Orange Star

Orange Star emerged from the planned combination of Jetstar Asia and Valuair, two low-cost airlines operating from Singapore. The companies announced the creation of the holding company on 24 July 2005, during a period when Southeast Asian budget airlines were facing strong competitive pressure. Aggressive fare competition and rising aviation-fuel costs made scale, cost control, and network coordination increasingly important strategic objectives. The proposed structure placed the two constituent carriers under a common corporate vehicle rather than presenting Orange Star primarily as a new stand-alone airline. Both airlines were based at Singapore Changi Airport, which was also identified as Orange Star's base. The arrangement was expected to support closer coordination while preserving the operating identities of the constituent carriers during the transition. Management appointments emphasized the connection with Jetstar Asia and Qantas. Chong Phit Lian, the chief executive of Jetstar Asia, became Orange Star's chief executive. Geoff Dixon, then chief executive of Qantas, was slated to chair a nine-member board. Qantas's involvement reflected its broader interest in developing a low-cost airline presence in the Asian market. The transaction also involved the integration of different airline technology environments. Jetstar Asia used Navitaire for its reservations system, whereas Valuair used Sabre. Reconciling those platforms was a practical issue for the proposed combination and illustrates that the venture involved more than a simple change in ownership. Reported investors included Qantas, Temasek Holdings, shareholders associated with Jetstar Asia and Valuair, Asiatravel.com, and Star Cruises. Qantas was reported to have invested approximately A$30 million, or roughly US$18 million in the contemporary account, in exchange for a 44.5 percent stake. The available reference material does not provide a subsequent account of Orange Star's operations, rebranding, dissolution, or final ownership structure. Its current status therefore cannot be confirmed from the supplied sources.

• 2005

  Orange Star is formed

  [1]Orange Staren.wikipedia.org

  On 24 July 2005, Jetstar Asia and Valuair announced the creation of Orange Star as a holding company for their proposed combination.

• 2005

  Management and board structure announced

  [1]Orange Staren.wikipedia.org

  Jetstar Asia chief executive Chong Phit Lian was named Orange Star's chief executive, while Qantas chief executive Geoff Dixon was slated to chair a nine-member board.

• 2005

  Qantas investment reported

  [1]Orange Staren.wikipedia.org

  Qantas was reported to have invested about A$30 million and to have received a 44.5 percent interest in the new venture.

A Singapore-based airline holding and consolidation vehicle intended to combine Jetstar Asia and Valuair in response to low-cost-carrier competition, fare pressure, and rising fuel costs.

• 2005

  Combine Jetstar Asia and Valuair under Orange StarM&A

  Background

  The proposed combination was announced amid competition from other low-cost carriers, fare wars, and rising fuel costs. The two airlines also used different reservation platforms.

  Action taken

  Jetstar Asia and Valuair announced Orange Star as a common holding company, with a planned nine-member board and shared corporate oversight.

  Aftermath

  The supplied reference material does not document the later outcome of the structure, including whether the transaction was completed, revised, or discontinued.

  Reported Qantas investment and proposed equity stake. Approximately A$30 million investment for a reported 44.5% stake (2005)

  Source

1. 1Orange Staren.wikipedia.org