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Scoot plans Kaohsiung-Osaka & Bangkok-Sapporo as long-haul LCCs focus on fifth freedom opportunities

17-Apr-2015 8:25 PM

Singapore Airlines long-haul low-cost subsidiary Scoot is planning to launch two fifth freedom routes as it expands capacity for the fist time in over 18 months. The new Singapore-Kaohsiung-Osaka and Singapore-Bangkok-Sapporo routes complement existing services from Taipei to Tokyo and Seoul and will lift Scoot’s share of capacity allocated to fifth freedom sectors to over 20%.

More fifth freedom flights for Scoot are likely, particularly from Bangkok due to the new restrictions blocking expansion to Japan and South Korea placed on its Thailand-based sister carrier NokScoot. Asia’s leading long-haul LCC, AirAsia X, is also planning to launch its first fifth freedom sector, Osaka-Honolulu, and is looking at other similar opportunities including from India to Europe.

Fifth freedom sectors are attractive as they often provide less competitive and higher yielding options than pursuing new routes from home markets. Allocating capacity to other markets is a good option for Scoot and AirAsia X as the Singapore and Malaysia markets have become relatively saturated.

Why don’t women run airlines? Part 2: What do women do? A better corporate culture needed

17-Apr-2015 8:00 PM

Australia domestic airline market outlook: Qantas Group reins in capacity as Virgin continues growth

17-Apr-2015 4:17 PM

Long haul LCCs on the North Atlantic. Ryanair's Michael O'Leary has talked EUR100 fares

17-Apr-2015 3:27 AM

US airline industry unit costs have become highly competitive post-Chapter 11 bankruptcy

16-Apr-2015 10:14 PM

The US airlines' new era of profitablity offers a new basis for sustainability. What will unions do?

16-Apr-2015 9:17 PM

ULCCs glimpse an opening as the US’ consolidated industry focuses on yields and profits

16-Apr-2015 6:00 PM

Hybridising To Capture The Corporate Dollar

Like moths to the flame, most LCCs have eschewed their original religious purity of cost-is-everything, instead recognising that improving yields is a much easier way of making money. However, the real danger in making that strategic leap is that the aggressive focus on keeping costs low is lost, along with the competitive margins against their legacy competitors – who were also busily reducing their costs. The most obvious steps in this evolution were forced on the long-haul low-cost airlines. On long-haul it was harder to maintain a cost differential against the legacy airlines, which were able to achieve greater utilisation, a key cost saving item, using large widebodies. So adding a little to the yield profile became essential and a few larger or near-lie flat seats were added at the front, followed by airport lounges and so it went.Similarly, as short-haul LCCs became ubiquitous and the corporate market grew more price sensitive post-GFC, that product became an obvious corporate target. Not much needed to be done to adapt for point-to-point services; the economy in-flight product was by now not so different from the full service competitors; OTP and frequency were often similar or even better. Just a change of focus and point of sale, with some frills – easy…This panel looks at each side of the equation, corporate buyers, LCCs, full service airlines and intermediariesModerator:Association of Corporate Travel Executives (ACTE),President, and Troovo CEO, Kurt KnackstedtPanellists:

Aer Lingus,Chief Revenue Officer, Mike Rutter
easyJet,Group Commercial Director, Catherine Lynn
CWT,Director, Air Solutions EMEA, Maxime Marembaud
Travelport,Senior VP & Managing Director, Derek Sharp

Redefining Airport Hubs: Connectivity - The Next Vital Piece In The Industry's Advancement

Disruption! Where's the next world-changing innovation coming from? What lies ahead for travel and aviation?

Airlines in Transition 2015 Roundtable Dinner: Ownership and Control

The Evolution Of Airline Groups

Low-Cost And Full Service Airlines Transitioning To A New World
Airline Leader