DAYflyer
Topic Author
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

Singapore's Budget Airlines To Merge

Mon Jul 25, 2005 2:19 am

SINGAPORE - Singapore-based low-cost carriers Jetstar Asia and Valuair Ltd. announced Sunday that they were merging — the first consolidation in Asia's cutthroat, crowded budget travel market.

The companies issued a joint statement announcing the formation of a new entity that will "own and operate both airlines."

Australia's Qantas Airways Ltd. holds a 49 percent stake in Jetstar Asia, while the Singapore government's investment arm, Temasek Holdings, controls 19 percent.

Valuair is owned by a group of Singapore-based executives.

Qantas chief executive Geoff Dixon will be chairman of the new airline while Jetstar Asia chief executive Ken Ryan will hold a similar executive portfolio after the merger.

No information was provided on the role that former Valuair executives would play following the merger.

"Mr. Dixon said Jetstar Asia and Valuair would operate in their own right for the foreseeable future, with little or no change to the service offered by either airline," the statement said.

Analysts have said airlines are suffering due to soaring jet fuel prices. Valuair, the first budget carrier launched in Singapore, has yet to turn a profit.

Earlier this month, Singapore Airlines Ltd. chief executive Chew Choon Seng said the global airline industry needs to consolidate as rising oil prices continue to undermine profits.

Singapore Airlines, the world's second largest carrier by market capitalization, controls the third Singapore-based budget airline, Tiger Airways.

Jetstar and Valuair face stiff competition from Tiger Airways, as well as from Indonesia's Lion Air, Malaysia's AirAsia and Thailand's Nok Air.

Jetstar Asia flies from Singapore to India, Hong Kong, Bangkok, Manila and Taipei. Valuair flies from Singapore to Hong Kong, Jakarta, Perth and Bangkok.
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Ozair
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Joined: Mon Jan 31, 2005 8:38 am

RE: Singapore's Budget Airlines To Merge

Mon Jul 25, 2005 9:50 am

Something had to save Jetstar Asia as it is going down the tube fast. New aircraft keep being fobbed off on lease as they struggle to fill their current aircraft.

Quoting DAYflyer (Thread starter):
Jetstar and Valuair face stiff competition from Tiger Airways, as well as from Indonesia's Lion Air, Malaysia's AirAsia and Thailand's Nok Air.

Is it just me or is there just way too many low cost carriers in the Singapore area? Surely such a small population (and lack of a middle class in surrounding countries) cannot support these services as well as Singapore Airlines.
 
BBD
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RE: Singapore's Budget Airlines To Merge

Mon Jul 25, 2005 4:05 pm

In reporting the story, The Australian newspaper has also stated that ".....sources in Singapore have confirmed to The Australian that Qantas is also in discussions with Malaysia's AirAsia, the largest discount carrier in Southeast Asia, over the creation of a cut-price airline group that would have hubs at every major destination in the region. AirAsia almost derailed the Jetstar Asia-Valuair deal last week after it was reported that the Malaysian carrier was prepared to inject $S20 million into Valuair....."
 
KFly
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Joined: Sun May 23, 2004 8:07 pm

RE: Singapore's Budget Airlines To Merge

Mon Jul 25, 2005 8:30 pm

And the newly merged Jetstar Asia-Valuair entity will be called Orange Star  Smile


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tsentsan
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RE: Singapore's Budget Airlines To Merge

Mon Jul 25, 2005 9:26 pm

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CV580Freak
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RE: Singapore's Budget Airlines To Merge

Tue Jul 26, 2005 12:43 am

Consolidation is the name of the game.

One to ponder on, consolidate all US carriers together and call it PanAm  wink l
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