Singapore Airlines fleet strategy: 737 transfers from SilkAir to Scoot

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The Singapore Airlines (SIA) Group plans to transfer 737-800s from its regional full service subsidiary SilkAir to the low cost subsidiary Scoot in the latest adjustment under the group’s ongoing strategic review. Potentially several 737-800s will be retrofitted to high-density all-economy configuration before entering service with Scoot, enabling the group to lower unit costs and compete more effectively on short haul routes now served by SilkAir.

SIA has been working to cut costs and improve profitability through several measures, including route transfers. Five routes have already been transferred from SilkAir to Scoot since late 2017, and several more transfers are likely over the next year. 

As lower cost Scoot takes over more routes, a rebalancing of the SIA Group’s narrowbody fleet was inevitable. In hindsight, SIA overordered in 2012 when committing to 54 737s for SilkAir; at the time, Scoot had just launched operations as an all-widebody operator and Tigerair was not part of the group. 

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