SIA low cost division?

Originally posted by mongu
What do you mean – that Asians don’t want lowcost as much as Londoners?

I was not refering to Asians but singaporians in the context. Look around Singapore, very few places where low costs can operated. Probably Djakarta, Bali etc.

Originally posted by KabirT
Ya but remember BA had a good market around them for loco operations and SIA doesent!

What do you mean – that Asians don’t want lowcost as much as Londoners?

Singapore Airlines sees a threat regionally in Air Asia with its continous expansion, which could damage its home market.

Ya but remember BA had a good market around them for loco operations and SIA doesent!

No, I think a low cost subsidiary could work well for SIA.

The best model is probably BA when the launched Go: by ringfencing the new airline and running it separately, they managed to achieve low costs. Go was a succesful airline and BA themselves learned a lot from their experience with it.

Silk Air is totally different. Although it is to an extent targeted at leisure travelers (eg. routes like SIN-HKT) it remains firmly within the SIA stable and is by no means “low cost”. It complements SIA well.

I don’t think SIA are reacting to a threat as such, I mean hardly any of their routes are flown against a low cost carrier. It’s more a case of expanding the market and maybe learning a few things as well, which will benefit everyone.

Either way Kabir it is not a bright idea from Singapore Airlines in my opinion. Looking at the history of low cost carriers run by major airlines, it does not some how seem to be exactly the smartest route to approach.

How much of a threat are low cost carriers to Singapore Airlines firstly? Singapore Airlines has operated in a tough market before and just now they consider low cost carriers to be a threat to their market? If anything is a threat to their own operations it is themselves, good service, well known and low prices, what would be more popular, a new start up or their own low cost carrier? It just feeds on the airlines own market more so.

I personally believe that it is a case of low costs to the airline not the passenger. Singapore Airlines is yet another victim of high costs, by setting up a low cost carrier you help consolidate these costs. Moreover, if viability was not seen in Silk Air why start up a new carrier surely it would be the same? Just shows no serious aspect to setting up a new carrier, a misinterpretation of what low cost is if you will.

Alas, alas, it is not my job to question them in such simplicity.

How about them starting that airline in Australia in the wake of Ansett’s demise, like they were talking about a little less than a year ago? Steve, any thoughts on this?

I dont think so………around Singapore there are not many destinations for low cost operations and Silk Air already operates to thise places….so a new airline wont be apropriate in my opinion.

It is probably better to start anew with a new airline for low cost operations, much more economical for Singapore Airlines. I guess it is just yet another sign of the popularity of low cost airlines a definite new market ready for an increased share of these operations being Asia. Singapore sees the potential and threat that certain airlines possess (Air Asia) and so to protect them an LCC is the right way to go about it. Just like Lufthansa and GermanWings, a highly monopolistic operation in Germany.

hmm didnt notice that…cheers!

But they will be better of converting Silk Air into a loco.

Re: SIA low cost division?

Originally posted by Saab 2000
From Skytrax
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Singapore Airlines said it may set up a new low-cost airline rather than convert its regional arm, SilkAir, into a budget carrier. Singapore Airlines said a specially-formed task force reporting to the chief executive has been working on the idea of a low-cost, no-frills airline.
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sounds like they’re not gonna kabir

They might convert Silk Air into a low-cost divison.

Seems to be the “in thing” … having a low cost arm. Me thinks that one day we will see charters and schedules services disappear, whilst low co takes over???

Cheers for the news Saab. 🙂