SIA to launch new low-cost carrier
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Singapore Airlines (SIA) has announced its intention to establish a new low-cost carrier (LCC) operating wide-body aircraft on medium- and long-haul routes. According to the airline, the new carrier is being established “following extensive review and analysis” and will “enable the SIA Group to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel”.
Operations are expected to begin within one year. The airline will be wholly-owned by SIA, but will be operated independently and managed separately from the national carrier.
“We are very excited about what our new low-fare subsidiary will offer to consumers. We are seeing a new market segment being created and this will provide another growth opportunity for the SIA Group,” said SIA’s CEO, Goh Choon Phong. “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.”
Goh added; “At the same time we remain fully committed to the further growth of SIA, which will continue to offer the highest-quality products and services to our customers.”
More details about new airline’s branding, products and services, fleet and route network will be announced in due course.
The development follows an industry trend towards full-service carriers launching their own LCCs. All Nippon Airways (ANA) recently announced plans to launch a new regional low-cost subsidiary, while Thai Airways has decided to develop its own LCC, provisionally called ‘Thai Wings’. The SIA model appears slightly different however, with the focus on large aircraft flying long-haul routes. This service would appear to be in direct competition to AirAsia X – the long-haul arm of AirAsia.
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