The world's largest low-cost airline alliance has just been formed.

Eight low-cost airlines in Asia have announced an alliance to create the world's largest low-cost carrier, aiming to maximize the customer base they have built together, according to Japan's Nikkei newspaper.

TigerAir is also a member of the Alliance - Photo: AP.

The eight airlines include: Scoot & Tiger Air (owned by Singapore Airlines), Nok Air (owned by Thai Airways), NokScoot (a joint venture between Nok Air and Scoot), Cebu Pacific Air (owned by Cebu Air, the largest airline in the Philippines), Tiger Air Australia (owned by Virgin Australia Holdings), Vanilla Air (owned by ANA Holdings - Japan), and Jeju Air (South Korea).

The new airline, Value Alliance, is headquartered in Singapore. Passengers will be able to book tickets with any airline through a single website. The airlines aim to attract customers flying on multiple routes within the same system.

"The new airline alliance will offer customers more choices than any other low-cost airline in the world," Value Alliance CEO Campbell Wilson declared at the airline's launch yesterday.

Following the merger, the new airline owns 176 aircraft, connecting 160 destinations, equivalent to one-third of the destinations in the international air network. The member airlines transported 47 million passengers in 2015.

However, according to many aviation experts, the biggest challenge for airlines in the new alliance is how to maintain operations without increasing costs, which would lead to higher ticket prices for customers.

Although airlines have formed an alliance for their booking systems, many other systems, such as baggage check-in infrastructure, are not automatically connected unless there is a specific agreement, which can cause considerable difficulties for customers.

According to Vneconomy