Singaporean budget carriers Jetstar Asia and Valuair are discussing an alliance or merger in response to stiff competition and problems in securing route authorities from other Asian countries.
The two carriers last week acknowledged they were exploring various ways to collaborate, but would not give details.
Jetstar Asia and Valuair have struggled to secure additional route authorities since launching last year. As a result, Jetstar Asia serves only four destinations with an underused fleet of four Airbus A320s. Valuair operates to six destinations, also with four A320s.
By comparison, Singaporean low-cost rival Tiger Airways is using its four A320s to serve nine destinations. Tiger says it will add two to three destinations over the next few months even though it will not take delivery of its fifth aircraft until next March.
BRENDAN SOBIE/SINGAPORE
Source: Flight International
