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Scoot begins new chapter as Singapore Airlines long-haul LCC subsidiary takes first 787

Analysis

Singapore Airlines long-haul low-cost subsidiary Scoot has begun the long anticipated transition from 777s to more efficient 787s. Scoot took delivery of its first of 20 787s on 31-Jan-2015 and plans to place the aircraft into service on 5-Feb-2014.

Scoot is planning a rapid fleet transition which will see all six of its 777-200s phased out by the end of 3Q2015. The airline also plans to launch several new routes as its fleet expands to 10 aircraft, a mix of 375-seat 787-9s and 335-seat 787-8s, by Apr-2016.

The 787 is important, but not the only, component of a long-term business plan that Scoot needs to implement to reach profitability. Partnerships are also crucial for unlocking growth as currently less than 5% of Scoot passengers connect to other airlines.

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