Singapore Airlines (SIA) may set up a new no-frills carrier instead of keeping open the option of converting regional arm SilkAir into a low-fare unit.
In a statement, the Star Alliance airline says that it "is evaluating the start-up of a new low-cost, no-frills carrier...a specially formed task force has been working on the concept of the low-cost, no-frills airline and studying the economics of such a standalone model with its own brand identity. A decision on the project will be reached within this year and an announcement made at that time."
The revelation marks a major rethink, as the airline's executives have repeatedly said over the past year that if low-cost airlines such as Malaysia's AirAsia start posing a challenge, then it would look to SilkAir, which flies Airbus A319/A320s, to quickly create a low-cost operator.
AirAsia operates domestic flights only, but has said it is considering launching international flights from Senai airport near Johor Bahru, just across the border from Singapore.
Source: Flight International
