SingaporeAir is handing over its Singapore-Jeddah services to low cost subsidiary Scoot from 1 May next year.
It is a text book example of a full service carrier reallocating its resources to participate in high growth low fare opportunities on one hand and getting better returns from jets configured to serve higher fare routes on the other.
Singapore Airlines currently serves Jeddah with three A330-300 returns a week, while the replacement Scoot flight will use 787-8s. The A330s with 285 seats have an older style 30 seat regional business class product, while the Dreamliner wlll have 335 seats, of which 21 sold as ScootBiz are similar in terms of space to a premium economy product.
“Scoot is thrilled to be adding our first Middle Eastern destination to our network,” said Scoot CEO, Campbell Wilson.
“We have long wanted to operate to Saudi Arabia. Jeddah, its second largest city, is both a commercial centre as well as the principal gateway for religious pilgrimages to nearby Mecca. With thrice-weekly non-stop services, Scoot looks forward to improving connectivity between Singapore and this important world city.”
Scoot adds Melbourne to its network from 1 November. The Jeddah initiative could be the start of more substitutions by Scoot for less than optimally performing Singapore Airlines services. However it would also undercut any plans AirASia X might have to tap the Singapore-ME market at the discount end via Kuala Lumpur.
Both Malaysia flag carriers AirAsia X and the as yet not rebranded or relaunched Malaysia Airlines are experiencing difficulties, and an integrated low cost-full service play by Singapore and Scoot will render their recovery plans harder to achieve.