Scoot CEO Campbell Wilson, speaking at CAPA's LCCs & New Age Airlines in North Asia Conference in Macau, stated (06-Sep-2012) the low-cost, long-haul carrier would be interested in launching service to South Korea if the Singapore-South Korea bilateral is expanded. "If we get rights we would certainly be interested," Mr Campbell said, pointing out Korea is a popular destination for Singapore residents and Singapore is popular destination for Koreans. Currently there is no room in the Singapore-South Korea bilateral for Scoot because its full service parent Singapore Airlines is now using nearly all the traffic rights available to Singapore carriers (a few weekly frequencies are available during certain times of the year but Scoot is not interested in launching a new market unless it has the ability to eventually grow to daily service). Mr Campbell hopes South Korea liberalises faster and recognises the economic value Scoot would bring to South Korea if it was able to serve the country. Both Busan and Seoul would be potential markets for Scoot.
Scoot interested in Korean market if bilateral opens up: CEO
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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.
Scoot selects Athens as first route in Europe; head to head against intense Gulf competition
Singapore Airlines' (SIA) medium/long haul low cost subsidiary Scoot has confirmed Athens as its first European destination. Scoot plans to commence four weekly flights between Singapore and Athens in Jun-2017, using 329-seat Boeing 787-8s.
Scoot will need to rely heavily on connections beyond Singapore, particularly to Australia, to make the route viable. Australia has a large Greek diaspora. Scoot will not face any LCC competition from Australia or Southeast Asia to Greece but will need to overcome aggressive competition from Gulf carriers – something that full service Singapore Airlines has struggled with. But Scoot's entry pricing is very aggressive.
High load factors will be required to offset low yields but Scoot could struggle to maintain high load factors on a year-round basis, given the seasonality of the Athens market. Scoot could face similar challenges in the other European markets that it is preparing to launch in 2017.