Categorized | Airlines

Singapore Airlines to launch budget carrier Scoot…

Posted on 01 November 2011

 

Scoot CEO Campbell Wilson unveils the new low-cost carrier at a press conference in Singapore on Nov. 1, 2011.
 

Singapore Airlines will launch a new budget carrier next year that will fly long-haul routes in Asia, a growing market for low-cost air travel.

 

Named “Scoot,” the carrier will initially focus on destinations in Australia and China that are five to 10 hours from Singapore’s Changi International Airport, reports the Associated Press. It plans to buy four Boeing 777-200 jets by the end 2012, it says.

 

“This new market segment is growing fast,” Campbell Wilson, CEO of Scoot, told reporters Tuesday.

 

Scoot will offer two classes of cabin, with economy tickets up to 40% less than full-service carriers, the AP report says. Customers will be able to choose seats, meals and baggage options.

 

Scoot plans to expand its routes to include India and the Middle East and buy more Boeing 777s to fly to Europe and Africa.

 

While it’s recognized as one of the world’s best airlines and features top in-flight amenities, Singapore Airlines faces stiff competition from other well-regarded international carriers and low-cost carriers in the region that are cutting prices to attract budget-minded customers.

 

Asia’s nascent low-cost aviation market is currently dominated by Malaysia’s Air Asia, which also owns an associate company called Air Asia X that flies long-haul routes in the region, and JetStar, a unit of Qantas. Tiger Airways, a budget carrier based in Singapore, flies mostly short-haul routes.

 

“This new airline is a poor man’s excuse to fly (Singapore Airlines),” Shukor Yusof, an aviation analyst with Standard and Poor’s told AP. “It will be like luxury budget. When you’re flying 12 to 13 hours, you need to throw in some of the facilities people are used to on intercontinental flights

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