SIA to Set Up Long Haul LCC Subsidiary

Singapore Airlines today announced its plans to launch a new low cost long haul carrier. The new subsidiary, to be wholly owned by SIA, will be managed independently. The airline stated that “The new airline is being established following extensive review and analysis. It will enable the SIA Group to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel,”

 The new subsidiary will be based in Singapore and will begin operations within an year.
 Aircraft will be initially sourced from the parent company, but they will keep all options open. The routes on which the new carrier will operate is not clear, but will likely operate on lower yielding routes paving way for better yield for SIA.
 The new move will surely give some competition to the home-based Jetstar Asia and neighboring Malaysia’s AirAsia X.
 SIA already operates a short-haul affiliate, SilkAir. which operates Airbus A320 family aircraft.

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