A newly-minted alliance among eight major Asia-Pacific budget carriers could translate into cheaper prices for customers, according to one of the founding members.
Campbell Wilson, chief executive of Singaporean carrier Scoot, told CNBC's Street Signs on Tuesday that lower prices were a possibility if the alliance succeeded in boosting airlines' bottom lines.
"To the extent that it augments our traffic, increases our load factors, and makes us more profitable, then yes of course," he said, when asked about reduced fares.
Scoot, Tigerair Australia, The Philippines' Cebu Pacific and its subsidiary Cebgo, South Korea's Jeju Air, Vanilla Air of Japan, Thailand's Nok Air and NokScoot announced on Monday that they had formed the "Value Alliance," which reports called the world's biggest grouping of budget airlines.
Under the scheme, customers will be able to book flights with any of the eight member carriers on any one of their websites, as well as get access to a wider list of destinations and routing options.
"This [alliance] is in recognition that the eight members are strong in their home markets, but their brand reach isn't as universal as we would all like. So by working together, we can leverage on each other's home market distribution and the trust each has built there."