Singapore Airlines (SIA) has announced its intention to establish a new no-frills, low-fare airline operating widebody aircraft on medium-haul and long-haul routes.
No name has yet been given for the new long-haul, low-cost carrier, but Singapore Airlines says it is establishing the new airline following extensive review and analysis.
SIA also has not indicated what aircraft type the new carrier will operate, but other low-cost, long-haul carriers in the Asia Pacific region – such as Air Asia X, Jetstar Airways and Strategic Airlines – all operate Airbus A330-200s or A330-300s, as does European equivalent Air Berlin. SIA is operating 19 recently delivered A330-300s on lease, which will gradually be replaced by Boeing 787-9s as the airline begins taking delivery of them.
The new carrier’s parent company does say that the venture will enable the SIA Group to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel.
Singapore Airlines operates 19 late-model Airbus A330-300s on lease. These aircraft will gradually be replaced by Boeing 787-9s as SIA takes delivery of them
Singapore Airlines expects its new low-fare subsidiary to begin operating within a year. The airline will be wholly owned by Singapore Airlines, but will be operated independently and managed separately from SIA.
“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 Goh Choon Phong, SIA’s CEO. “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.”
Adds Goh: “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.”
SIA Group says more details will be announced by the new airline’s management team in due course, including its branding, products and services, and route network.
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Related to this story:
- Air Astana to Boost Long-Haul Frequencies and Launch Almaty-Hong Kong Route
- Air Pacific Orders Three Airbus A330-200s to Renew and Grow Long-Haul Fleet
- SIA’s New Low-Fare, Long-Haul Unit Chooses 777-200 as Initial Fleet Type
- Etihad to Install Onboard Health Monitor System on Long-Haul Fleet
- Finnair Introduces Lie-Flat Business Class Seats on Long-Haul Flights
