Jetstar, AirAsia forging budget airline alliance

GlobalTimes,Jetstar, AirAsia forging budget airline alliance

Jetstar and AirAsia introduced plans Wednesday to cut costs and ticket prices as the first measure that could change the budget market in Asia.

"By getting together and focusing on areas where we can actually reduce costs we think it's a really exciting opportunity," said Jetstar chief executive Bruce Buchanan, lauding the move as cost-efficient.

"We have identified ... many hundreds of millions of dollars of cost-saving opportunities ... as we launch this partnership going forward," Buchanan said.

Jetstar, a subsidiary of Australian flag carrier Qantas, will, in cooperation with Malaysia's AirAsia, jointly investigate procuring new aircraft and cooperate on buying engineering and maintenance supplies.

Qantas chief Alan Joyce applauded the agreement as enhancing competitiveness for both sides.

"Jetstar and AirAsia offer unmatched reach in the Asia- Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximize that scale," he said.

Jetstar, boasting a fleet of 60 aircraft, is the world's largest long-haul budget carrier, while AirAsia commands a leading edge in the Asian low-cost market.