Major Asian carrier to launch budget offshoot
Singapore Airlines plans to establish a new no-frills, low-fare airline operating widebody aircraft on medium and long-haul routes.
The new airline, SIA says, is being established following extensive review and analysis.
The decision to launch a low-cost airlines comes as Qantas works on plans to operate a subsidiary carrier out of either Singapore or Kuala Lumpur.
SIA said the new airline will “serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel”.
Operations are expected to begin within one 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 CEO Goh Choon Phong.
“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 this year by the new airline’s management team, including its branding, products and services, and route network.
Dinah
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