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Tag: SilkAir

  • AirAsia won’t be missed, says ex-aviation chief

    AirAsia won’t be missed, says ex-aviation chief

    Low-cost air travel will remain largely unaffected if AirAsia were to cease operations because of lost revenue caused by the Covid-19 pandemic, says an aviation expert.

    Malaysia’s former head of civil aviation, Azharuddin Abdul Rahman, said the impact on air travel and tourism would only be felt initially. Low-cost air travel would soar again after other airlines take up AirAsia’s flight slots. Aviation specialist and researcher Roger Teoh agrees, saying new airlines would be created to take the place of insolvent airlines in a survival of the fittest. Azaruddin said AirAsia’s flight slots would be a precious aviation commodity. The carrier had hundreds of slots every day.

    He could not imagine AirAsia closing shop after the airline had “changed the landscape of air travel, not only in this region but in Asia Pacific as well”. Azharuddin said there was a place for both low-cost carriers like AirAsia and legacy full-service carriers such as Malaysia Airlines.

    The two airlines have been at the center of recent speculation about a merger, with Malaysia Airlines suffering the impact of its long-standing financial problems.

    AirAsia recently announced that 96% of its 255-strong fleet had been grounded because of the Covid-19 pandemic. Its staff has been required to take pay cuts of between 15% and 75%, and aircraft manufacturer Airbus recently announced it would sell six aircraft on order by AirAsia.

    Azharuddin said the two airlines should form a partnership but remain as separate entities in order to stay competitive.

    The partnership could capitalize on the large 600 million population of Southeast Asia, with the Asia Pacific area as another catchment area, he said.

    Azharuddin said a MAS-AirAsia partnership could compete with Singapore Airlines (SIA).

    SIA recently merged with its low-cost spinoff airline SilkAir in February, before the height of the pandemic.

    ‘Root of AirAsia’s problems’

    Teoh, a researcher with Imperial College London specializing in aviation, said a merger between AirAsia and MAS would raise airfares over the long term from lack of competition.

    He said while it was not certain if AirAsia would cease operations, any potential exit of low-cost carriers would only affect the tourism industry temporarily.

    New airlines would be created to take the place of insolvent airlines, in a “survival of the fittest” with potential consolidation among existing airlines.

    Teoh said AirAsia management decisions were partly to blame for the airline’s problems. A sale and leaseback policy (in which aircraft was sold and leased back from the buyer) had resulted in higher operating expenses.

    He claimed that since this model was adopted in 2019, “AirAsia has not made an annualized profit”.

    RM5 billion raised from the sale of aircraft was then redistributed to shareholders as special dividends from December 2018 to August 2019, a move which cost AirAsia’s long-term financial health and resilience.

    Hedging on fuel prices at the end of 2019 had caused the airline to lock in its fuel costs, Teoh added.

    “They are not able to benefit from the cheap oil prices that we see today,” he said.

    “This is expected to result in a very large derivative loss in their coming financial statement.”

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  • Singapore Airlines, Silkair and Vistara to expand codesharing to international flights

    Singapore Airlines, Silkair and Vistara to expand codesharing to international flights

    Passengers traveling with Singapore Airlines (SIA), Silkair and Vistara will have more international flight options as the Singaporean flag carrier and its regional arm, Silkair, signed an agreement with Indian carrier Vistara to expand codesharing to international routes.

    Under the expansion of an existing codeshare agreement which covers Indian domestic flights, SIA and Silkair will add nine new codeshare destinations within India on Vistara-operated flights. The following destinations will be added: Chandigarh, Dibrugarh, Jammu, Leh, Pune, Raipur, Ranchi, Siliguri and Srinagar. SIA will add its ‘SQ’ designator code to Vistara’s new international flights.

    Vistara will add its ’UK’ designator code to SIA and Silkair-operated flights between Singapore and eight destinations in India, including Ahmedabad, Bengaluru, Chennai, Cochin, Hyderabad, Kolkata, Mumbai and New Delhi. As part of the arrangement, Vistara will codeshare on services to more than 40 destinations from Singapore to Australia, New Zealand, Cambodia, Indonesia, Malaysia, Vietnam, Thailand, Taiwan, Japan and the US.

    “These codeshares will be implemented in phases and are subject to regulatory approvals,” reads a press release from the airline.

    “We’re happy to deepen this strategic partnership which means a more seamless flying experience for travelers from India to destinations across Asia, Oceania and the United States,” said Vistara’s chief strategy officer Vinod Kannan.

