Asian air carrier Singapore Airlines is hoping to surge in the regional market with a new long- haul budget carrier called “Scoot.” According to the Associated Press, Scoot will begin operating by June of next year using four Boeing 777-200 jets.
The low cost airline will fly to destinations within five to 10 hours from its base at Singapore’s Changi International, along with four or more cities in Australia and China. Singapore Airlines Chief Executive Campbell Wilson made the announcement to reporters Tuesday.
“This new market segment is growing fast,” Wilson said. “We aim to bring new business to the SIA group.”
According to the AP, the move is important for Singapore Air as the Asian air market becomes overcrowded and Gulf carriers threaten to eat away at its market share. Previously hailed for its top-rated in-flight service for the first and business class, SIA now hopes to expand in the growing low-cost market.
The airline will face competition in the market with Air Asia X, a unit of Malaysia’s AirAsia, and JetStar of Australia’s Qantas. To gain the edge, many analysts believe Scoot will provide more travel frills for a slightly higher cost.
Indeed, Wilson told reporters that travelers who fly Scoot will be able to choose their own seats, meals and baggage options. Economy tickets will cost up to 40 percent less than full-service carriers.
