Scoot! SQ's LCC gets a name

[inix]

I'm not so concerned about the other stuff, but I'm really more interested about pricing. SQ mentioned that it will be 40% lower, but I believe this will be based on SQ's own pricing. If we take that as a guage, would SQ be saying 40% off the full SQ fare?

If we take that logic, a SIN - LHR would likely be around S$900 before taxes, adding up to around $1.2 - $1.3K? Going by that price, SQ's new Scoot might already run into immediate competition where plenty of full service airlines are offering SIN - LHR tix at around that range +- $100?

[SilverChris]

I'm not so concerned about the other stuff, but I'm really more interested about pricing. SQ mentioned that it will be 40% lower, but I believe this will be based on SQ's own pricing. If we take that as a guage, would SQ be saying 40% off the full SQ fare?

If we take that logic, a SIN - LHR would likely be around S$900 before taxes, adding up to around $1.2 - $1.3K? Going by that price, SQ's new Scoot might already run into immediate competition where plenty of full service airlines are offering SIN - LHR tix at around that range +- $100?

But (hopefully), their promo fares can compete with D7. If it's really 40% less than SQ's FULL fare, then I doubt they're going to be very successful.

[flying.monkeyz]

Scoot represents a radical change of pace for SIA but the new long-haul LCC is no pioneer

New Singapore Airlines long-haul low-cost subsidiary Scoot is doing everything it can to differentiate itself from its parent company but the carrier will likely end up looking a lot like Asia’s other long-haul LCCs, and for good reason: the success of AirAsia X and Jetstar’s long-haul unit provide ample components that are worth mimicking.

After considering an all-economy configuration, Scoot will follow both AirAsia X and Jetstar in offering a premium cabin upfront. While Scoot contemplated the purest of LCC models, it has decided to follow AirAsia X and Jetstar in offering a connection product. To facilitate potential codeshares Scoot will use Navitaire’s New Skies reservation system, which by no coincidence counts AirAsia X and Jetstar as two of its biggest customers.

Scoot is also following AirAsia X in striving to implement a wireless IFE solution although it is unclear if the technology will be available in time for Scoot’s mid-2012 launch.

Scoot is duplicating several elements of Jetstar’s close but separate relationship with its parent airline group, Qantas. Similar to Jetstar, Scoot will be independently run and managed. Matching at least the initial stated intentions of Jetstar’s long-haul operation, Scoot aims to complement its legacy sister carrier and bring in new business to its parent company rather than substitute existing business.

Scoot CEO Campbell Wilson promises that Scoot will not be used like SIA regional subsidiary SilkAir to take over any underperforming or leisure-focused routes from SIA. Time will tell if this holds true as Qantas, in first announcing in Dec-2005 the establishment of long-haul low-cost services under the Jetstar brand also said the new operation would be complementary and “not in any way be at the expense of” Qantas’ full-service mainline operation although later some Qantas routes to were handed to Jetstar.

Four routes within first year, including overlap with SIA

Mr Wilson told reporters at Scoot’s 1-Nov-2011 brand launch event in Singapore that the carrier will serve at least four routes within its first year. He said Scoot is still in the process of finalizing its initial network but confirmed Australia and China are high on its list. Mr Wilson says Scoot is open to secondary cities and alternative airports as well as primary hubs. AirAsia X has dabbled with secondary cities and alternative airports, like Tianjin and Hangzhou, but primarily because it was not given access by the Malaysian government to the associated primary cities, Beijing and Shanghai, respectively.

Scoot will likely operate alongside SIA on some routes while for others it will be the first SIA Group carrier. On the latter, SIA clearly will pursue opportunities for feed. Navitaire’s New Skies platform will give Scoot the functionality to codeshare with SIA’s in-house reservation platform although it has not yet been decided if a formal codeshare will be implemented from the beginning. At the very least Scoot will offer a transfer product which will allow its passengers to connect with SIA as well as other carriers using Changi Airport’s world-class transit facilities.

Navitaire powers ability for connections

Like AirAsia X and Jetstar, Scoot will be a point-to-point rather than network carrier. But the additional revenues that come with facilitating transfers (through codeshares, interlines and/or simpler transfer products that still allow for through check-in) is simply too good to pass up, as AirAsia X and Jetstar have discovered. “Singapore is a wonderful air hub ... we’ll certainly leverage that,” Mr Wilson promises without elaborating on the details of what the tie-ups will look like.

Connections come with extra cost and complexity but also typically bring in higher paying passengers, especially if they come from corporate channels. Scoot will not exclude any distribution channel and focus exclusively on internet bookings like the purist of short-haul LCCs. Like AirAsia and Jetstar, Scoot will be open to using travel agents and the GDSs. “We will take business from everywhere we can get it,” Mr Wilson says.

