Singapore budget airline Scoot sees profitability over the long haul
Singapore medium-long haul budget carrier plans to upgrade fleet to fuel-efficient B787s as it targets mainland as the next growth market
Campbell Wilson, chief executive of Singapore Airlines' subsidiary Scoot, likes to talk about his "scootitude" and how he reconciles low-cost with quality products on long flights.
Wilson, 44, moved within the Singapore Airlines (SIA) Group to launch and manage Scoot, its medium-to-long-haul low-cost carrier, in May 2011 after an 18-year career with the group in various locations including Hong Kong.
Scoot, which flies routes of five to eight hours from Singapore, completes the group's four-brand strategy, with Singapore Airlines and SilkAir respectively tackling the long-haul and short-haul full service markets and partly owned subsidiary Tigerair targeting the short-haul low-cost market.
Currently flying a fleet of six Boeing 777 jumbo jets, Scoot will be one of the first budget carriers with a fleet consisting exclusively of the fuel-efficient Boeing 787 Dreamliners when it takes delivery of the first of 20 it ordered later this year.
While most low-cost carriers go for the short-haul market, which is easier to enter but more saturated, Scoot is in a segment with its unique challenges that are also opportunities, said Wilson, who spoke to the South China Morning Post before the crash of AirAsia QZ8501 on December 28.
"Not everyone can start a medium-to-long-haul low-cost carrier," he said. "You need to have the right hub, you need to have deep pockets, and you need to fly to the right places."