Singapore’s Scoot spreads its wings
Singapore-based airline Scoot is considering expansion into Cambodia and Laos as a next step after launching five new routes yesterday, the company’s chief commercial officer Leslie Thng said.
The destinations launched at a press conference in Singapore yesterday include Honolulu – Scoot’s maiden foray to the United States – and Harbin in Northeast China. The remaining three are short-haul destinations – Kuching and Kuantan in Malaysia, and Palembang in Indonesia. Flights will begin operating between later this year and the first half of next year.
While Scoot was not ready to announce further routes, it was interested in expanding in Indochina where it already services in Vietnam, Myanmar and Thailand, Thng said.
“Laos and Cambodia will be the next destinations – in the next year or the next three years from now, depending on demand in the market,” he said
The company was also looking at new routes to Thailand, with destinations that may be finalised over the next year.
He added that the company already held a 49 per cent stake in a joint venture firm NokScoot.
“We do not plan to expand our investment in Nok or NokScoot at this time,” Thng said, although he noted that Nok Air had been looking for a new investor.
Meanwhile, Scoot’s total revenue target for the fiscal year April 2017 to March 2018 is expected to increase up to 15 per cent after the company completed its merger with Tigerair.
The merged airlines now operate under a single brand and one operating licence. The final Tigerair Singapore flight departed Singapore for Tiruchirappalli at 11.05pm on Monday. 24 July.
All previous Tigerair flights will be branded Scoot, and all flights will operate under the TR flight designator code.
The Scoot-Tigerair integration process began in May last year when the airlines were brought under a common holding company, Budget Aviation Holdings, Scoot’s chief executive officer Lee Lik Hsin said at the press conference yesterday.
As of the end of this fiscal year on March 2017, Scoot had total passenger numbers of 8 million, bringing its total since establishment in 2012 to 50 million.
The company’s net profit in the 2016-17 fiscal year was reportedly 67 million Singapore dollars (Bt1.647 billion).
Thng said the company planned to add 45 aircraft to its fleet between now and next year. This would serve a projected doubling of business growth in terms of total revenue and number of passengers over the next five years.
Currently, Scoot has 37 planes, including both Boeing and Airbus aircraft, and serves 60 destinations in 17 countries. With the addition of the new routes, it will serve 65 destinations in 18 countries.
