Scoot impacted by Chinese airlines rapid international expansion

[davidfusq]

One good example of how Chinese competitors have impacted a foreign airline is Scoot.

China is Scoot's largest international market, currently accounting for 18% of its total seats and 23% of its ASKs. Scoot's Chinese routes have historically performed well, leading to rapid expansion.

However, Scoot was in the red in the first three quarters of its current fiscal year (which ends 31-Mar-2019) and is expected to end the year in the red for the first time in four years, due partially to a swing in its performance on China routes.

Source: https://centreforaviation.com/analys...irlines-460504

China seem to be another headache for Scoot for now. Over expansion has created problem of sustainability of yield and hence profitability.

[yuuka_miya]

This may eventually sort itself out, like the bike sharing firms that collapsed in the past year or so.

Expansion of the HSR network and the upcoming abolition of One Route One Airline may start encouraging Chinese airlines to grow more sustainably. HNA is already in trouble.

[slepland]

Its not sorting itself. Its pushing the clawback of its losses on other routes like mel-sin and per-sin.
It keeps doing this then i rather pay jetstar or even premium carriers sq & qantas on the same route.
Sometimes you can see scoot more expensive than premium carriers. Check prior to booking or skip.

As a budget carrier. Stick to basics, budget travel. Its about losing its loyal budget customers just like its premium carrier.

[eamond]

There's no loyalty in China - most people simply chase the lowest possible fare.

And when they dump fares to SIN just like they do to all other places - well, not much you can do unless you depress your yield.

And they always got the back up of domestic routes where the profits are earned

Michael