Scoot flying to 5 new destinations by June next year

SINGAPORE — Budget airline Scoot is on a network expansion spree as it aims to double its fleet size over the next five years. 

The announcement was made at an event on Tuesday (July 25) to mark the completion of the merger of national carrier Singapore Airlines’ (SIA) two budget services, Scoot and Tigerair, under a single operating licence and the Scoot brand.

By June next year, Scoot will add five new destinations to its network — four short- to mid-haul routes including Harbin in China, Kuantan and Kuching in Malaysia and Palembang in Indonesia. 

In addition, Scoot will launch a long-haul route to Honolulu, which will be its maiden flight to the United States.

Scoot will be taking over the flights to Kuching and Palembang from SilkAir, the regional wing of SIA.

Announcing the new routes on Tuesday, Scoot chief executive Lee Lik Hsin said that the airline is on an “aggressive growth path”, and more new routes to the US and Europe are being “carefully considered”.

“We will continue to expand our long-haul routes although the bulk of the resources will still be (focused) on Asia,” Mr Lee added. 

In response to queries about the ongoing restructuring at parent airline SIA, Mr Lee said most of the streamlining at the operational level for the budget carrier would have been accomplished in the Scoot-Tigerair merger process. 

In May, the group announced an unexpected fourth-quarter net loss of S$138 million, its first in five years. SIA subsequently said it would be rationalising operations and implementing cost-cutting measures.

“We will be doubling our fleet size over the next five years. We will need every pair of hands and even more,” Mr Lee said in response to queries related to jobs at Scoot.

According to Mr Brendan Sobie, chief analyst at Capa Centre for Aviation, with the merger now completed, the SIA group is now better positioned to compete and expand in the budget segment of the market.

“These five new destinations for the fourth quarter and early next year will be followed by several more ... into 2019. 

“We will see a mix of entirely new destinations for the group and the transfer of more exciting destinations from full-service to budget.”

Post-integration with Tigerair and taking into account the new routes announced, Scoot’s network now comprises 65 destinations across 18 countries. 

The Scoot-Tigerair integration process began in May last year, after the two carriers were brought under a common holding company, Budget Aviation Holdings.

“We are stronger than we have ever been before, and consequently in an even better position to offer our guests more choice, connectivity and value. 

“The enhanced Scoot that we are introducing today is spunky and sassy, and promises to create more travel opportunities for our guests,” Mr Lee added.