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Old 21st June 2018, 03:17 PM   #1
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Default Singapore Airlines fleet strategy: 737 transfers from SilkAir to Scoot

The Singapore Airlines (SIA) Group plans to transfer 737-800s from its regional full service subsidiary SilkAir to the low cost subsidiary Scoot in the latest adjustment under the groupís ongoing strategic review. Potentially several 737-800s will be retrofitted to high-density all-economy configuration before entering service with Scoot, enabling the group to lower unit costs and compete more effectively on short haul routes now served by SilkAir.

SIA has been working to cut costs and improve profitability through several measures, including route transfers. Five routes have already been transferred from SilkAir to Scoot since late 2017, and several more transfers are likely over the next year.

As lower cost Scoot takes over more routes, a rebalancing of the SIA Groupís narrowbody fleet was inevitable. In hindsight, SIA overordered in 2012 when committing to 54 737s for SilkAir; at the time, Scoot had just launched operations as an all-widebody operator and Tigerair was not part of the group.

Source: CAPA https://centreforaviation.com/analysis/reports
Several things come to my mind:

1. Scoot will operate a mix of A320 and B737-800 narrowbody. Isn't it against the conventional wisdom of operating common fleet to achieve lowest cost? Did Scoot follow through with Tigerair A320 MOU for 37 A320neo in 2014?
On 24 March 2014, Tigerair signed a Memorandum of Understanding (MOU) with Airbus for the purchase of 37 Airbus A320neo aircraft with 13 options. The aircraft will be powered by Pratt & Whitney PW1100 engines.
Source: Wikipedia
2. Since SQ wlll be refurbishing MI with new seats, will SIA Group recycle MI seats on hand-me down Scoot plane? Maybe reupholster the seat? Personally I think black faux leather made the cabin too dark and I prefer the Scoot B787 blue fabric seat.

3. Which are the routes to transfer to Scoot? I foresee many Malaysian and Indonesian cities primarily.
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