Value Alliance
Value Alliance was a low-cost airline alliance serving the Asia-Pacific region. It was established in May 2016 by eight airlines and allowed passengers to book connecting journeys involving multiple member carriers through a single transaction.[1]
It was the first pan-regional alliance formed specifically for low-cost airlines. The alliance became inactive during 2023, and its joint venture was subsequently terminated.[2]
History
Value Alliance was launched in Singapore on 16 May 2016 by eight low-cost airlines from across the Asia-Pacific region.[1]
The founding airlines were:
Cebu Pacific
Jeju Air
Nok Air
NokScoot
Scoot
Tigerair
Tigerair Australia
Vanilla Air
Cebgo, a wholly owned subsidiary of Cebu Pacific, also participated through the Cebu Pacific group.
At launch, the member airlines collectively operated approximately 176 aircraft and carried more than 47 million passengers during 2015. Their networks covered more than 160 destinations across the Asia-Pacific region.[3]
The alliance was created shortly after the establishment of U-FLY Alliance, another organisation formed by Asian low-cost carriers.
Booking system
Value Alliance was intended to make connecting between independent low-cost airlines easier.
Traditional low-cost carriers generally sold point-to-point journeys through separate reservation systems. Passengers connecting between two unrelated airlines often had to make separate bookings and manage baggage or additional services independently.
Value Alliance developed a shared booking platform that allowed participating airlines to sell journeys involving multiple members.
Passengers could select services including:
Connecting flights
Checked baggage
Seat selection
Meals
Other optional services
The complete itinerary could be booked and paid for through one participating airline's website.
The reservation technology was provided through Air Black Box, which developed systems designed to connect airlines using different passenger-service platforms.
Network
Value Alliance linked destinations across:
Southeast Asia
Northeast Asia
South Asia
Australia
The Pacific region
Its member airlines served markets including:
Australia
Japan
Philippines
Singapore
South Korea
Thailand
The combined network was designed to provide connecting journeys between destinations that were not served directly by a single member.
Member airlines
During its later active period, Value Alliance was associated with five operating airline brands.
| Country | Airline | Joined | Notes |
| Philippines | Cebu Pacific | 2016 | Founding member |
| Philippines | Cebgo | 2016 | Cebu Pacific subsidiary |
| South Korea | Jeju Air | 2016 | Founding member |
| Thailand | Nok Air | 2016 | Founding member |
| Singapore | Scoot | 2016 | Founding member |
The alliance did not operate flights itself. Each airline retained its own:
Brand
Fleet
Air operator certificate
Fare structure
Employees
Management
Loyalty arrangements
Former members
| Country | Airline | Membership | Reason for leaving |
| Thailand | NokScoot | 2016–2020 | Liquidated during the COVID-19 pandemic |
| Singapore | Tigerair | 2016–2017 | Merged into Scoot |
| Australia | Tigerair Australia | 2016–2018 | Withdrew from the alliance |
| Japan | Vanilla Air | 2016–2019 | Withdrew before being merged into Peach Aviation |
Tigerair
Tigerair Singapore was one of the founding members of Value Alliance.
The airline was merged into Scoot on 25 July 2017. Its routes and aircraft were progressively incorporated into the enlarged Scoot operation.
Scoot remained associated with Value Alliance after the merger.
Tigerair Australia
Tigerair Australia was a founding member of the alliance.
The airline withdrew from Value Alliance in 2018.
Its operations were later suspended during the COVID-19 pandemic, and parent company Virgin Australia discontinued the Tigerair Australia brand.
Vanilla Air
Vanilla Air announced that it would withdraw from Value Alliance on 30 March 2019.[4]
The airline was subsequently merged into Peach Aviation in October 2019.
Peach Aviation did not become a member of Value Alliance.
NokScoot
NokScoot was a Thailand-based joint venture involving Nok Air and Singapore Airlines subsidiary Scoot.
The airline operated medium- and long-haul low-cost services from Bangkok.
NokScoot entered liquidation in 2020 after the COVID-19 pandemic caused severe disruption to its operation.
COVID-19 pandemic
The COVID-19 pandemic substantially disrupted the member airlines.
Border restrictions across the Asia-Pacific region caused international traffic to decline and led to the suspension of numerous routes.
NokScoot was liquidated during 2020, while other members reduced operations, grounded aircraft and concentrated on their individual recoveries.
The disruption weakened the alliance's shared connecting network and reduced the relevance of its multi-airline booking system.
Inactivity and closure
Value Alliance's website stopped supporting alliance bookings during 2023.
A notice on the website instructed passengers with questions about existing reservations to contact the airline through which their journey had been booked.
The alliance did not announce new members, routes or substantial commercial activity after the website was withdrawn.
Jeju Air later reported that Value Alliance operations had been suspended, the joint-venture agreement had been terminated and its stake in the associated company had been sold.[2]
Value Alliance was therefore considered defunct by 2024.
Purpose and business model
Value Alliance differed from the major global airline alliances.
It did not primarily focus on:
Shared airport lounges
Elite frequent-flyer benefits
Coordinated premium services
Common branding
Worldwide corporate-travel contracts
Its principal purpose was to connect the reservation systems and networks of independent low-cost airlines.
The model was intended to provide passengers with more destinations while allowing member airlines to remain operationally separate.
Relationship with other alliances
Value Alliance was created during a period when several regional low-cost airline alliances were being established.
Other organisations included:
U-FLY Alliance
Vanilla Alliance
Value Alliance focused on low-cost airlines across the wider Asia-Pacific region.
U-FLY Alliance was centred primarily on carriers associated with China and Hong Kong, while Vanilla Alliance connected airlines in the Indian Ocean region.
None developed the same range of integrated loyalty and airport benefits offered by Star Alliance, SkyTeam or Oneworld.
Branding
The alliance used the slogan Asia Pacific's Best Value Airlines.
Its visual identity featured a multicoloured circular design intended to represent the networks and individual identities of its member airlines.
Member aircraft generally retained their normal airline liveries rather than receiving a standard alliance design.
Legacy
Value Alliance represented an attempt to apply the airline-alliance model to independent low-cost carriers.
Its shared booking system addressed one of the main difficulties associated with connecting between unrelated low-cost airlines.
However, airline mergers, member withdrawals, the closure of NokScoot and the disruption caused by the COVID-19 pandemic reduced the alliance's membership and network.
The eventual termination of the joint venture demonstrated the challenges involved in maintaining a common booking platform between low-cost airlines with separate business strategies and reservation systems.
See also
U-FLY Alliance
Vanilla Alliance
Cebu Pacific
Jeju Air
Nok Air
Scoot
Airline alliance
Low-cost carrier