SIA to set up wholly-owned low-cost carrier
Join Date: Mar 2011
Location: Singapore
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
Well you do not have enough proof to validate your comments buddy. But if you'd read the news recently, about 2 months ago, pilots from your country went to the extent to fake atpl license as well as logging wrong entries into pilot logbook. Moreover, can't believe that a captain did a RTO from the sound of apples dropping of from the cockpit as well as landing on the nose landing gear first! We are obedient in a way that we don't do major strikes and cancel hundreds of flights and disrupting the aviation industry! Moreover, don't you know a topic called Crew resource management?? Pilots all around the world go through this training so as to not say 'yes captain'! for everything. Don't you think the airline interviews will ask you about these things before being selected? So yea, I'm not saying that they are the worst but neither they are the best! Mind your words by saying ALL Singaporeans! We are creating jobs for people around the world including your country. Appreciate that! I would also like to point out that there is no concrete proof that SIA is recruiting cadet pilots from india so that they can fly for the subsidiary budget carrier, they may be into the main SQ fleet.
This could be a goer on non premium routes, with SQ getting a high percentage of its profits from the front cabins they wouldn't make money on SIN - CNS or SIN - OOL. A B777/A330 all economy with a tighter seat pitch, run as a low cost model could be profitable.
With the growing markets of China, India and SE Asia readily accessible via Singapore it could give a welcome boost to the Australian tourist industry.
Possibly the less premium routes such as BNE and ADL could be served with a two class operation along the lines of Jetstar A330 StarClass.
4-5 hours is long enough in a narrow body, but 7-8 hours is alright in a wide body.
SIN to London could also be considered using a secondary airport such as Stansted, which feeds into the Ryanair network.
Supermarkets typically sell a home brand economy, home brand premium and regular brand version of most products in order to cover the market. Airlines seem to be doing the same, look at the three different fare options presented on the Virgin/J* websites.
Jetstarisation of Singapore Airlines perhaps ?
With the growing markets of China, India and SE Asia readily accessible via Singapore it could give a welcome boost to the Australian tourist industry.
Possibly the less premium routes such as BNE and ADL could be served with a two class operation along the lines of Jetstar A330 StarClass.
4-5 hours is long enough in a narrow body, but 7-8 hours is alright in a wide body.
SIN to London could also be considered using a secondary airport such as Stansted, which feeds into the Ryanair network.
Supermarkets typically sell a home brand economy, home brand premium and regular brand version of most products in order to cover the market. Airlines seem to be doing the same, look at the three different fare options presented on the Virgin/J* websites.
Jetstarisation of Singapore Airlines perhaps ?
Join Date: Nov 2003
Location: scotland
Posts: 22
Likes: 0
Received 0 Likes
on
0 Posts
Singstar ?
They are calling it singstar and it will be mixture of 777 and 330 . It should be up and running within the next 12 months.Will give jetstar and tiger,Air Asia a run for their money.
Join Date: Jun 2003
Location: Belgium
Posts: 81
Likes: 0
Received 0 Likes
on
0 Posts
Interesting thread. SIA should avoid mixing of brands. But can they generate enough traffic to Singapore alone?
So, I think they will offer extra long haul, with very good connections in SIN.
West to East : Hamburg, Berlin, Brussels, Leningrad,Madrid / SIN / Gold Coast, Macau, Honolulu.
A connection with mainline will neccessarily be a separate ticket. Even exisiting
destinations might be served (London, but then Stansted), as long as the brand
remains unspoilt.
We will see soon enough...
So, I think they will offer extra long haul, with very good connections in SIN.
West to East : Hamburg, Berlin, Brussels, Leningrad,Madrid / SIN / Gold Coast, Macau, Honolulu.
A connection with mainline will neccessarily be a separate ticket. Even exisiting
destinations might be served (London, but then Stansted), as long as the brand
remains unspoilt.
We will see soon enough...
Airasia X Singapore?
Just a thought:
Wholly owned by SQ, managed AirasiaX people (or whatever TF's team of people), what's the possiblility?
Malaysia has limited room for growth for long haul LCC as compare to Singapore. All this new LCC needs is to pinch a bit from every airline operate through Changi. The lowest end market will make it a viable business. Recently, TF sold a sizable share of Airasia and moving its HQ to Jarkarta. What is he telling? Perhaps, a protest to the government regarding its permission to let Firefly take on Airasia?
At this stage SQ is saying wholly own. Nothing can stop them from accepting AirasiaX investment. Then you'll have Airasia X Singapore.
