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Scoot to source A320s instead of 737s
April 12th 2019
Single narrowbody a possibility again after suspending plans to take SilkAir 737-800s. Read More »
External factors could bring needed efficiency to Scoot. The Singapore Airlines LCC had only A320 family aircraft in its narrowbody fleet but was due to take 737-800s from sister SilkAir as part of a group re-alignment. That would have given Scoot two narrowbody fleets, bloating costs. Scoot will no longer take SilkAir 737-800s, prompted by the grounding of the 737 MAX. The -800s earmarked for Scoot will instead remain with SilkAir until SIA has clarity of the 737 MAX grounding.
Scoot is understood to be seeking additional A320s to cover the routes SilkAir will still transfer to Scoot. SIA confirmed to Orient Aviation that Scoot is looking for more aircraft but would not specify the type, number or duration. The process to induct additional aircraft, and typical lease periods, suggests these aircraft will not be with Scoot for only a temporary period. “Scoot is considering to add aircraft capacity from the market to take on the new routes, and we have no further details to share at this point,” a spokesperson said.
Further suggesting this is not an interim measure, SIA confirms the pilots Scoot recruited for the 737 fleet will instead “be re-trained and re-deployed within Scoot’s fleets”. Scoot also operates 787s.
The initial decision to place 737-800s with Scoot was the result of a strategic re-direction at the group level. This was prompted by transferfering routes from SilkAir to Scoot that would achieve better returns on a lower cost platform. At the same time, the group needed a solution to SilkAir over-ordering 737s. That purchase was driven by a vision for a larger full-service short-haul presence than what the market has come to dictate.
Scoot taking 737s provided a solution for SilkAir and also gave Scoot the lift to fly the routes it was handed over. However there was concern of significant cost base expansion from having two over-lapping narrowbody fleets.
