SIA to set up new no-frills airline

SIA to set up new no-frills airline

Singapore Airlines has announced its intention to establish a new no-frills, low-fare airline which will operate wide-body aircraft on medium and long-haul routes.

It said the new airline is being established following extensive review and analysis.

SIA joins a growing number of low-cost carriers, such as Singapore-based Jetstar Asia and Malaysia's AirAsia, in introducing low-fare flights to medium and long-haul routes.

Such routes are typically to destinations further than five hours' flight from Singapore.

SIA said it will enable the group to 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.

SIA CEO Goh Choon Phong said there is a new market segment being created and this will provide another growth opportunity for the group.

He said: "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."

No further details were given as to whether the group plans to purchase new aircraft or use the existing ones in its fleet.

A new management team is expected to be set up for the new airline.

More details will be announced by the management team in due course, including its branding, products and services, and route network.

~News courtesy of Channel Newsasia~