Business News

Singapore Airlines announces plan for new budget carrier

Nov 1, 2011, 4:40 GMT

Singapore - Singapore Airlines Ltd (SIA) on Tuesday announced that it would start a new low-cost carrier for medium and long-haul routes by the middle of next year.

Run independently from the national flag carrier, it would offer fares up to 40 per cent less than full-service airlines, SIA said.

The carrier named Scoot would begin with a fleet of four Boeing B777-200 aircraft, flying to Australia and China.

Routes would be added to India, Europe and eventually to Africa and the Middle East, it said.

SIA already has a stake in budget carrier Tiger Airways and owns the regional carrier SilkAir.

Australian Qantas Airways' low-cost brand Jetstar has a strong foothold in Asia-Pacific and is one of the biggest operators from SIA's home base of Changi Airport.

Singapore Airlines faces competition from other full-service carriers like Dubai-based Emirates on long-haul routes.

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