Tigerair Australia and other budget airlines form world's largest low-cost carrier alliance

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Tigerair Australia and other budget airlines form world's largest low-cost carrier alliance

Updated
Tigerair is a member of the world's largest low-cost carrier alliance.

Tigerair is a member of the world's largest low-cost carrier alliance.

Virgin Australia's budget airline, Tigerair Australia, has formed a new alliance with seven peers in Asia, aimed at boosting passenger numbers and cutting airfares.

Value Alliance is the world's largest alliance of budget carriers and offers a website allowing passengers to book tickets and extra services like additional baggage and meals across airlines in the group, according to the statement on Monday.

The members offer flights to more than 160 destinations with 174 aircraft, it said.

The partnership follows a Chinese alliance by low-cost airlines linked to HNA Group earlier this year. The aim of the new alliance is to sell tickets, or even baggage allowance and in-flight meals across the group's eight airlines in a single transaction.

See also: Are airline 'alliances' actually useful for passengers?

Tigerair chief executive Rob Sharp said the creation of the world's largest low-cost carrier alliance will "deliver significant benefits" for its customers.

"Tigerair Australia customers will be able to view, select and book the best available fares and optional extras like meals and seat selection from any partner airline in a single transaction, directly from the Tigerair Australia website," Mr Sharp said Monday.

Mr Sharp said Tigerair Australia would expand its existing network of 21 routes and 12 destinations to more than 160 destinations across the Asia Pacific region.

Tigerair has 17 aircraft and operates around 420 flights a week at present, the bulk of which are domestic.

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Its biggest rival locally is Qantas's budget carrier Jetstar.

Internationally, Tigerair only flies to Bali.

See also: How to use your frequent flyer points

"By working together we can enable more people to travel for less to more places than ever before in a single transaction from the convenience of each airlines website," Mr Sharp said in a statement.

Tigerair is working on incorporating new technology developed by Air Black Box, which will enable the airline to sell connecting fares throughout the region from the Value Alliance partners in a single transaction.

Tigerair customers will also be able select their seat and meal, variable baggage allowances and other inflight features.

The new booking capability is expected to be available on the Tigerair's website in the "coming months."

The other seven Value Alliance members, include: Cebu Pacific, Jeju Air, Nok Air, NokScott, Scoot, Tigerair Singapore and Vanilla Air, and membership is by invitation only.

The eight airlines collectively served more than 47 million travellers from 17 hubs last year.

See also: Australia's most complained about airline

Missing from the group are the region's best-known and biggest low-cost carriers, AirAsia and Jetstar, which is owned by Qantas Airways. AirAsia Chief Executive Officer Tony Fernandes and media offices of Jetstar and Lion Air in Indonesia didn't immediately respond to e-mails seeking comment. IndiGo, India's No. 1 carrier, is not part of the group as well. Its operator InterGlobe Aviation declined to comment.

Jetstar, which isn't a member of an airline alliance, has it partnerships with Qantas, Emirates Skywards, Vietnam Airlines' Lotusmiles and JAL Mileage Bank, according to its website.

The three major international airline alliances are Star Alliance, oneworld and Sky Team. Qantas is a member of the OneWorld alliance.

Among budget carriers worldwide, Europe's Ryanair Holdings and EasyJet have eschewed alliances while still managing to lure enough passengers to be among the world's biggest airlines.

AAP with Bloomberg

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