LCC alliances in Asia: Value and U-FLY different strategies

It has been two years since LCCs in Asia captured headlines by establishing the world’s first LCC alliances. The 13 founding members of the U-FLY and Value alliances were naturally upbeat about the prospects, but so far neither grouping has been able to generate a significant volume of cross-bookings.

Value Alliance members remain relatively optimistic, although they acknowledge that the integration has been more challenging than expected. The alliance is planning to relaunch its website in Apr-2018 with a new booking functionality and to start marketing joint itineraries more aggressively.

All Value Alliance members will soon finally be on a common technology platform provided by Air Black Box, designed to facilitate interlines. U-FLY also initially selected the same Air Black Box platform, but subsequently decided not to proceed with implementation, raising questions whether a common platform is really needed for LCCs to leverage interline opportunities.

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