SQ has JQ in its target sites with new low cost airline

[markis10]

Interesting news:

http://www.smh.com.au/business/jetstar-in-crosshairs-of-singapore-airlines-20110526-1f5ca.html

SINGAPORE Airlines is creating its own low-cost carrier to take on the likes of Jetstar, Air Asia and Tiger Airways for medium and long-haul routes in the Asia-Pacific region.
The new airline - whose name is yet to be announced - will be a wholly owned subsidiary and be based out of Singapore, it was announced late last night.

Read more: http://www.smh.com.au/travel/travel...ls-offshoot-20110526-1f58q.html#ixzz1NRYj6y1S
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[codash1099]

See also SIA to form long-haul low-cost subsidiary

 

[FlyingProf]

SQ already has a "LCC" in Silk Air so why would it bother with another one?

 

[dajop]

SQ already has a "LCC" in Silk Air so why would it bother with another one?

In terms of fares, Silk Air is anything but low cost! Silk Air is the narrow body arm of SQ that still offers full service and is connected to the network. But if you read the articles it talks about medium-long haul, widebodies, point to point fares (ie not connected to the SQ network) and therefore would be a completely different operation to Silk Air. One can just speculate, but this could be aimed at the many secondary ports in China that MI can't reach and won't sustain SQ services . Or perhaps targetting the middle eastern carriers who do compete a lot on price?