Wednesday, May 25, 2011

SIA to launch low-cost carrier

That was the exact headline from today’s ST. And welcome news it is. I have often thought it would be wonderful to fly non-stop to the US and speed up the miserably long flight I make every year, but SIA’s current flights that go direct to New York have no economy class whatsoever!

It makes good business sense. Let the highly profitable airline take only high-paying business and first class passengers, and start a budget airline for regular people who don’t have $10,000 to spend on a single ticket.

The new airline would focus on medium and long haul flights. Most Singaporeans have done the usual holidays in the region – Bali, Phuket, Hong Kong, etc. This might help them get to more distant destinations, without paying SIA’s usual pricey rates.

There are other synergies as well. Instead of firing their Singapore Girls when they get pregnant, or develop crow’s feet, they could simply redeploy them to the low-end side of the operation.

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