The alliance is expected to save the air carriers millions as they pool their resources. “The savings could be quite significant. We will pass them on to the consumer,” Mr Westaway said. “It’s early days but if we can reduce our costs by 5 to 10%, consumers could save close to that amount in airfares.”
Although Mr Westaway has promised to pass the savings on to travellers in the next few months, he also envisages long-term savings from the deal. The alliance will be be looking to invest in mutually owned aircraft, specifically a new generation of narrow-body aircraft.
Jetstar is a Qantas Group airline. “This is the first alliance between two low-cost carriers of this size anywhere in the world,” said Qantas CEO Alan Joyce.
Source: Perth Now.
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