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Jetstar and AirAsia in deal to cut costs

6 January 2010

A battle for low-cost airline revenue in Asia intensified on Wednesday as Malaysia’s AirAsia and Jetstar, owned by Qantas Airways, finalised a passenger handling and aircraft maintenance deal they said would cut millions of dollars from annual costs.

The agreement signed by Jetstar and AirAsia stops short of equity participation, and will not involve code sharing – the revenue-generating arrangement under which airlines book passengers directly onto each other’s flights.

The deal also includes co-operation on airport passenger and ramp handling services, and reciprocal arrangements for switching passengers to available flights if one airline’s service is disrupted.


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