Valuair

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Valuair

IATA VF	ICAO VLU	Callsign VALUAIR
Founded		2004
Hubs		Singapore Changi Airport
Focus cities		Soekarno-Hatta International Airport
Fleet size		2
Destinations		4
Parent company		Orange Star
Headquarters		Singapore
Key people		Chong Phit Lian (CEO)
Website: http://www.valuair.com

Valuair Limited (Chinese: 惠旅航空) is a Singapore-based low-cost carrier. It was launched in 2004, offering initial services to Bangkok and Hong Kong. It differentiates itself from other low-cost carriers in that it offers frills such as a baggage allowance of over 20 kg, in-flight food, allocated seats, and 32 inch seat pitch. It now mainly operates scheduled services to major cities in Indonesia.

1 History
2 Valuair and Jetstar Asia merge
3 Valuair today
4 Destinations
5 Fleet
6 External links
7 References

[edit] History

Valuair was the first low-cost airline to begin operations in Singapore, although some do not consider it as such by other definitions. Launching its first flight on May 5, 2004, it was funded by local businessmen, and had the expertise of an ex-Singapore Airlines employee as its chief executive.

Valuair sought to differentiate itself from its competitors like the then rival, Jetstar Asia and Tiger Airways by offering free hot meals, wider legroom and assigned seating, and marketed itself as a low-fare airline. The airline flew beyond the traditional five-hour radius typical of low-cost carriers and flew to destinations like Perth, Xiamen and Chengdu. The airline even had ambitious plans flying to Australia's East Coast and Northeast Asia using wide-body aircraft. In its plans, a Business Class and cargo operations was even thought of. However, rising fuel prices, along with lack of financial backing and the deep pockets of Qantas Airways' Jetstar Asia and Singapore Airlines backed Tiger Airways finally forced the airline to concede defeat in the highly-competitive local scene.

On 24 July 2005, the carrier announced plans to merge with Jetstar Asia. Both Jetstar Asia, a Qantas-backed airline, and Valuair were planning to operate their respective routes normally for the foreseeable future. The announcement came after several weeks of speculation about consolidation within Southeast Asia's low-cost airline industry.

[edit] Valuair and Jetstar Asia merge

On 24 July 2005, Jetstar Asia, Valuair and Qantas merged to form Orange Star, in the first major consolidation of Southeast Asia's crowded low-cost airline industry. Jetstar Asia and Valuair said they would continue to operate their normal routes under their own brands in the meantime, with little or no change to the service offered by either airline. Qantas chief executive officer and Jetstar Asia chairman Geoff Dixon chairs the new company. Jetstar Asia chief executive officer Chong Phit Lian has been appointed as the chief executive of both airlines. The new company is to expect a cash injection of around more than S$50 million in fresh capital into the new entity, largely to be provided by Qantas. Shareholders of Valuair, including airline industry veteran Lim Chin Beng, Malaysia's Star Cruises and Asiatravel.com, have now become minority shareholders in the merged company.

From 11 September 2005, Valuair began flying twice daily from Singapore to Jakarta. The new daily flight began as VF208 from Singapore to Jakarta, and VF207 from Jakarta to Singapore. As of 1 February 2008, flights to Jakarta have become four times daily.

From 23 October 2005, Valuair commenced daily flights from Singapore to Surabaya, VF531 operated from Singapore to Surabaya, and VF532 vice versa. Flights to Hong Kong were suspended.

From 26 January 2006, Valuair commenced three weekly flights from Singapore to Denpasar Bali. As at 1 February 2008, the service has been upgraded to become four times per week.

[edit] Valuair today

Valuair today only flies to Indonesian destinations - namely Jakarta, Surabaya and Denpasar. In response to the Civil Aviation Authority of Singapore's rejection of AirAsia-backed airline AWAir's application to fly to Singapore, Indonesia embarked on a policy of protectionism. This prohibited low-cost carriers of Singapore and Indonesia from adding more flights. Jetstar Asia had not yet established routes into Indonesia, so the merger is seen as the airline's strategy to get an early entrance into the lucrative Indonesian market.

Valuair flights are operated by Jetstar Asia crew, with the in-flight menu and entertainment virtually the same as Jetstar Asia's.

In February 2008, Jetstar Asia announced that it would begin flights to Medan later in the year. As existing protectionism policies are in place, it is expected that the flights would be operated under Valuair's code.

[edit] Destinations

A Valuair Airbus A320 at Singapore Changi Airport Terminal 1

Valuair currently offers flights between its base in Singapore to Jakarta, Denpasar and Surabaya, with Bangkok as a codeshare with Jetstar Asia. Since the merger with Jetstar Asia, the airline has cut routes to Perth, Hong Kong, Xiamen, Chengdu and Bangkok, as part of a consolidation exercise between both low-cost carriers.

City	Airport	Commenced	Terminated	Frequency	Remarks
Asia
East Asia
China
Chengdu	Chengdu Shuangliu International Airport	20 April 2005	30 October 2005
Hong Kong	Hong Kong International Airport	7 May 2004	23 October 2005
Xiamen	Xiamen Gaoqi International Airport	25 April 2005	30 October 2005
Southeast Asia
Indonesia
Denpasar	Ngurah Rai Airport	27 January 2006		4 flights weekly
Jakarta	Soekarno-Hatta International Airport	23 October 2005		21 flights weekly
Medan	Polonia International Airport	30 March 2008		6 flights weekly
Surabaya	Juanda International Airport	23 October 2005		6 flights weekly
Singapore
Singapore	Singapore Changi Airport	5 May 2004		36 flights weekly	Main hub
Thailand
Bangkok	Bangkok International Airport	5 May 2004	November 2005
Oceania
Australia
Perth	Perth Airport	1 December 2004	9 October 2005