Scoot aims to grow new business for SIA group

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Long haul low-cost carrier (LCC) Scoot said it does not expect much duplication of routes with parent Singapore Airlines (SIA) in its initial years of operation.

While the airline has announced that its inaugural service will be from Singapore to Sydney - a route on which SIA already operates on - there is unlikely to be much more duplication, said Scoot CEO Campbell Wilson at an interview with Flightglobal Pro.

Its aim is not to compete with SIA for passengers, but to bring in new business to the group, he added.

"Our position is to grow new traffic for the group so for routes where we can bring in new market segments we can operate parallel [services]. Otherwise, we'll look at routes the group does not currently serve," said Wilson.

"By virtue of the fact that Sydney is our first destination is a clear belief that we are providing incremental business to the group," he added.

Scoot plans to serve Sydney with its 777-200s, which it will procure from SIA but have a much higher seat density.

This shows that there can be demand from two market segments on the same route, said Wilson.

Wilson reiterated that its entry will not dent SIA's business.

"Seven years ago, there were no LCCs in the market. Now, 25% of Changi Airport's throughput per year comes from LCCs. During that time, SIA hasn't shrunk. The pie has grown and the no-frills segment has grown very fast. We see the same dynamics playing in the long-haul market," he said.

Scoot expects to receive is Air Operator's Certificate (AOC) by the first quarter of 2012 and launch a daily service between Singapore and Sydney in the middle of 2012.