Singapore Airlines has merged management of its low-cost subsidiaries Tigerair and Scoot – but no jobs will be lost.
SIA has created a holding company called Budget Aviation Holdings which will oversee operations for the two carriers.
Scoot chief executive Campbell Wilson will move to parent Singapore Airlines later this year as acting senior vice president of sales and marketing, while Tigerair Singapore chief executive Lee Lik Hsin will head both carriers as chief executive of Budget Aviation Holdings.
The moves shouldn’t affect Tigerair Australia, which is not owned by Singapore Airlines but is a fully owned subsidiary of Virgin Australia Holdings.
Tigerair Singapore and Scoot are both members of the Value Alliance, a recent development which links eight Asia-based low-cost carriers, including Tigerair Australia. Founding members of the Value Alliance are Tigerair Singapore, Thailand’s Nok Air and NokScoot, Japan’s Vanilla Air, Korea’s Jeju Air, Cebu Pacific of the Philippines, Tigerair Australia and Scoot.
Members consider their new pact will boost their market muscle and help them compete with rival low-cost carrier groups like Jetstar, AirAsia and Lion Air. See: Tigerair and seven other carriers found new alliance
SIA’s new Budget Aviation Holdings company structure will allow for the integration and sharing of key functions, such as in sales and marketing, IT, planning and operations, an SIA statement said.
SIA took full ownership of Tigerair following a general offer that closed on 4 March 2016. The process has now been completed with the recent delisting of the company from the Singapore Stock Exchange.
“We launched our general offer so that we could fully realise commercial and operational synergies between Scoot and Tigerair,” SIA chief executive Goh Choon Phong said. “We are confident that Lik Hsin and his team are up to the task.
“The holding company structure will drive a deep integration of our low-cost subsidiaries, which are important parts of our portfolio strategy in which we have investments in both the full-service and budget aspects of the airline business.”
Goh added: “We also recognise the contribution Campbell has made through his leadership of Scoot since its establishment, successfully developing its corporate culture, brand, route network and fleet, and bringing it to profitability in a short time. We look forward to his return to SIA.”
Written by Peter Needham