In a world first for low cost airlines, Jetstar and AirAsia announced today they would form a new alliance that would reduce costs, pool expertise and ultimately result in cheaper fares for both carriers.

The alliance brings together the Asia Pacific’s two leading low cost, low fare carriers and will focus on a range of major cost reduction opportunities and potential savings – to the benefit of customers throughout the region. 

Key to the agreement is a proposed joint specification for the next generation of narrow body aircraft, that will best meet the needs of the low fare customer of the future.  Both airline groups will also investigate opportunities for the joint procurement of aircraft.

Qantas Airways Chief Executive Officer Alan Joyce, Jetstar Chief Executive Officer Bruce Buchanan and AirAsia Group Chief Executive Officer Datuk Seri Tony Fernandes finalised the agreement in Sydney today.