Asian low-cost, long-haul start-up Scoot is to launch flights between Singapore and Bangkok in July 2012, as it continues to expand its launch network. The carrier, a wholly-owned subsidiary of Singapore Airlines will launch operations in June with links to Gold Coast and Sydney in Australia, while flights to Tianjin, in China will be added from August. The decision to serve the regional trunk route to Thai capital has surprised many, with China and expected to be the main focus of future network expansion, but the decision may be as much to do with aircraft utilisation than passenger demand.
According to the airline’s GDS inventory the Singapore – Bangkok service will be launched with effect from July 5, 2012 and reservations are already being take on the route. The airline will offer a daily service with an early evening departure from Singapore Changi and a late evening return from Bangkok Suvarnabhumi. When Scoot inaugurates the flight, the two Asian capitals will be linked by around 170 weekly flights, offering almost 40,000 seats in each direction.
Scoot’s parent Singapore Airlines already serves this route on a five times daily basis but it faces strong competition from Thai Airways International and more recently from the growing Asian low-cost sector in the form of Jetstar Asia, Thai AirAsia and Tiger Airways. Cathay Pacific Airways also serves the route as a continuation of its flights from Hong Kong. In 2011 an estimated 2.29 million O&D passengers travelled between Bangkok and Singapore, up 21.2 per cent on the figure the previous year.
When you look back historically you can perhaps see how Scoot’s arrival can benefit the wider Singapore Airlines Group. When you compare O&D demand figures for 2006 and 2011 you see that there has been little growth in the market, despite some notable Year-on-Year rises and falls. The growth of low-cost competition may not have stimulated the market has much as many would have maybe predicted over the past five years, but the sector’s development has certainly impacted the legacy operators with Singapore Airlines’ own share of the market slipping from 32 per cent in 2006 to just 22 per cent in 2011.
Scoot is better positioned to compete with these low-fare rivals and with the operation of widebody equipment (versus the smaller narrowbodies of the existing LCCs) its fare structure may further stimulate the market. The route launch will also support fleet utilisation as the relatively short sector for the region (a 5 hour 50 minute return block time) will enable the aircraft to stay in the air when it otherwise would sit on the ground. The schedule fits nicely around Scoot’s planned four times weekly link to Tianjin, which commences on August 23, 2012 with between two and two-and-a-half hours on the ground at Changi between the flights.
The low-cost start-up is currently finalising the final stages of its inauguration and has in fact recently brought forward its launch by a couple of weeks. The airline has revealed it will now start services between Singapore and Sydney on June 4, 2012 with flights to Gold Coast following from June 12, 2012.
“Our launch preparations continue at a fast pace and we’re delighted to be able to put earlier flights on sale,” said Campbell Wilson, Chief Executive Officer, Scoot. “The additional flights in June will be perfect for families who have yet to make plans for the school holidays, and those who wish to escape the heat in Singapore for some cool times in Australia – and vice versa!”
Related Content
