Jetstar, AirAsia in talks

Qantas has confirmed that Jetstar has entered into talks with AirAsia over a “potential cost saving joint venture”, although indications are that it will not involve merging the two low cost carriers.

Qantas released a statement to the Australian Securities Exchange on December 18 confirming that the two have been involved in preliminary discussions, but no binding agreements have been reached. Some reports claim that the proposed joint venture would seek cost savings through joint procurement of aircraft, spares, ground handling services and other items between the two carriers, although Qantas has not specified what is being discussed between the two.