SINGAPORE: Budget airline Scoot is set to expand its operations significantly this year, adding four to six new destinations to its route network.
This comes on top of two upcoming routes, from Singapore to Vienna in Austria and Iloilo City in the Philippines.
The carrier also plans to acquire 14 to 16 new planes. Four are scheduled arrivals – the remaining four out of nine Embraer E190-E2 jets – while the rest will be “a mix” of other aircraft models such as the Airbus A320 narrowbody.
The new destinations will be announced at a later date after Scoot has finalised plans, chief executive officer Leslie Thng told the media during a sit-down interview last Monday (Mar 3).
The airline has already surpassed pre-pandemic operational levels by 5 per cent in the last financial year, and Mr Thng is confident that 2025 will see even stronger growth.
He emphasised that the airline's expansion is driven by strategic opportunities and operational feasibility, including securing necessary landing slots and permits.
“We're still working on (the details). For new flights and new destinations, there's a whole process that we need to go through, not just to look at projected demand, we also need to see whether we can operationalise,” he said.
Scoot's new Embraer E190-E2 plane. (Photo: Scoot)
The airline is shifting its focus towards Southeast Asia, dedicating about 25 per cent of its resources to routes in the region this year, up from 20 per cent last year.
This is in response to China’s slower-than-expected recovery and heightened competition in the market.
Recent fleet additions such as the new Embraer aircraft that arrived last year have enabled Scoot to launch new services to Koh Samui in Thailand and Sibu in Malaysia. It has also increased its frequencies to destinations like Hat Yai and Krabi in Thailand, and Kuantan and Miri in Malaysia.
Scoot has resumed 80 per cent of its pre-pandemic operations in China, despite ceasing flights to cities like Jinan and Ningbo. It has also added Shantou as one of its destinations.
The airline sees strong outbound potential from China, particularly to Southeast Asian destinations.
“The market is still strong, it's just that (there is) more competition,” said Mr Thng. “We are still able to achieve a quite good market share.”
Initiatives like the mutual visa-free scheme, which allows citizens of Singapore and China to enter each other's country without a visa for up to 30 days, have attracted more Chinese visitors to Singapore, Mr Thng said.
“We believe that many of the destinations that we fly to will be attractive as well as appealing to the Chinese consumers,” he added.
However, Scoot's growth plans have faced challenges, including the grounding of six Airbus A320neo jets due to a manufacturing defect in aerospace manufacturer Pratt & Whitney's engines.
Pratt & Whitney parent RTX announced in 2023 that a rare defect could lead to the cracking of some engine components and had called for inspections that could lead to the grounding of 600 to 700 of Airbus jets globally between 2023 and 2026.
This has led Scoot to extend its lease on six A320ceos, though Mr Thng declined to reveal for how long. It has also added five new Embraer jets to its fleet to compensate for the disruption.
Supply chain delays in engine maintenance have also led to longer turnaround times compared to before the pandemic. This could lead to delays in departure times, he said.
To mitigate disruptions, Scoot has built resilience into its operations, including deploying additional flights to assist stranded passengers.
“For example, in some delays when the aircraft are not able to fly back to Singapore, sometimes we fly a ferry flight to the final destinations to bring back the passengers,” he said.
Mr Thng acknowledged that being upfront about delays is important. “In the event of a delay, Scoot will try to be as transparent as possible to make sure that we inform the passengers the reason as well as the duration,” he said.
The airline will provide “as much assistance” as possible, he said. Other than a possible ferry flight, Scoot may also provide food and beverages or a complimentary night's stay.
Addressing speculation about Scoot's shift towards a full-service model, Mr Thng said the low-cost carrier business model is still “the right one for us”.
“We still want to provide the options for customers to choose,” said Mr Thng. For instance, customers can choose add-ons like baggage check-in, in-flight meals, extra legroom and flexible flight dates.
“So if you prefer to travel on Scoot with a backpack, without any check-in baggage, without any requirement for food and beverages, you can just buy a fare-only ticket. And that will be the cheapest option for the consumer,” he said.
These options have become part and parcel of the budget airline experience, and customers are familiar with it since the business model came into the local market over two decades ago.
Providing these ancillary products and services also helps to grow Scoot’s appeal in the region, said Mr Thng.
