Low-cost carrier Scoot aims to double fleet size in five years

by Dramelin 5:00 AM 0 comments

Budget airline Scoot has vowed to be "aggressive" with its growth ambitions, unveiling five new destinations and a plan to double its fleet, following an official merger with Tigerair.
Just months after announcing their intentions to pursue a tie-up under the single Scoot brand, the two Singapore Airlines-backed low-cost carriers are becoming one under a single operating license.
"The two companies were brought under a single holding company last year in May, and within the short span of just a little over a year, we`ve managed to achieve full integration into a single airline," Scoot CEO Lee Lik Hsin told CNBC`s "Capital Connection.
" The new Scoot plans to expand its network by adding five new destinations by June 2018.
Among them are Honolulu, Scoot`s maiden U.
destination, and Harbin in northeast China.
Scoot will also take over two routes from sister carrier SilkAir for Malaysia and Indonesia, as parent Singapore Airlines undertakes a wide-ranging review to slash costs and improve efficiency after announcing a fourth-quarter loss.
"I think the merger is a baseline platform that allows us to be in the space and to be a significant player in the space.
Previously, both airlines were sort of small-to-medium size.
Now we have the ability to scale up very dramatically," said Lee.
The group has been working to integrate reservation systems, flight schedules and connections as part of the efficiency drive.
It`s also rationalizing its conditions of carriage, check-in counters and call centers to save costs.
"The completion of the merger unlocks synergies, reduces unit costs and enables the group to optimize aircraft resources," said Brendan Sobie, chief analyst at CAPA - Centre for Aviation.
"The SIA Group is now better positioned to compete and expand in the bottom end of the market," he added.