Value Alliance world’s first pan-regional LCC alliance

Eight Low Cost Carriers (LCC) today announced the formation of the world’s largest LCC alliance – the Value Alliance.

Cebu Pacific (including subsidiary Cebgo), Jeju Air, Nok Air, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air will bring their extensive networks together to be the partner airlines.

The move will provide greater value, connectivity and choice for travel throughout Southeast Asia, North Asia and Australia.

Customers will be able to view, select and book the best-available airfares on flights from any of the airlines in a single transaction, directly from each partner website, thanks to groundbreaking technology developed by Air Black Box (ABB).

Unlike typical interline technologies, ABB also allows guests to enjoy the full suite of ancillary choices they have come to appreciate from LCCs, such as seat and meal selection, variable baggage allowances and other inflight features – across all partner airline sectors in a single itinerary.

ABB’s Air Connection Engine (ACE) platform has filed for NDC Certification with IATA and is expected to complete full certification soon.

The Value Alliance airlines together cover a third of the earth and serve more than 160 destinations with a collective fleet of 176 aircraft across the Asia Pacific region.

It will strengthen distribution in their non-home markets, expand their saleable networks via the provision of interline itineraries, retain their ancillary revenue opportunities and offer their customers a better, one-stop-shop experience.

Scoot CEO Campbell Wilson said “we are extremely excited by the opportunities this partnership presents to our guests. The Value Alliance partners are leaders in their respective territories, having forged loyal followings by providing value, service and commitment to their home markets. By working together we can offer our guests a wider choice of destinations and flights – at the most competitive airfares – all in one go.”

Nok Air CEO Patee Sarasin, “the opportunity enabled by ABB and the Value Alliance to offer ancillary products through interline channels is a significant benefit over other partnerships, given LCCs typically earn 10-25 percent of their revenues from such items.”

Scoot, Nok Air and NokScoot are already offering each other’s flights and fares powered by the new ABB technology and other alliance members will follow in the coming months.

Cebu Pacific president and CEO, Lance Gokongwei, concluded, “all of our airline partners are champions in their local markets and well regarded for their value and service regionally and nationally. The Value Alliance is a clear example of how LCCs can accomplish more by working together than we could do individually.”

LCC 2 Image: L-R Timothy O’Neil-Dunne (ABB), Katsuya Goto (Vanilla Air), Lee Lik Hsin (Tigerair), Robert Sharp (Tigerair Australia), Campbell Wilson (Scoot), Piya Yodmani (NokScoot), Patee Sarasin (Nok Air), Ken Choi (JEJUair), Michael B Szucs (Cebu Pacific)

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