Hunting party

The race for low cost dominance in Asia took an interesting turn on January 6 with AirAsia and Jetstar announcing an alliance between the two carriers, coincidentally on the same day rival airline Tiger Airways launched its initial public offering.

The two carriers, which effectively compete for traffic within Asia and to and from Australia, will cooperate on a number of areas in an effort to gain further economies of scale and reduce the costs of their operations. However, there will be no equity exchange or merger between the two carriers in the short term.

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