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Long haul LCC Scoot's 2015 outlook: transition to 787s and strategic growth, including Melbourne

Analysis

Singapore Airlines' (SIA) long-haul low-cost subsidiary Scoot is preparing for a momentous 2015. The year will begin with the first 787 delivery and include the launch of approximately seven new destinations as Scoot's fleet expands from six to 10 aircraft.

Scoot unveiled plans on 9-Dec-2014 to launch services to Melbourne, its first route announcement in over a year. But Melbourne, which will be added in Nov-2015, will be the last (or one of the last) of several new destinations launched during 2015.

While delivery of Scoot's first 787 has been pushed back to Jan-2015, there have been no changes to the rest of the delivery schedule. Scoot plans to take 10 of the 20 787s it has on order in 2015. Its existing fleet of six 777-200s will be phased out after six or seven 787s are delivered.

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