A Tiger tale

Clearly, the thinking amongst SIA’s senior management team at Changi Airport headquarters was that things would be even more seamless if the two units merged under a single brand. It also means the new, enhanced Scoot will be better able to compete with the aggressive no-frills heavyweights in the region, carriers such as Malaysia’s AirAsia, the Philippines Cebu Pacific, Indonesia’s Lion Air, Vietnam’s Vietjet and, of course, Qantas’ Jetstar.

It also means Scoot will evolve from a relatively small airline – it previously operated 14 Boeing B787s and 23 Airbus A320s (with six more B787s and 39 A320s on order) into a heftier operation with a wider network. Tiger’s two A319-100, 21 A320-200, four B787-8 and four B787-9 have all been transferred to Scoot. The merger in July was the culmination of a nine-month process after both carriers had agreed to pursue a single brand and operating licence under the enhanced Scoot brand. Tigerair’s last flight departed Singapore for Tiruchirappalli, India on July 24.

“The new Scoot will be better able to compete with he aggressive no-frills heavyweights.”

Scoot chief executive Lee Lik Hsin said the integration would further strengthen the group’s position. “As we come to the end of Tigerair’s journey, we open up a brand new chapter for Scoot,’’ said Scoot chief executive Lee Lik Hsin.

“Building on what Tigerair and the old Scoot had achieved since their respective inceptions, 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.’’

Underpinning the post-integration growth plan, he also announced five new destinations that Scoot will launch by June next year. Among them are Honolulu, Scoot’s maiden U.S. destination, and Harbin in northeast China, both expected to come on line before the end of this year. The remaining three are short-haul destinations: Kuching and Kuantan in Malaysia and Palembang in Indonesia.

Coupled with the addition of the previous Tigerair network, the five new services will bring Scoot’s total destination count to 65 across 18 countries, up from 60 destinations in 17 countries. The Honolulu service from Singapore will be made via Osaka, with four flights a week planned. The airline’s flights from Singapore to Harbin are scheduled for three times weekly. Both Honolulu and Harbin will be served by B787 Dreamliners.

At the same time as the merger was completed Scoot unveiled new crew uniforms, intended to help enhance the carrier’s brand. And it has changed its “Get Outta Here!” tagline and adopted a new slogan, “Escape the Ordinary”.

Lee said the new slogan is more relevant to the global market as the airline’s network has grown, adding that it “appeals to our inner wanderlust and inspires us to travel and explore the world”.

So far, only one Tigerair A320 has been rolled out in the Scoot livery. The remainder will be progressively repainted and the livery change is expected to be complete by mid-2018.

There are other implications in the marriage, particularly for full service operators such as Qantas. Effectively, Scoot now becomes a network carrier, albeit a budget one. It launched flights to Athens in June and an increasing number of B787s will give it the opportunity to add more European destinations (the Middle East is also on its radar). It has already been attempting to milk Australian travelers offering cheap flights to Greece, via Singapore, from major hubs such as Sydney, Perth and Melbourne.

Add the expected re-entry with new Airbus A350s onto the Kangaroo Route by AirAsia X – it flew to London and Paris but withdrew in the face of high airport charges and the fact its aircraft, then Airbus A340s, were expensive to operate – and it will add more competitive pressure to the already congested and fiercely fought over Australia-Europe marketplace.

With its strengthened network Scoot will potentially be able to do the same with the massive Chinese market, offering cheap flights from Australia into a number of Chinese destinations by way of Singapore. But then again, mainline airlines are now no strangers to the ebbs and flows of a volatile market and the ever-increasing expansion of budget operators, both short and long-haul.