regional international market to any Southeast Asian airline regardless of domicile, it is questionable whether more JVs are needed. However, AirAsia, Lion and VietJet are still seeking to expand their ASEAN portfolio while others, including Jetstar, remain on the lookout for potential opportunities.