Scoot selects Nanjing, capping a busy first year of operations for the Singapore Airlines subsidiary

Singapore Airlines' (SIA) low-cost long-haul subsidiary Scoot has completed the last phase of its initial network development, announcing on 8-Apr-2013 the selection of Nanjing as its 11th destination and fourth in mainland China. Scoot will be the only foreign LCC at Nanjing, which like most secondary cities in China is underserved from an international perspective.

Singapore-Nanjing will be launched on 3-Jun-2013 and give Scoot a total of eight routes by its first year anniversary on 4-Jun-2013. After celebrating its first year anniversary the start-up is expected to take a hiatus from fleet and network and expansion for at least 18 months. The hiatus will allow the carrier to focus on improving profitability as its initial network and business model beds down.

The hiatus also gives Scoot ample time to prepare for the delivery of the first of at least 20 787s in late 2014. The 787 will usher in a new era of growth and improved profitability for the carrier. But while Scoot waits for its mix of 787-9s and 787-8s, competitors could pursue faster expansion, leaving Scoot with a smaller slice of Asia's emerging low-cost medium/long-haul market.