Wholly owned by SQ, managed AirasiaX people (or whatever TF's team of people), what's the possiblility?
Malaysia has limited room for growth for long haul LCC as compare to Singapore. All this new LCC needs is to pinch a bit from every airline operate through Changi. The lowest end market will make it a viable business. Recently, TF sold a sizable share of Airasia and moving its HQ to Jarkarta. What is he telling? Perhaps, a protest to the government regarding its permission to let Firefly take on Airasia?
At this stage SQ is saying wholly own. Nothing can stop them from accepting AirasiaX investment. Then you'll have Airasia X Singapore.
Join Date: Jan 2011
Location: In a bunk at 40,000 ft
Posts: 85
Likes: 0
Received 0 Likes
on
0 Posts
Very good for the market!
Here's something I just read.
Very interesting indeed....
"With the Indian skies now being skewed towards the Low Cost Carriers (LCC) market, the announcement of a new entrant is simply going to fragment this market further and increase competition, thereby lowering fares, improving quality and making it even more difficult to manage bottom-lines. But even in this scenario, the Indian travel trade has by and large given the thumbs up to the proposed new LCC from Singapore Airlines (SIA). This global aviation giant will be the next to tap the Indian market as SIA has recently announced plans to foray into the LCC segment, catering to Asian countries.
According to a news release, SIA plans to unveil a new low-cost airline that operates wide-body aircraft on medium and long-haul routes. The proposed airline will be unveiled within a year’s time. While owned completely by Singapore Airlines, the new airline will be operated and managed independently from SIA. Although the airline has not yet announced the brand name under which the airline will be operational, SIA is under process to appoint a new management team in Singapore to spearhead the airline’s operations.
Goh Choon Phong, Chief Executive Officer, Singapore International Airlines, informed, “We are seeing a new market segment being created and this will provide another growth opportunity for the SIA Group. As 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.”
The country already hosts around seven LCCs besides several international LCCs such as AirAsia and Air Arabia catering to the Indian mid-end segment and creating intense competition in the Indian market. Meanwhile, SIA’s announcement has received encouragement from the Indian travel trade as top officials see it as a welcoming move.
Commenting on the ongoing trend and competition in the LCC segment, Vipul Saxena, an independent aviation analyst stated, “SIA, to my knowledge has catered to the Indian aviation market in a good manner with their on-time services from around six cities in India. The airline intensified the competition in India by announcing their regional subsidiary, Silk Air, and sustaining the same momentum. SIA will further heat up the competition with this announcement. I expect the carrier to gain around seven to eight per cent of the market share in India within one year of its launch, and it won’t take more than six to eight months to establish and run operations smoothly. The launch will bring intense competition in the LCC segment making other carriers lower their ticket prices. In India, the LCC segment is expected to grow by 35-40 per cent year on year.”
While speaking of the prospects of SIA’s low-cost airline in the Indian market, Rajji Rai, President – Travel Agents Association of India (TAAI) said, “SIA’s low-cost model will be definitely successful if they launch in the Indian market and we, the agents would like to encourage SIA because the benefit of low-cost airlines always goes to the consumers. Anything benefiting consumers, will be a benefit to travel agents. Previously, when the low-cost airline concept was brought up by Deccan Airways in India, travel agents thought low-cost airline ccould not capture any markets, but their success has been notable. Spicejet and Indigo are prime examples in this category. Likewise, international low-cost carriers such as Air Asia have been remarkably successful.
P Sampath Kumar, National General Secretary, TAFI said, “The prospects of SIA’s low-cost airline or any other low-cost airlines launching in the Indian market seem good as India is developing into a huge source market for international airlines, although the success of these carriers depends on where and which category of clients they plan to serve.” He further explained that low-cost airlines and full-service carriers have completely different client segments to cater to. He further added “As per the travel agent’s side, we will first target full-service carriers and later low cost airlines.”
Biji Eapen, National President – IATA Agents Association of India (IAAI) said, “IAAI will demand commission from all airlines operating under the Indian sky be it low-cost or full-service carries.” He further alleged that international low cost carriers do not provide appropriate service to long haul travellers. “Sometimes business crowds have to choose full-service carriers for long-haul journeys. Both concepts have different clientele.”
