Monday, November 7, 2011

Singapore Airlines Ultimately Finds the Way to Scoot Around

Singapore Airlines has added yet another laurel to its flagship brand by launching a new long-haul budget carrier, Scoot. The airline has joined the bandwagon of Asia's growing no-frills air travel to lure budget travellers.

Singapore Airlines has launched a new long-haul budget carrier, Scoot. On Tuesday, the newly launched airline’s CEO Campbell Wilson put across information that ‘Scoot’ will start operating its flights by June 2012. Additionally he informed reporters that the airline contrives to operate four Boeing 777-200 jets by the end of next year.

As per the online sources, the airline plans to start serving destinations as far as five to ten hours from Singapore, the operational base for Scoot. To begin with, the airline may start flights to four or more cities in China and Australia.

Campbell Wilson said, “This new market segment is growing fast”. He hopes to tap on the emerging market. “We aim to bring new business to the SIA group.” he said.

Singapore Airlines has been long relying on its top-notch onboard services to lead the long-haul first and business class market in the Asia to Europe routes and now the carrier has finally decided to plunge in the developing no-frills air travel market.

However, Singapore Airlines is likely to be rivalled by Air Asia X, under the flagship of Malaysia's AirAsia and JetStar, a unit of Qantas in the region's long-haul budget market. Online sources report analysts of believing that Scoot might introduce extra frills to outperform the opposition.

Scoot Strategies

Campbell Wilson said that Scoot will offer two cabin classes, with economy tickets approximately 40 percent cheaper than air tickets offered by other premium carriers. Additionally, customers will be able to put forth their preference for seats, meals and baggage options.

"We'll offer many other options so people can customize their experience," Wilson said.

Acquiring several Boeing 777-200ER aircraft, which can make a journey of up to 13 hours, is primary on the list of Scoot’s plan in order to start offering cheap flights to European and African destinations. Additionally, the airline plans to hire about 52 pilots, 250 flight attendants and 40 ground staff sometime next year.

Industry Outlook

It has been reported that Singapore Airlines spent approximately 283 million SGD to kick-start Scoot. While this wholly owned subsidiary is the latest addition under the well-regarded flagship brand of Singapore Airlines, SilkAir, a mid-cost regional carrier for popular Asian destinations, is already being operated by the group. SIA also possesses one third stakes of Tiger Airways, a budget carrier that offers cheap tickets.

As per online sources, Shukor Yusof, an aviation analyst with Standard and Poor’s informed that Scoot has joined this bandwagon to bring home the bacon from the lucrative low cost airline market. He further added that budget and cheap flights perked up Changi Airport’s traffic by approximately 25 percent this year.

"Budget airlines are not a fad. They're here to stay. The market certainly has shifted from legacy carriers to discount carriers," he was quoted.

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