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Scoot’s new Guangzhou, Hangzhou and Jeddah routes illustrate evolution of SIA Group network strategy

Analysis

Medium/long haul low cost carrier Scoot is beginning a new phase as its role within the Singapore Airlines (SIA) Group evolves to include replacing sister carriers on routes to China, India and Saudi Arabia. The new role will see Scoot increase its reliance on feed from other SIA Group carriers, particularly for the Jeddah market.

Of Scoot's initial 14 destinations, six were launched as new destinations for the group while eight destinations were launched to supplement capacity provided by existing SIA Group brands. But as Scoot quickly expands its fleet from seven to 11 aircraft it is starting to also take over flights operated by other SIA Group carriers on at least three and likely four or five routes.

Scoot is launching Singapore-Hangzhou on 25-Oct-2015, taking over a route previously served by SIA full service regional subsidiary SilkAir. The SIA Group also recently announced that Scoot will take over from Jan-2016 one of two daily Singapore-Guangzhou flights operated by the group's short haul LCC subsidiary Tigerair and from May-2016 the three weekly flights to Jeddah operated by SIA mainline. Scoot is also expected to start serving existing SIA Group destinations in India in 1H2016.

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