Scoot CEO Campbell Wilson, speaking at CAPA's LCCs & New Age Airlines in North Asia Conference in Macau, stated (06-Sep-2012) flight attendants at the carrier share hotel rooms on overnight trips, one of many cost saving measures Scoot introduced when launching services in Jun-2012. "Our crews share rooms. That's a cost savings measure," Mr Wilson said noting the savings from such a measure is significant, particularly on non-daily routes such as Singapore to the Gold Coast, Tianjin and the not yet launched route to Shenyang and Qingdao. Scoot also operates daily flights to Bangkok and Sydney. Bangkok is Scoot's only route that can be operated as a turnaround basis with a single crew while in Sydney all crews stay just a single night as the route is served daily.
Scoot crews share hotel rooms to save on costs: CEO
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Tigerair Singapore 2017 outlook: fleet expansion resumes as brand disappears, transit traffic grows
Singapore based LCC Tigerair faces a year of transition in 2017 as it combines with the medium/long haul LCC Scoot. Tigerair and Scoot aim to end 2017 with a single operator's certificate and a single brand as the Tigerair name disappears from the Singapore marketplace, after an at times tumultuous 13 year run.
The Tigerair brand will remain in Australia and Taiwan, at least for the time being. However, the Tigerair Group – which was absorbed by the Singapore Airlines (SIA) Group in early 2016 – no longer owns stakes in any overseas affiliates and is now focused entirely on growing in its home market of Singapore.
The Tigerair Singapore operation has not grown in three years, actually reducing the size of its fleet in response to overcapacity and in a bid to improve profitability. Tigerair Singapore is now profitable again, and expansion of its A320 fleet will resume in late 2017, ending a three year hiatus.
Scoot 2017 outlook: challenging market conditions and Europe launch could impact profitability
Singapore Airlines (SIA) medium long haul LCC subsidiary Scoot faces a potentially challenging 2017 as it launches flights to Europe and merges with the short haul LCC Tigerair. Scoot is also planning a series of network and schedule adjustments, which are critical to the future success of the European routes and long-term profitability.
Scoot has been successful in the initial four and a half years since its mid-2012 launch, becoming profitable in a relatively quick timeframe and unlocking a new phase of growth for the SIA Group. However, 2017 will bring intense competition and ambitious expansion in markets that are not likely to be profitable in the short to medium term.
Scoot’s newfound profitability could be at risk due to yield pressures, higher fuel costs and expenses related to new long haul route launches. Scoot and its ongoing integration with Tigerair are necessary strategically, and should improve the SIA Group’s long-term position, but the short-term outlook is relatively cloudy.