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Singapore Airlines to establish new low cost carrier

Bapun Raz

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Singapore Airlines (SIA) recently announced its plans to establish a new no-frills, low-fare airline operating widebody aircraft on medium and long-haul routes. The new airline is being established following extensive review and analysis. Operations are expected to begin within a year. The airline will be wholly owned by Singapore Airlines, but will be operated independently and managed separately from SIA.

Goh Choon Phong, CEO, SIA said, “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. 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.”

More details will be announced later by the new airline’s management team in due course, including its branding, products and services, and route network.

Singapore Airlines started operations to India in 1970, with the launch of services to Chennai. It currently operates 48 weekly flights to Singapore from six cities in India. Singapore Airlines’ regional subsidiary, SilkAir, currently operates 30 weekly flights from 6 cities in India.

http://www.travelbizmonitor.com/singapore-airlines-to-establish-new-low-cost-carrier-13514