    The codeshare flights will progressively be made available through SIA and Vistara booking channels once necessary regulatory approvals are obtained, according to the airline.

    Vistara is a joint venture between Singapore Airlines (SIA) and Indian company Tata Sons. It will begin its first international flights by offering daily flights to Singapore from Delhi and Mumbai operated by a Boeing 737-800NG aircraft, starting 6 and 7 August respectively.

    Earlier this year, Vistara signed a codeshare agreement with United Airlines. This agreement expanded the US carrier’s network to over 20 destinations throughout India. Over the past two years, Vistara has also signed codeshare deals with Japan Airlines, British Airways, as well as Singapore Airlines and Silk Air.

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  • Tigerair and SilkAir were merged into Scoot and Singapore Airlines

    Tigerair and SilkAir were merged into Scoot and Singapore Airlines

    Creating a more simple model was the main motivation behind Singapore Airlines whittling the number of its brands from four – Scoot, Tigerair, SilkAir and Singapore Airlines to just two: Scoot and Singapore Airlines.Singapore Airlines CEO Goh Choon Phong spoke about the reasons driving the consolidation of its brands during a session discussing the portfolio strategy of the airline at the first Skift Forum Asia.

    In response to a question from Skift airline weekly editor Madhu Unnikrishnan on the decision to wind down SilkAir, Goh pointed to the fact that SIA at one stage had four airline brands – two low-cost carriers (Tigerair and Scoot) and two full-service airlines (Singapore Airlines and SilkAir) across short, medium and long haul routes. He said, “It was not the most efficient way to address connectivity.”

    And so the decision to merge Tigerair into Scoot and SilkAir into Singapore Airlines to “simplify the model”, said Goh.

    Asked whether SIA was contemplating a more premium offering under the Scoot brand, Goh said: “Our model is to keep things pure. Singapore Airlines and Scoot offer two ends of the spectrum. We can compete and win in those segments.

    “Anyone in between will have a hard time.”

    Goh also addressed why SIA first opted to start a low-cost offering. He said: “10 years ago, we realized low-cost carriers were a structural and not a cyclical change.

    “We decided to be involved for two key reasons: without a low-cost carrier, we could not participate in that growth.

    “Also, they made it difficult for us to operate as a short-haul carrier. There were many hugely successful examples of full-service airlines setting up low-cost options. Most of these were done to serve smaller cities.”

    Given Singapore’s city-state status, this was not an option, said Goh, who added that Scoot was created to work as seamlessly as possible with the main brand. It was the right decision on hindsight. Goh pointed out that low-cost carriers now accounted for over 50% of traffic in the region.

  • SilkAir boosts Phuket-Singapore flights

    SilkAir boosts Phuket-Singapore flights

    SilkAir, the regional wing of Singapore Airlines, will add a sixth daily service between Phuket and Singapore from May to meet growing demand for travel between Singapore and Thailand. SilkAir currently operates five flights per day on the popular Singapore-Phuket route, and a sixth will be introduced with effect from May 24, noted a release announcing the new flights.

    “The new service will be operated by Boeing 737 aircraft, which feature both Business and Economy Class cabins. Customers can look forward to a full-service experience, including in-flight meals, wireless in-flight entertainment on SilkAir Studio, complimentary baggage allowance as well as through check-in if they are connecting to or from another SilkAir or Singapore Airlines point via Singapore,” the release noted.

    The additional service, MI760, will depart Singapore at 9:50am (Singapore Time) and arrive at Phuket at 10:45am (Phuket Time).

    The return flight will operate as MI759, departing Phuket at 11:35am (Phuket Time) and arriving in Singapore at 2:20pm (Singapore Time). (See schedule below.)

    As the regional wing of Singapore Airlines, SilkAir extends the SIA Group’s network by seeding and developing new destinations in the Asia-Pacific, noted the release.

    The airline took to the skies in February 1989 as Tradewinds the Airline, before evolving into SilkAir in 1992. In its early days, it catered to passengers holidaying in exotic destinations in the region, including Phuket and Tioman. As the carrier developed, regional business destinations such as Phnom Penh, Yangon and Kuala Lumpur were added.

    Today, the full-service airline operates about 400 weekly flights to 49 destinations in 16 countries.

