Singapore Airlines to Launch Low Cost Airline

Singapore Airlines is planning to establish a new no-frills, low cost airline operating widebody aircraft on medium and long-haul routes.

The new airline will enable the SIA Group to compete against the growing number of profitable low cost airlines in the region, and cater to the growing demand among consumers for low cost travel.

Operations are expected to begin within one year. The airline 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 SIA CEO Mr Goh Choon Phong. “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.”

“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,” added Mr Goh.

Details of the new airline’s management team, branding, services and route network have not yet been unveiled.

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