Singapore Airlines’ low cost operation Scoot takes off in 2012
02 Nov 2011
Singapore International Airlines (SIA) has said its low cost operation , Scoot, will commence operations sometime mid-2012 and will operate with a fleet of four Boeing 777-200 planes by the end of that year. Scoot is SIA's attempt to stop erosion of its market share at the hands of rival low-cost operators.
The new airline, with fares as much as 40% cheaper than full-service carriers, will initially fly to destinations in Australia and China and add locations in India, Europe and other markets, including Africa and the Middle East, with additions to its fleet.
"No destination is ruled out. Our aim is to develop new routes and hopefully we will do that," Campbell Wilson, Scoot's chief executive, said Tuesday at a news conference in Singapore.
The new carrier is expected to have a fleet of about 40 planes by the end of the decade.
"We are not a substitute to Singapore Airlines. The aim is to bring incremental business to the SIA Group," Wilson said.
Budget airlines such as Australia's Jetstar and Malaysia's AirAsia Bhd., have been eating into market share of many full-service carriers because of cheaper fares, forcing the latter to explore low-cost models.
The SIA is replicating moves made by other legacy carriers. Japan's All Nippon Airways Co recently announced a joint venture with AirAsia, and Thai Airways International plans to launch Thai Smile.
The airline will get a kick-start with its first aircraft supplied by parent Singapore Airlines.