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SYDNEY — Qantas-subsidiary Jetstar and AirAsia announced an alliance that will “reduce costs, pool expertise and ultimately result in cheaper fares.” This move is interesting to watch as it is part of a new trend – the emergence of cooperation between low cost carriers (LCCs) and could be a trigger transforming the Asian rapidly growing budget airline market.

Jetstar will share parts and ground and passenger handling services with Malaysia’s AirAsia, which is Asia’s biggest budget airline. They will also investigate jointly procuring new aircraft, cooperate on buying engineering and maintenance supplies and will carry each other’s passengers stranded by breakdowns and other disruptions, as reported.

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http://boardingarea.com/blogs/thingsinthesky/2010/01/06/jetstar-and-airasia-form-lcc-alliance/