Scoot won't overlap with Tiger
When Singapore Airlines (SIA) unveiled its new low-cost carrier called Scoot yesterday, the latter's chief executive stressed that Scoot will tap into segments of the market different from those targeted by another SIA-linked firm, Tiger Airways.
Mr Campbell Wilson, a New Zealander and Singapore permanent resident who has been seconded from SIA to pioneer Scoot, said that Tiger Airways is a short-haul budget airline that flies to destinations four hours away from Singapore.
However, Scoot is a medium- to long-haul no-frills carrier, which flies to destinations five to 10 hours away. "(In) that context, there is very little...crossover with Tiger," he said.
SIA's public-affairs vice-president, Mr Nicholas Ionides, also stressed that Scoot and Tiger are "different". He clarified that "we have no plans, at this point, for any change in our Tiger Airways shareholding".
This ends months of rife speculation about SIA's plans to downsize - or end - its investment in Tiger Airways, with the launch of its new carrier. SIA is a major stakeholder in Tiger Airways, which was incorporated in 2003.
At a press meeting held at retro-bar Yello Jello yesterday, Mr Wilson symbolically "chased" Mr Ionides off the stage - a move exemplifying Scoot's desire to be seen as separate from its parent company.
While there are "contracts and expertise" that Scoot can leverage on, Mr Wilson said that the carrier is managed independently and has the"freedom and mandate to be different" from SIA.
Scoot, which will operate from Changi Airport's Terminal 2, is owned wholly by SIA.
But Mr Wilson emphasised that Scoot has no intention to be a substitute for SIA. This move was made to tap into a "new, growing market" of no-frills carriers. He said: "Our ambition is to bring incremental traffic to the SIA Group, whether it is a new route altogether, or identifying, targeting and developing a new market on existing routes.
"Taking over routes from SIA is not the intention of Scoot."
SilkAir, another carrier owned by SIA, was set up to take over SIA flights to Asian holiday destinations.
Scoot will begin its operations in June, and have four Boeing 777-200 planes in its fleet by the end of next year.
There are plans to increase the size of its fleet every year by two to three jets; and to have 14 aircraft by 2016.
Mr Wilson said that Scoot will fly to "at least four" cities in Australia and China at the start, though no specifics were stated.
It has two cabin classes promising more width and legroom - addressing gripes of tight spaces between seats on budget airlines - and its fares are up to 40 per cent lower than those at full-service providers.
Scoot also intends to purchase Boeing 777-200ER planes, which can travel up to 13 hours, to fly to farther locations such as Europe, Africa and the United States.