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#21 Pieter C.

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Posted 26 May 2011 - 07:42 PM

Singapore Airlines to launch low-fare airline

May 26, 2011

Sending a major signal to the airline industry that the competitive landscape of long-haul travel is changing, Singapore Airlines announced Wednesday it will set up a new no-frills, low-fare carrier operating twin-aisle aircraft on medium- and long-haul routes.

SIA said in a statement that “the new airline is being established following extensive review and analysis,” which was in part focused on the runaway success of AirAsia X with its fleet of A330s and A340s. It added that the new airline would “enable the SIA Group to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel.”

The new carrier has not yet been named. It is expected to begin operations within one year. It 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.

He added, “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. At the same time, we remain fully committed to the further growth of SIA, which will continue to offer the highest-quality products and services to our customers.”

Reacting to the news in Toulouse, Airbus COO-Customers John Leahy said, “I have been waiting for this to happen. It is quite a natural move. I'm a big believer in the LCC model.”

While noting that he doesn't have many details on SIA's plan, Leahy said the new carrier could operate A330s: “Have a look at Tony Fernandes at Air Asia X [an A330 operator] to see how well this operation can work. I suspect, also, [SIA's new carrier] will use the new low-cost terminal in Singapore.”.

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Will it be called Tiger Singapore and operate A330's ? :huh:

#22 Kee Hooi Yen

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Posted 26 May 2011 - 07:50 PM

Eventually they may use SQ's current "interim" A330 fleet

#23 flee

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Posted 26 May 2011 - 08:32 PM

I don't think Tiger will feature in the name. Its got a bad reputation in Australia and it may also cause brand confusion. Something like Merlion Air might be more appropriate.

As for deploying SQs ex-A333s once they receive their B789s and A359s, it may be the plan as those old B772s need to be retired sometime. SQ can simply assign the leases to the new LCC.

#24 flee

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Posted 26 May 2011 - 09:00 PM

Malaysia Will Lose Out By Holding Back Routes, Says AirAsia Chief

KUALA LUMPUR, May 26 (Bernama)-- Aviation tycoon, Datuk Seri Dr Tony Fernandes warned that with Singapore Airlines jumping into the long-haul budget carrier business, holding back routes for AirAsia X will only put the country at a disadvantage, despite Malaysia being the pioneer in the segment.

The island-state flag carrier, Singapore Airlines Ltd announced on Wednesday that it would establish a budget airline catering to cost-conscious travellers on longer-distance routes.

The new carrier will likely compete with Jetstar Airways, the low-cost unit of Australia's Qantas Airways Ltd, and AirAsiaX, the longer-haul unit of Malaysia's AirAsia Bhd, for routes beyond the reach of traditional low-cost airlines that don't fly for more than five hours.

"(So) if the government does not give the route rights, Singapore will gain advantage in building a hub because now they have a long haul (budget) airline and a short haul airline," said Fernandes, who is the Chief Executive Officer of AirAsia and founder of AirAsia X.

Hence, Malaysia Airports Holdings Bhd and the Ministry of Transport must provide the necessary support for AirAsia X to grow and not to lose out, he told reporters at the inaugural Malaysia Investor Relation Awards 2011 ceremony here Thursday.

Currently AirAsia X, the country's first long haul budget carrier is awaiting government approval for its new routes to Beijing, Shanghai, Osaka and Jeddah.

#25 KC Sim

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Posted 26 May 2011 - 09:17 PM

A series of great posts by Francis Lee (flee)! Thanks for that.

SIA's announcement has set the entire media world alight ... much like the 4 July fireworks in the US. It is amazing how SIA has managed to stun everybody - given its seemingly lethargic disposition in the last few years.

By most account, the travel and aviation industrys - along with their media counterparts - seem to see this as a bold strategic move in the right direction.

More information is likely to emerge in the very near future - I bet you we will not have to wait for a long time. It is better for SIA to keep up the momentum it has now created and release more information before any mis-information begin to cloud the picture. Keep your eyes on this thread.

KC Sim

#26 Johan Z

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Posted 26 May 2011 - 09:21 PM

What it will be called? SilkAirX or SilkAir+? MerlionAir? Singapore Wings?

#27 dean hizudy

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Posted 26 May 2011 - 10:06 PM

i bet they will adopt a simple and easy to remember name such as Delta's "Song" and ANA's "Peach".

#28 BC Tam

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Posted 26 May 2011 - 10:18 PM

Currently AirAsia X, the country's first long haul budget carrier is awaiting government approval for its new routes to Beijing, Shanghai, Osaka and Jeddah.

SYD is either in the bag already or considered a lost cause :lol:
Furthermore, is it an indication that Tianjin services to relocate to Beijing Capital ?

#29 Raymund Yeoh

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Posted 26 May 2011 - 10:30 PM

I was thinkin....."Durian Express".....haha

#30 JingKai Seah

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Posted 27 May 2011 - 10:32 AM

I was thinkin....."Durian Express".....haha


I kind liked this name hahahaha! :D

#31 Johan Z

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Posted 27 May 2011 - 10:55 AM

All in-flight meals will feature durian.

#32 Radzi

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Posted 27 May 2011 - 11:40 AM

All in-flight meals will feature durian.

That means more demand for durian..... and increase in price. Better not.

#33 Ignatius

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Posted 27 May 2011 - 12:04 PM

Simple name? Why not take the Tiger's 'ROAR' as it's name :good: ROAR :P

#34 Ashraf

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Posted 27 May 2011 - 12:48 PM

It's a no brainer the way LCC operates - keep the price low and attractive and you will take away other airlnes' market share.

Legacy airlines have no other choice if they want to retain their market share, they need to do what it takes such as setting up their own LCC to regain their lost market share.

Everybody gives credit to Tony Fernandes for the success of Air Asia. But to me, it is a module that is so simple to emulate and it was just a matter of time before the likes of SQ retaliate.

Let's see if Air Asia will be able to make the same kind of profit, 2 years from now.

#35 Johan Z

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Posted 27 May 2011 - 01:34 PM

It's not just AirAsia, SQ wants to combat EK (and other gulf carriers) offering low prices on long-haul.

#36 Waiping

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Posted 27 May 2011 - 05:10 PM

That means more demand for durian..... and increase in price. Better not.


Something that other airlines banned but allowed on this? SQ may have a lot of questions to answer.

#37 Mohd Azizul Ramli

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Posted 27 May 2011 - 07:36 PM

The first threat of this new airline has arisen. Forumers at SQ Talk are busy discussing about Business Times Singapore published an article that mentioned SQ will transfer a dozen of its B772 to this new airline. Now D7 took 4 years to build its current fleet of 11 aircrafts. This new airline will get 12 in just a snap.

#38 Rob

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Posted 27 May 2011 - 08:00 PM

i bet they will adopt a simple and easy to remember name such as Delta's "Song" and ANA's "Peach".


SingAir?

#39 Raymund Yeoh

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Posted 27 May 2011 - 09:19 PM

Here r some other potentials.....even some of them may sound corny......

i) Kallang Wings

ii) Fly Geylang

iii) Go Pratha

iv) KiaXu

#40 Johan Z

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Posted 27 May 2011 - 11:24 PM

SQ likes corny names..
Megatop,Jubilee, Mega Ark and so on.
A few suggestions:
1. Sling Air
2. Raffles Airlines
3. Kris something




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