In the face of increasing competition and declining traffic and market share for its full-service carriers, Singapore Airlines and Silk Air, the SIA Group sees its new long-haul, low cost carrier, announced on 25 May 2011, as its best opportunity for growth. Plans call for the, as yet unnamed, airline to be operational within 12 months. The start-up will operate separately of Singapore Airlines and be independently managed, but there are good prospects for synergies between the two carriers. The SIA Group studied the success of AirAsiaX very closely, and seems likely to follow the Malaysian long haul LCC by offering two classes of seating, thereby enabling interlining with Singapore Airlines. The new carrier could also be used to develop new routes for Singapore Airlines or substitute for its sister company on routes less well suited to the SIA's full-service product offering. Airbus COO John Leahy was reported to be upbeat about the SIA Group announcement and the prospects it brings of an order for new Airbus A330s, although some of Singapore Airlines standard model Boeing 777s are also likely to be tansferred.
nouncement, and the
propects that the new LCC will select the A330 for its new fleet.
Fri, May 27 2011 4:10 PM
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