737 aircraft not ideal for Scoot, but presents best solution for wider SIA Group: CAPA Analysis

CAPA - Centre for Aviation, in a report entitled: 'Singapore Airlines fleet strategy: 737 transfers from SilkAir to Scoot', stated (21-Jun-2018) Boeing 737-800 aircraft are not ideal for Scoot, but offers the best solution for the Singapore Airlines Group (SIA Group). According to the report:

• Transferring 737-800s to Scoot is hardly ideal as operating two narrowbody aircraft types will add costs and complexity. It is very unusual for an LCC to operate both 737s and A320s, particularly an LCC that also operates long haul and has a total fleet of less than 50 aircraft.
• Adding A320ceos or accelerating A320neo deliveries would be a more attractive option, specifically from Scoot's perspective. However, this would not have resolved the wider group challenges with the 737 fleet and order book. Retrofits are also costly, and should always be avoided when possible.
• The SIA Group could have potentially allocated new 737 MAX 8s to Scoot to save on retrofit costs. However, SilkAir is better off focusing on the MAX from a product and range perspective.
• Ultimately, it is clear that Scoot needs additional capacity in order to take over more SilkAir routes, and the transfer of 737-800s was the best solution for the SIA Group. [more - CAPA Analysis]