Singapore Airlines announces low-cost carrier

Singapore Airlines has announced its intention to establish a no-frills, low-cost subsidiary airline for medium and long-haul routes, to begin operations within a year.

According to SIA, the new airline, yet to be named, will enable the carrier “to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel.” The carrier will be operated and managed separately, though wholly owned by SIA.

Goh Choon Phong, chief executive of Singapore Airlines, said: “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 of the new airline’s network and services will be revealed in due course and it is unclear at this stage just how “no frills” the low-cost subsidiary will be.

Another Asian full-service carrier planning to launch a low-cost carrier is Thai Airways, which announced last year a joint venture partnership with Tiger Airways to establish Thai Tiger (see story here) and has now decided to establish their own regional subsidiary as well.

According to Thai’s recent board meeting results, Thai is in the process of establishing a “Thai regional airlines under the Thai sub-brand, becoming a new business unit.” The airline will be a “full-service airline, with customers continuing to receive the same benefits such as baggage weight allowance and mileage accrual as they do on Thai.” Thai Airways also owns 39 percent of another low-cost carrier, Nok Air. 

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Alisha Haridasani

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  • I’m not convinced if this would works. AirAsia X, the long haul LCC from AirAsia, only operates to 15 out of 32 destinations that they’ve applied for. Despite AirAsiaX CEO plead to gain more destination approvals (of which the destination also served by competitor already).

    Seeing how SQ regional (SQ + Silkair) destinations are prevented to be served by Tiger (LCC that is owned by SQ), I’m in doubt that this new long haul LCC will be allowed to operate to the same routes/destinations that SQ parent company flies to. If they want to untap few destinations only; why the hassle to create new airline; would it be more efficient to give it to Silkair or maybe call it SQ saver which feature all-economy class (btw, SQ37 SIN-LAX flight that features all-business class seat does not necessarily operated by separate airline either)

  • 777 wide body with 40% saving price tag? I don’t think so.

    But look forward to see the healthy competition going between those major player.

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