Singapore Airlines and Scoot awarded (07-Jun-2013) Rolls-Royce a USD4 billion contract to power its 50 Boeing 787 aircraft with its Trent 1000 engine and to provide its TotalCare service pack, under which Rolls-Royce will be responsible for the provision of maintenance, repair and overhaul for the engines as well as spare engine parts. Singapore Airlines and Scoot currently operate a total of 88 Rolls-Royce powered aircraft, with 88 more on order. [more - original PR Scoot][more - original PR Singapore Airlines]
Singapore Airlines and Scoot select Rolls-Royce Trent 1000 engine to power 50 Boeing 787s
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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.
Jetstar Asia Part 2: The LCC's hiatus in fleet expansion persists in 2017; overcapacity concerns
This is the second half of an analysis report on Jetstar Asia. The first part examined the airline’s improved profitability and its focus on growing interline and codeshare traffic, which has boosted yields. This part will focus on expansion opportunities in secondary markets and Jetstar Asia’s decision to maintain capacity at current levels.
Jetstar Asia’s fleet has been held steady at 18 A320s since early 2014, when it reduced its fleet by one aircraft and suspended fleet expansion in response to overcapacity in the Singapore short haul market. Jetstar Asia is continuing the hiatus in its fleet expansion in 2017 as it believes its home market still suffers from overcapacity.