After weeks of on-off talks, Singapore-based low-cost carriers Jetstar Asia and Valuair have agreed to merge, creating a budget carrier double the size with Qantas Airways as a major shareholder.
This new carrier has yet to be named – because the Jetstar Asia and Valuair brands will continue for a few months at least – but the merged airline will be controlled by a new holding company called Orange Star.
An industry source says “it is too soon” to say whether the new airline will adopt that name, or when the airlines’ operations will be merged. Merging airline operations will take some time because Orange Star’s management first has to determine what traffic rights are to be retained.
Qantas, which owns 49.9% of Jetstar Asia, will own 40-49% of Orange Star, while the Valuair shareholders combined will account for as much as 20%, says the source.
LEITHEN FRANCIS/SINGAPORE
Source: Flight International
