Scoot adds Hong Kong, making it the third Singapore Airlines brand in HK as it targets segmentation

Sceptics may think Scoot's addition of a five-weekly Singapore-Hong Kong service on 15-Nov-2013 creates overlap with sister carrier Singapore Airlines and SIA Group affiliate Tigerair, which also serve the Singapore-Hong Kong market. But Scoot's route, which increases to daily in Dec-2013, is being carefully segmented.

The SIA Group, unlike others, has proclaimed low-cost carriers have a future and so the group must have full-service and low-cost brands. While Scoot's schedule partially overlaps with SIA, the product difference between the full service operator and the high density longhaul LCC subsidiary significantly reduces cannibalisation.

SIA also targets long-haul connecting traffic. Meanwhile Scoot's Hong Kong service departs and arrives in the early morning, avoiding overlap with Tigerair's predominantly afternoon and evening schedule. Scoot is particularly bullish on the overnight arrival into Hong Kong allowing for many connections in Singapore with Tigerair, with whom Scoot interlines.