Low-budget long-haul subsidiary to fight back for market share
The world’s second-biggest airline by market value, Singapore Airlines, today revealed that its new low-cost long-haul subsidiary Scoot will begin flights in mid-2012 with destinations initially including China and Australia. It will later offer flights to Europe, Africa, India and the Middle East.
Scoot is designed to fight back for market share in South-East Asia lost in recent years to low-cost carriers such as Jet Star and Air Asia X. Its CEO, Campbell Wilson, says that Scoot will be managed independently and all pilots will be hired from outside Singapore Airlines. The new carrier, whose fares will be up to 40% cheaper than full-service airlines, will operate four Boeing 777-200s bought from SIA. Singapore Airlines already owns a regional carrier, SilkAir, and has a 49% stake in Tiger Airways.
[pictured: Singapore Airlines economy]