Large premium cabin, likely with only recliner seats

Corporate travel agents and SIA, which has one of the world’s most renowned premium products, will be particularly important to fill up Scoot’s relatively large premium cabin. Mr Wilson says Scoot will equip each of its B777-200s with 32 or 40 premium seats. This compares to only 12 to 18 premium seats currently in AirAsia X’s fleet and is closer to the 38 premium seats offered on Jetstar’s widebodies. The Jetstar model in this case is more relevant to Scoot as both carriers are subsidiaries of full-service airlines, giving them more potential premium business than a pure LCC group such as AirAsia.

With a relatively large premium cabin for an LCC, Scoot is clearly counting on business class connection passengers from SIA and SilkAir as well as premium seat sales on a point-by-point basis (AirAsia X relies entirely on the latter as all of AirAsia Group’s narrowbody fleet is in all-economy configuration). Matching the Jetstar premium product is also important as Scoot will likely be competing head to head with Jetstar on such routes as Singapore-Beijing and Singapore-Melbourne while competition with AirAsia X will only be indirect as it does not have long-haul services from Singapore. But AirAsia X is increasingly building transfer traffic, making the hub location irrelevant as AirAsia X, Jetstar and Scoot have the same origin and end points via different hubs.

Continue reading at http://www.centreforaviation.com/ana...-pioneer-61768
Banana plane...

[feb01mel]

In the Straits Times today, Scoot will use Terminal 2 in Singapore...I thought they will be using the Budget Terminal...

[flyguy]

Scoot is likely to take a few years to make a profit - as tiger took almost 6 yrs before turning in a profit. Its kinda hard to be a low cost carrier when in the 1st place Scoot have at least 12 senior people from its parent SIA - and am sure these dozen or more soon will not take a pay cut, privileges or even a substantial one when they crosses over to Scoot. Hence its costs are already higher than say compared to D7 with its all local management too. Just like Tiger having 3 senior non-locals as compared to AK's all malaysians n a good s'porean.
As for its lower fares of even "40% off SQ's" - am not sure as when SQ have its promo fares, the fares are already very competitive as a premium carrier.
And not forgetting D7's ability to match easily any fares that Scoot may offer considering they have a head start and even more fuel efficient planes.

[kapitan]

picture off this morning Straits Times.....



The person on the extreme right is the Chief Pilot for the new airline, funny thing is, he was a naval officer before he went on to be a pilot.....

[flyguy]

believed SQ should stick to its core biz instead of going into areas "where it thinks can make money or use its older or excess equipment, or follow others" - like some years back when SQ decided to invest n go into the hotel biz - which failed to take-off. And for Scoot the real danger is that it will eat into SQ's pax traffic and the question remains how much % will SQ losses some pax to its Scoot - and esp to Scoot's premium seats.
Believed SQ must stick to its core biz and build upon it to be better - as now with SQ's cranky reservation system and its perceived drop in inflight catering as a result of costs cutting is not a good thing.
And for SQ's holding of 40% of Tiger and together with its parent Temasek's holdings in Tiger which both amounts to abt 70% of Tiger - and Tiger as a LCC doesnt really make it as a good success and with Tiger's aussie blues will put it back into losses again.

[kapitan]

Just read this from somewhere;

Scoot refers to the act of rubbing or dragging the anal area or perineum (the area between the anus and genitals) on the ground. Typically, the hind legs are extended in front of the animal as the pet drags itself forward. Dogs will scoot much more commonly than cats. Anything that causes an irritation or itching to the area under the tail may cause an animal to scoot.

[milehighj]

Just read this from somewhere;

http://chowananimalhospital.vetsuite...nt.aspx?Id=706

[singha-puri]

This looks nice

[Megatop]

Deleted

[SQ_fanatic]

Of course we aren't expecting the SQ service, but I guess its accountability and the basic (some) customer service which Tiger didnt have. Hopefully, they get the idea of 'no frills' right this time round...

[flyguy]

Wilson's statement on "And so in the 'rare event' a flight is cancelled or delayed, for any reason, travellers could end up finding out only when they get to the airport. If they are stranded overseas, they may have to make their own arrangements for a hotel stay. And when they write to Scoot to complain about the horrific experience, they may not get a reply" - is not wise bec as a new low costs the main things in making it a success is NOT to be like Tiger in almost zero customer delivery. It shd make good efforts in customer service esp when there is a problem with the flight. Otherwise Scoot will be just like Tiger and having a not good reputation.

[LOWJHG]

it would be very nice if the guys at scoot can tell us if PPS credits can be earned on their premium cabins.

[SQ_fanatic]

it would be very nice if the guys at scoot can tell us if PPS credits can be earned on their premium cabins.

Looking at the offerings of KF/PPS, as a Singaporean saying goes, I guess you might have to wait long long.