SIA studying starting a LCC!
Not one of the brightest ideas that has come out of SQ lately. With the history of LCCs that have been run by full service carriers, this doesn't seem to be the smartest road to go down on.
They should first examine how much they think they will lose in revenue from LCCs in the region. Then ask themselves how much it would take to set up and brand a new airline.
Why now? When for the past 20 years, they have ignored other carriers flying into SIN and charging lower fares. Now they think that an LCC would suddenly be a threat? When they have had competition from full service carriers from the past!
Would not an LCC run by SQ cannibalize their passengers more than an LCC run by someone else? Afterall, if I were a passenger, knowing that I can get cheaper fares from an SQ diffusion line, I would be more inclined to travel that LCC, rather than travel on another LCC, not knowing it's service standard or safety record.
Have they finally come to grips that their study of turning MI into a LCC would not be viable? If that is the case, how do they then expect that setting up another airline would be more viable?
Staff Moral? Shareholders? When you're in a period of cutting salaries, retrenchments, cost cuttings, they're thinking of setting up another airline? Why not use that money to further consolidate their position in the high-end, premium catagory? Afterall, they would be in the best position to gain even a bigger market share when passengers return and the market recovers!
On one hand, you're retrenching people from SQ, on the other, you're hiring for another airline! I wonder how the unions will be able to stand this.
United's staff told their management that they will support their new LCC if only their 'laid off' staff were re-hired to the new airline. Then again, can a LCC survive with the parent's company pay scales and management mentality?
SQ is losing it's focus! Who pay's the price? Staff and shareholders!