“If you look at the Low Cost Carrier (LCC) market in India, the segment is growing at a good rate with more than seven Indian companies offering low-cost services. As far as international LCCs operating in the Indian market are concerned, no profits are being made from their India operations. Further, the airlines don’t provide a commission to travel agents, due to which travel agents in India have totally abandoned the airline and therefore, it is hard to book AirAsia tickets through travel operators. Considering such issues and the fact that SIA has strong foothold in India, it can be said that the low-fare services offered by SIA will be welcomed by a price sensitive market like ours. Considering the pricing factor and building a better strategy for the India region will help SIA launch new low-fare services in India,” opined Pradip Lulla, President, TAFI."
Very interesting indeed....
"With the Indian skies now being skewed towards the Low Cost Carriers (LCC) market, the announcement of a new entrant is simply going to fragment this market further and increase competition, thereby lowering fares, improving quality and making it even more difficult to manage bottom-lines. But even in this scenario, the Indian travel trade has by and large given the thumbs up to the proposed new LCC from Singapore Airlines (SIA). This global aviation giant will be the next to tap the Indian market as SIA has recently announced plans to foray into the LCC segment, catering to Asian countries.
According to a news release, SIA plans to unveil a new low-cost airline that operates wide-body aircraft on medium and long-haul routes. The proposed airline will be unveiled within a year’s time. While owned completely by Singapore Airlines, the new airline will be operated and managed independently from SIA. Although the airline has not yet announced the brand name under which the airline will be operational, SIA is under process to appoint a new management team in Singapore to spearhead the airline’s operations.
Goh Choon Phong, Chief Executive Officer, Singapore International Airlines, informed, “We are seeing a new market segment being created and this will provide another growth opportunity for the SIA Group. As 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.”
The country already hosts around seven LCCs besides several international LCCs such as AirAsia and Air Arabia catering to the Indian mid-end segment and creating intense competition in the Indian market. Meanwhile, SIA’s announcement has received encouragement from the Indian travel trade as top officials see it as a welcoming move.
Commenting on the ongoing trend and competition in the LCC segment, Vipul Saxena, an independent aviation analyst stated, “SIA, to my knowledge has catered to the Indian aviation market in a good manner with their on-time services from around six cities in India. The airline intensified the competition in India by announcing their regional subsidiary, Silk Air, and sustaining the same momentum. SIA will further heat up the competition with this announcement. I expect the carrier to gain around seven to eight per cent of the market share in India within one year of its launch, and it won’t take more than six to eight months to establish and run operations smoothly. The launch will bring intense competition in the LCC segment making other carriers lower their ticket prices. In India, the LCC segment is expected to grow by 35-40 per cent year on year.”
While speaking of the prospects of SIA’s low-cost airline in the Indian market, Rajji Rai, President – Travel Agents Association of India (TAAI) said, “SIA’s low-cost model will be definitely successful if they launch in the Indian market and we, the agents would like to encourage SIA because the benefit of low-cost airlines always goes to the consumers. Anything benefiting consumers, will be a benefit to travel agents. Previously, when the low-cost airline concept was brought up by Deccan Airways in India, travel agents thought low-cost airline ccould not capture any markets, but their success has been notable. Spicejet and Indigo are prime examples in this category. Likewise, international low-cost carriers such as Air Asia have been remarkably successful.
P Sampath Kumar, National General Secretary, TAFI said, “The prospects of SIA’s low-cost airline or any other low-cost airlines launching in the Indian market seem good as India is developing into a huge source market for international airlines, although the success of these carriers depends on where and which category of clients they plan to serve.” He further explained that low-cost airlines and full-service carriers have completely different client segments to cater to. He further added “As per the travel agent’s side, we will first target full-service carriers and later low cost airlines.”
Biji Eapen, National President – IATA Agents Association of India (IAAI) said, “IAAI will demand commission from all airlines operating under the Indian sky be it low-cost or full-service carries.” He further alleged that international low cost carriers do not provide appropriate service to long haul travellers. “Sometimes business crowds have to choose full-service carriers for long-haul journeys. Both concepts have different clientele.”
“If you look at the Low Cost Carrier (LCC) market in India, the segment is growing at a good rate with more than seven Indian companies offering low-cost services. As far as international LCCs operating in the Indian market are concerned, no profits are being made from their India operations. Further, the airlines don’t provide a commission to travel agents, due to which travel agents in India have totally abandoned the airline and therefore, it is hard to book AirAsia tickets through travel operators. Considering such issues and the fact that SIA has strong foothold in India, it can be said that the low-fare services offered by SIA will be welcomed by a price sensitive market like ours. Considering the pricing factor and building a better strategy for the India region will help SIA launch new low-fare services in India,” opined Pradip Lulla, President, TAFI."
