SIA to set up budget airline

Singapore Airlines (SIA) is to introduce a long to medium haul low-cost subsidiary with an operational start-up set for spring 2012.  An initial fleet of six Boeing 777-200s is envisaged.  Rather like Tiger Airlines (in which it has a 50% stake) it will be managed independently.  However the aircraft will come from SIA with a reconfigured new seating layout.  Rivals Jetstar and AirAsia X both use Airbus A330 aircraft.

The new subsidiary will fly the Boeing 777-200 model when it launches flights next year, after a "detailed evaluation" which no doubt considered the cost of leasing or buying new aircraft as opposed to redeploying the Singapore Airlines planes which are in line for replacement when new 787 aircraft start joining the fleet next year.

The move reflects the fact the planned carrier will be using its parent's 'hand-me-down' fleet for which it already has aircraft maintenance operations for servicing.  Singapore Airlines has long been committed to the 777 but also has A330s in its line-up.

In a statement the airline said: "The B777-200s proven versatility and reliability are key deciding factors in the selection of the aircraft.  The B777 family of aircraft has been a mainstay of the Singapore Airlines fleet since its introduction in 1997.” www.singaporeair.com

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