Scoot expanding to Hawaii, takes over some SilkAir routes

SINGAPORE, 25 July 2017: 

Singapore Airlines Ltd’s budget arm Scoot today said it would take over two routes from sister carrier SilkAir as the parent company conducts a wide-ranging strategic review designed to cut its cost base.

Singapore Airlines (SIA) has said the review, announced in May after a surprise fourth-quarter loss, could result in job losses and changes in its network and fleet as it battles intense competition that has slashed ticket prices.

SilkAir, SIA’s premium narrowbody arm, said it would transfer to Scoot its services from Singapore to Kuching and from the city-state to Palembang, Indonesia from October and November, respectively.

“There are sometimes opportunities whereby the budget side of the business can do a more effective job of serving the route,” Scoot chief executive Lee Lik Hsin said. He cited a previous shift of the Hangzhou route from SilkAir to the budget carrier.

Scoot plans to double the size of its fleet over the next five years, driven primarily by an expansion of the narrowbody A320 fleet, Lee said. He did not rule out acquiring routes from SilkAir or SIA as part of that process.

Scoot today completed its merger with budget carrier Tiger Airways, marking the end of the latter brand. Tiger was set up by SIA and Singapore’s national investment firm Temasek Holdings in 2004.

Lee said combining the two airlines under the Scoot banner would result in cost savings with suppliers and could boost connecting traffic.

In addition to the Kuching and Palembang routes, Scoot will be flying from its Singapore hub to Honolulu, Kuantan and Harbin in China by June 2018.

Coupled with the addition of the previous Tigerair network, the five new services will bring Scoot’s total destination count to 65 across 18 countries.

Honolulu is Scoot’s second long-haul destination, after Athens. That flight will be routed Singapore-Osaka-Honolulu, meaning it will compete on the Osaka-Honolulu route with rival low-cost carrier AirAsia X Bhd.

“Competition is just par for the course,” Lee said. “We just have to face it and try to win customers to our product.”

To celebrate the merger to the single Scoot brand, special one-way promotional fares are available from S$37 to Kuala Lumpur, S$49 to Bangkok, S$129 to Melbourne/Sydney, S$229 to Tokyo/Osaka, S$239 to Athens and many more. Enter the “FLYSCOOT” promotion code for an additional 10% off selected FLYBAG and FLYBAGEAT fare. Booking period from 25 to 30 July 

– Reuters

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