Airline News
Scoot targets China, tweaks links with Tigerair, Virgin Australia
January 20th 2015
Singapore-based low-cost carrier (LCC), Scoot, is significantly boosting its network in its key Australian market with a new interline agreement with Virgin Australia. Read More » The deal will enable Scoot to sell tickets to eight additional destinations in Australia from its existing gateways at the Gold Coast, Perth and Sydney. Scoot completes the Singapore Airlines Group’s four-pillar strategy, with Singapore Airlines (SIA) and SilkAir, respectively, tackling the long- and short-haul full-service markets, and partly-owned, Tigerair, targeting the short-haul budget market. It also interlines with Thailand’s budget carrier, Nok Air. SIA executives have repeatedly stated that closer connectivity between their low-cost units will be fundamental to improving their lacklustre financial performance.
Meanwhile, Scoot and Tigerair said they are beginning to realize the benefits from the antitrust immunity granted by Singapore’s Competition Commission in August, with the number of passengers connecting between them doubled since the deal was struck. Feed from Tigerair has helped fill Scoot’s wide-body B777 fleet (soon to be replaced and expanded with 20 B787-8 and -9 it has on order) while Scoot’s long-haul network has enabled Tigerair to offer a greater range of destinations. This year, the two carriers plan to further improve on schedule coordination and reservations systems integration, as well as achieving synergies from cooperating in ground handling, procurement and service centre operations.
Meanwhile, Scoot chief, Campbell Wilson, 44, has told the South China Morning Post that his carrier will be mainly looking at China for expansion. “Any Chinese city with a population of seven to eight million would provide enough unmet demand from first-time travellers that are price conscious, “ he said. Scoot serves Nanjing, Qingdao, Shenyang and Tianjin. Three more destinations will be added in 2015, said Wilson.
