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SIA to set up own low-cost carrier
05-26-2011, 10:59 AM
Post: #1
Quote:PETALING JAYA: Singapore Airlines (SIA) has surprised the aviation industry by announcing plans to set up a wholly-owned low-cost carrier that will ply medium and long-haul routes in a year's time.

SIA said it had intentions to set up a new no-frills low-fare airline operating wide-body aircraft which will be operated independently and managed separately from SIA.

The Singapore carrier like other premium airlines in the region is facing intense competition, including from budget carriers, and the move may be its way of positioning itself to take advantage of the growth in air passenger traffic expected in Asia in the coming years.

In a statement issued yesterday, SIA said the new airline was being established following extensive review and analysis and it would enable the SIA group to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel.

SIA is not new in the low-cost game as it already owns a third of Singapore-based budget carrier Tiger Airways. It also owns regional carrier SilkAir. Tiger mostly flies within five hours of Singapore's Changi airport while SilkAir flies to a slightly more upmarket set of regional destinations.

Analysts are saying the new airline will compete with Asia's largest low-cost carrier, AirAsia, and its long-haul low-cost sister airline, AirAsia X, besides Australia's Qantas low-cost unit, JetstarAsia.

But AirAsia's boss Datuk Seri Tony Fernandes is not surprised by SIA's move. “I am very encouraged by this and this vindicates the long-haul low-cost model (works). I am a big believer of open skies and fair competition.''

He added that “imitation is the best form of flattery and Malaysians should be very proud that AirAsia has led the world. I hope it removes the last obstacle of the Transport Ministry supporting the AirAsia X model so that we can maintain and grow our first mover advantage. AirAsia X should be offered all routes so that Malaysia does not lose out again.''

To him SIA's setting up of a new unit is no challenge to AirAsia or AirAsia X, which operates flights spanning Tokyo to New Dehli and onto London.

“We have been competing with airlines all our lives, they (SIA) may find it a challenge. Obviously they are threatened by AirAsia and AAX that they had to respond. So I think their response is going to be a difficult one for them to accomplish,'' Fernandes said.

SIA CEO Goh Choon Phong said: “We are very excited about what our new low-fare subsidiary will offer to consumers. We are seeing a new market segment being created and this will provide another growth opportunity for the group. As we have observed on short-haul routes within Asia, low-fare airlines help stimulate demand for travel, and we expect this will also prove true for longer flights.”

Details on the new airline's management team, including its branding, products and services, and route network would be announced later, SIA said.

Flightglobal reported that the aircraft for the flight operations would initially be sourced from the parent carrier, which has 20 Boeing 787-9s and 20 Airbus A350-900s on order. A SIA's spokesman said that subsequently, “all options are open on aircraft sourcing.”

There could be routes on which both the parent airline and the new subsidiary could operate on, although this would be decided by the management team, he added.

Source : http://biz.thestar.com.my/news/story.asp...c=business

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06-07-2011, 10:35 PM
Post: #2
This means more job opportunity.

Fly to live,Live to fly.
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06-13-2011, 03:55 PM
Post: #3
SQ's LCC is surely going to be the next big thing. They've got the cash, expertise, reputation and what not.

Winglet Rider \_ _/
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08-09-2011, 02:28 PM
Post: #4
Flying the B787-900 somemore..
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08-09-2011, 07:24 PM
Post: #5
Good for us the consumers? :><:

Real planes have propellers!
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11-01-2011, 06:34 PM
Post: #6
Quote:Singapore Airlines (SIA) has confirmed its wholly-owned low-cost medium-long-haul carrier will be named "Scoot" and operate Boeing 777-200s in a two-class configuration with economy seating 3-4-3, as CAPA reported in September. Scoot is preparing to launch services around mid-2012 on medium and long-haul routes from its Singapore base. It plans to pursue a relatively high growth in its first four years, with its fleet slated to reach 16 aircraft in mid-2016.

“We chose the name ‘Scoot’ for many reasons, not least because it‘s different. Rather than the tried and tired 'airlines' this, 'airways' that or 'air' yawn, it’s short, sharp and snappy. It stands out. It’s geographically independent, and can be a verb or a noun. Besides difference, it conveys spontaneity, movement, informality and a touch of quirkiness—all attributes we intend this Company to be known for,” said Scoot CEO Campbell Wilson in a statement.

Scoot was trademarked earlier this year by New Aviation, the working name of the airline. Mr Wilson is a 15-year veteran of SIA.

"The light, bright logo conveys warmth, energy and informality, while the tilted 't' of the name Scoot hints that this airline is not cut from the same conformist mould of others," Scoot said in a statement. "The aircraft livery, with its waves and colour, likewise gives a sense of motion, happiness, lightheartedness and youth, reflecting a casual, leisure-oriented vibe that should capture and enhance the mood of those travelling."

Mr Campbell added: “These attributes will be personified in a unique spirit that encapsulates our values and style, and that should be apparent to guests whenever they interact with us. An airline with a different attitude. People with a different attitude. Scootitude.”

The branding was created by Singapore agency Sparkfury and sister agency Tangoshark.

Scoot says the public will be invited to make a tagline for the carrier.

Engineering retrofit and certification of Scoot's first B777-200, a former Singapore Airlines aircraft, is scheduled for April-June-2012. Ticket sales will commence next year on initial routes to Asia and Australasia. Scoot is targeting routes over four hours and expects to eventually also serve points in Europe - including the UK - and the Middle East. Only Southeast Asia is ruled out as flights to points in that region are under four hours.

Scoot had been interested in wireless streaming in-flight entertainment, in-flight connectivity and pay-as-you-go power supply, as we reported in September. But Scott says no decision on those features have been made. "Specific seats, cabin features and offerings are currently being evaluated."

Scoot will operate from Singapore Changi's terminal two, as opposed to the low-cost carrier terminal, which would be stretched to accommodate B777s.

source : http://www.centreforaviation.com/blogs/a...coot-61766

~ smile cause i have no idea whats going on ~
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