Singapore Airlines needs to accelerate Scoot expansion in Europe: long haul low cost Part 4

Premium Analysis

Scoot faces some critical decisions in the coming months as the Singapore Airlines (SIA) LCC subsidiary begins long haul operations. Scoot recently took delivery of its first Boeing 787 configured for long haul flights and is about to take its second long haul configured aircraft, followed by two more in the current fiscal year.

Scoot so far has only committed to one long haul route, Athens, which will launch in Jun-2017 with four weekly flights, but will be downgraded to only two weekly flights from Oct-2017. Scoot quickly needs to decide on at least two more long haul routes for its sub fleet of four long haul equipped 787-8s. Potential destinations in Europe and Hawaii have been under consideration for more than a year, but Scoot has not had any new route announcements in nine months.

Scoot has so far not considered the UK, due to overlap with SIA, and Germany, due to overlap with the SIA-Lufthansa JV. However, Norwegian's recent decision to launch London-Singapore - and other potential Norwegian routes to Singapore - significantly changes the competitive landscape, necessitating a review by the SIA Group. Berlin should also be seriously considered, despite the ramifications with Lufthansa.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 3,424 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.