Value Alliance: the hubs, focus airports and routes where alliance members might gain synergies

Since the Value Alliance was announced in May-2016 as the second low cost airline alliance there has been industry interest about how and where the alliance can deliver synergies. The Value Alliance was a popular discussion item at CAPA's recent LCCs in North Asia Summit (7/8-Jun-2016) in Narita. Tokyo Narita is the alliance hub with more service from Value members (five) than any other. But Asia's most popular airports for Value members are not where the alliance has a local member: Taipei and Hong Kong.

In terms of frequency, Manila and Bangkok Don Mueang have the most Value flights, reflecting their local membership there. The local Value member based at an airport typically dominates the hub, accounting for over 90% of Value flights. That creates a strong feed network for other members but also - potentially - competition that may be too strong. Members overlap on only six routes so far and their combined frequency gives them a scale advantage against non-Value LCCs. Although it is premature to evaluate the effectiveness of the alliance - new members will join and existing members will grow - this analysis looks at where there are network opportunities for cooperation.