  • Singapore Airlines And SilkAir To Codeshare On Scoot Flights

    Singapore Airlines And SilkAir To Codeshare On Scoot Flights

    Singapore Airlines (SIA) and SilkAir customers can now enjoy more choice and convenience when travelling to more than 130 destinations across the SIA Group network as a result of new codeshare agreement with the Group’s low-cost subsidiary Scoot.

    Under the agreement, SIA will progressively add its ‘SQ’ designator code while SilkAir will add its ‘MI’ code to Scoot-operated flights between Singapore and more than 30 destinations1 served only by Scoot within the SIA Group. The codeshare arrangements will begin with Scoot flights serving Athens, Clark, Gold Coast, Hat Yai, Ipoh, Krabi, Kuching and Palembang. The new agreement will enable SIA and SilkAir customers to travel on single-ticket itineraries to these codeshare destinations, which means that their boarding passes and baggage tags will be issued up to their final destination at the first point of check-in, according to Singapore Airlines.

    In addition to through check-in service, SIA and SilkAir customers will be offered Scoot’s FlyBagEat privileges – which include checked baggage allowance, complimentary meal and beverage as well as blanket for flights above four hours. SIA and SilkAir customers will also be offered the flexibility to select seats on Scoot flights online through the SIA and SilkAir websites when booking their tickets, for a fee, in accordance with Scoot’s terms and conditions.

    The codeshare flights are subject to regulatory approvals. Tickets will be progressively made available through the various booking channels.

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  • Vistara announces codeshare with Singapore Airlines and Silkair

    Vistara announces codeshare with Singapore Airlines and Silkair

    Singapore Airlines (SIA) and regional subsidiary SilkAir announced today that they have signed an agreement to codeshare on Indian domestic flights operated by Vistara, with effect from today.

    “Under the agreement, SIA will add its ‘SQ’ designator code to Vistara-operated flights beyond Mumbai and New Delhi to 10 destinations within India. SilkAir will add its ‘MI’ designator code to Vistara-operated flights beyond Bengaluru and Kolkata to six destinations within India,”

    SilkAir will add its ‘MI’ designator code to Vistara-operated flights beyond Bengaluru and Kolkata to six destinations within India,” said a release from the airlines.

    The codeshare agreement is Vistara’s first with another airline group, as well as SIA’s and SilkAir’s first with an India-based domestic carrier. As a result of the agreement, four new destinations will be added to the SIA Group’s India network, namely Bhubaneswar, Goa, Guwahati and Port Blair. SIA Group airlines currently serve 15 destinations in India from Singapore, the release added.

    This partnership would also contribute to Vistara’s topline by bringing in passengers on to its network.“As we continuously work towards eventually becoming a globally renowned airline, codeshare partnerships will play a very important role in helping us get closer to realizing that aspiration. Customers booked on any of the classes on Singapore Airlines and SilkAir will find an equally world-class experience when they travel within India, given Vistara’s service and operational excellence,” Phee Teik Yeoh, Chief Executive Officer, Vistara was quoted in the release.

    Members of SIA’s and Vistara’s frequent flyer programmes, KrisFlyer and Club Vistara, will also enjoy additional tier benefits as a result of the new codeshare partnership. PPS Club and KrisFlyer Elite Gold members will enjoy lounge access, increased baggage allowance, and priority baggage handling, check-in and boarding when travelling on Vistara-operated flights. Likewise, Club Vistara Platinum and Gold members will enjoy the same benefits when travelling on SIA- operated flights. PPS Club and KrisFlyer members will also earn Elite miles when travelling on SIA codeshare flights operated by Vistara.

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  • SIA to support Indonesia’s tourism campaign under new partnership

    SIA to support Indonesia’s tourism campaign under new partnership

    National carrier Singapore Airlines and Indonesia’s Ministry of Tourism on Thursday (Apr 28) announced a partnership to boost foreign tourist arrivals into Indonesia.

    Both parties signed a memorandum of understanding at the National Coordination Tourism Meeting in Jakarta on Thursday, and they will work to finalise details of the partnership in a memorandum of cooperation at a “later date”, the joint press release said.

    Under the three-year partnership, SIA will support the ministry’s tourism campaign “Wonderful Indonesia”, which aims to attract 20 million foreign tourist arrivals annually by 2019.

    Joint activities will include advertising and other campaigns to promote travel to Indonesia via Singapore from key source markets, which include China and India for the first year of collaboration, the press release said.

    SIA, together with its subsidiary SilkAir, serve 13 cities in Indonesia with more than 150 weekly flights, the airline said.

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