Singapore Airlines' acquisition of a 90% stake in Tiger Air marks a turning point in the SIA group's strategy to win back the Singapore market. While Singapore Airlines had been losing market share to Gulf carriers for several years, and especially to low-cost carriers, the multi-brand strategy initiated in 2006 with Tigerair and amplified with the creation of Scoot, the long-haul airline with simplified services, is now a reality.<\/p>\n
The SIA group now comprises four brands: Singapore Airlines remains the \"flagship\" brand, with premium service in all classes, including economy. The airline has been investing in its premium classes - first and business - for several years, and at the end of 2015 launched an Economy Premium class whose very high standards are reminiscent of the business classes of some fifteen years ago. Then there is its regional subsidiary Silk Air, which has been operating in its current form since 1992. Silk Air complements SIA on lower-volume regional routes. Its fleet of Airbus A319s and A320s is gradually being converted to a fleet of Boeing 737-800s and B737-MAX8s.<\/p>\n
The third aspect of this multi-brand strategy is Scoot, the group's latest addition, which serves a number of routes already operated by SIA but is aimed at travellers on a tighter budget. The company specialises above all in services to China - half of the Scoot network - and Australia. Scoot has 11 Boeing 787 aircraft and serves 16 destinations in the Asia-Pacific region. It accounts for almost 4% of the monthly seat capacity on flights from Singapore.<\/p>\n
Finally, SIA is working on the ultra-low-cost segment with its subsidiary Tigerair. The airline has experienced a number of financial difficulties, losing money in 2012 as well as in 2014 and 2015. As a result, SIA Holding has become the carrier's main shareholder. Initially, SIA only owned 49% of the capital, this share increasing to 56% in 2014. SIA then increased its stake to 74.5% of the company's shares and finally took 90% of the company's control on 5 February this year. The listing of Tigerair will therefore be suspended, with the accounts now appearing under those of Singapore Airlines.<\/p>\n
SIA's increased stake in Tigerair heralds changes in the company's strategy for its low-cost business. It opens up the possibility of a merger with Scoot, with two airline divisions for the group: on the one hand the traditional 'Premium' activity around SIA\/Silk Air and on the other the low-cost activity around Scoot-TigerAir, following the example of Lufthansa's strategy in Europe and its Eurowings\/Germanwings division.<\/p>\n
Such a hub would also enable SIA to develop a \"parallel\" hub for its low-cost business by simplifying connections between Scoot and Tiger and harmonising the networks. At present, the two airlines serve four cities in duplicate: Bangkok, Guangzhou, Hong Kong and Taipei. Harmonising these services is probably already under discussion.<\/p>\n
The most important step for the Tigerair\/Scoot tandem is the compatibility of the reservation systems between the two carriers. In 2014, Tigerair and Scoot had already signed an interline agreement that enabled joint itineraries to be sold, but which remains limited in terms of ancillary services, such as meal reservations, for example. In April, Tigerair's reservation system will migrate to Scoot, enabling the construction of itineraries with connections.<\/p>\n
Today, the SIA Group accounts for more than 50% of the monthly seat supply from Singapore with 116 destinations on non-stop flights. The arrival of Airbus A350s in the Singapore Airlines fleet will enable the carrier to offer non-stop service to the United States again from 2018. During the summer, Singapore Airlines is launching new routes to D\u00fcsseldorf and Manchester, as well as to Wellington via Canberra - two cities which until now had no links with Asia.<\/p>","protected":false},"excerpt":{"rendered":"
Singapore Airlines' acquisition of a 90% stake in Tiger Air marks a turning point in the SIA group's strategy to win back the Singapore market. While Singapore Airlines had been losing market share to Gulf carriers for several years, and especially to low-cost carriers, the multi-brand strategy initiated in 2006 with the acquisition of Tiger Air [...] was a major step forward.<\/p>","protected":false},"author":21,"featured_media":48691,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[131,1361],"type-darticle":[],"n_magazine":[],"class_list":["post-48689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aerien","tag-compagnies-aeriennes","tag-low-cost","vapo-free"],"acf":[],"yoast_head":"\n