Thursday, December 8, 2011

Cheaper Flights from Singapore to Sydney with Scoot

Scoot, recently named long haul budget arm of Singapore Airlines (SIA), has announced that it will have flights from Singapore to Sydney by mid-2012:

"Scoot's decision to fly its first service between Sydney and Singapore from mid-2012 is fantastic news," said Barry O'Farrell, Premier of New South Wales. "This is a great win for Sydney and travellers in the Asia Pacific region, opening up Australia's premier city to new aviation routes and lower-cost carriers. This is a significant step towards our goal of doubling tourism expenditure by 2020, placing Sydney front and centre of the boom in budget travel in emerging markets like Singapore, China and India."

"Scoot is absolutely delighted that Sydney, one of the world's great cities, will be our inaugural destination. And as the first true no-frills airline operating nonstop daily between Sydney and Asia, we can't wait to bring a whole new style of travel, even better airfares and our unique attitude – our Scootitude – to shake things up. Sydney, here we come! "said Campbell Wilson, Scoot's CEO."
Source - Scoot to Sydney!

As far as I know, this is the first time a long haul budget flight is introduced direct flights from Singapore to Sydney. Jetstar Airways, the budget unit of Qantas, flies from Singapore to another big Australia destination, Melbourne. Although Scoot has previously announced that it will not fly routes not covered by its parent company, Singapore Airlines, it is now offering a cheaper alternative on this route to SIA with the same planes, SIA flies Boeing 777s and Airbus A 380s on this route

Miyuru Sandaruwan says the destination choice may be due to the fact that Air Asia X, successful long haul service of Air Asia, does not fly there:

"While Scoot might have chosen Sydney as their first destination owing to the fact that AirAsia X does not fly there, this move is very unlikely to have a significant impact on AirAsia X for the foreseeable future. AirAsia X's (and AirAsia's) larger network gives it the edge to profitably face this challenge by focusing on the areas where it already has a strong foothold. Sydney is still very much a premium market compared to elsewhere in Australia and the low fares catchment could be smaller.

 Even if SIA might have hoped for it, the effect on Emirates from this move would be close to zero, unless Scoot launches flights to UK, Italy or Lebanon any time soon.

One has to wonder whether this means SIA has shoot on its own foot. But it really is not, as Scoot will achieve SIA's target on scaring away the competitors. On a strategical level, it's a mixed move. But they could have done a lot better."
Source : Scoot to Sydney and its impact on others

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