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Singapore Airlines shifts routes to budget arm Scoot amid strategic review

25 Jul 2017 15:52:22

reuters.com

Singapore Airlines Ltd's (SIAL.SI) budget arm Scoot on Tuesday said it would take over two routes from sister carrier SilkAir as the parent company conducts a wide-ranging strategic review designed to cut its cost base.


Singapore Airlines (SIA) has said the review, announced in May after a surprise fourth-quarter loss, could result in job losses and changes in its network and fleet as it battles intense competition that has slashed ticket prices.


SilkAir, SIA's premium narrowbody arm, said it would transfer to Scoot its services from Singapore to Kuching, Malaysia and from the city-state to Palembang, Indonesia from October and November, respectively.


"There are sometimes opportunities whereby the budget side of the business can do a more effective job of serving the route," Scoot Chief Executive Lee Lik Hsin told reporters on Tuesday. He cited a previous shift of the Hangzhou route from SilkAir to the budget carrier.


Read full story: reuters.com

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