“We have invested quite a lot within Southeast Asia now, so definitely, it is in our plan and our goals to carry more passengers,” he said.
This includes passengers from new destinations that Scoot previously could not serve due to limited sales and marketing efforts in those markets. By expanding its outreach, the airline aims to highlight its ability to connect travellers not just to Singapore, but a broader network of destinations beyond.
“From a network perspective, it's no longer just point to point, but maybe via Singapore to the final destinations,” he said.
“So these are things that we look at holistically to see how we can continue to improve.”
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This comes on top of two upcoming routes, from Singapore to Vienna in Austria and Iloilo City in the Philippines.
The carrier also plans to acquire 14 to 16 new planes. Four are scheduled arrivals – the remaining four out of nine Embraer E190-E2 jets – while the rest will be “a mix” of other aircraft models such as the Airbus A320 narrowbody.
The new destinations will be announced at a later date after Scoot has finalised plans, chief executive officer Leslie Thng told the media during a sit-down interview last Monday (Mar 3).
The airline has already surpassed pre-pandemic operational levels by 5 per cent in the last financial year, and Mr Thng is confident that 2025 will see even stronger growth.
He emphasised that the airline's expansion is driven by strategic opportunities and operational feasibility, including securing necessary landing slots and permits.
“We're still working on (the details). For new flights and new destinations, there's a whole process that we need to go through, not just to look at projected demand, we also need to see whether we can operationalise,” he said.
Scoot's new Embraer E190-E2 plane. (Photo: Scoot)
FOCUS ON SOUTHEAST ASIA
The airline is shifting its focus towards Southeast Asia, dedicating about 25 per cent of its resources to routes in the region this year, up from 20 per cent last year.
This is in response to China’s slower-than-expected recovery and heightened competition in the market.
Recent fleet additions such as the new Embraer aircraft that arrived last year have enabled Scoot to launch new services to Koh Samui in Thailand and Sibu in Malaysia. It has also increased its frequencies to destinations like Hat Yai and Krabi in Thailand, and Kuantan and Miri in Malaysia.
Scoot has resumed 80 per cent of its pre-pandemic operations in China, despite ceasing flights to cities like Jinan and Ningbo. It has also added Shantou as one of its destinations.
The airline sees strong outbound potential from China, particularly to Southeast Asian destinations.
“The market is still strong, it's just that (there is) more competition,” said Mr Thng. “We are still able to achieve a quite good market share.”
Initiatives like the mutual visa-free scheme, which allows citizens of Singapore and China to enter each other's country without a visa for up to 30 days, have attracted more Chinese visitors to Singapore, Mr Thng said.
“We believe that many of the destinations that we fly to will be attractive as well as appealing to the Chinese consumers,” he added.
GROWTH CHALLENGES
However, Scoot's growth plans have faced challenges, including the grounding of six Airbus A320neo jets due to a manufacturing defect in aerospace manufacturer Pratt & Whitney's engines.
Pratt & Whitney parent RTX announced in 2023 that a rare defect could lead to the cracking of some engine components and had called for inspections that could lead to the grounding of 600 to 700 of Airbus jets globally between 2023 and 2026.
This has led Scoot to extend its lease on six A320ceos, though Mr Thng declined to reveal for how long. It has also added five new Embraer jets to its fleet to compensate for the disruption.
Supply chain delays in engine maintenance have also led to longer turnaround times compared to before the pandemic. This could lead to delays in departure times, he said.
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To mitigate disruptions, Scoot has built resilience into its operations, including deploying additional flights to assist stranded passengers.
“For example, in some delays when the aircraft are not able to fly back to Singapore, sometimes we fly a ferry flight to the final destinations to bring back the passengers,” he said.
Mr Thng acknowledged that being upfront about delays is important. “In the event of a delay, Scoot will try to be as transparent as possible to make sure that we inform the passengers the reason as well as the duration,” he said.
The airline will provide “as much assistance” as possible, he said. Other than a possible ferry flight, Scoot may also provide food and beverages or a complimentary night's stay.
STICKING TO THE BUDGET MODEL
Addressing speculation about Scoot's shift towards a full-service model, Mr Thng said the low-cost carrier business model is still “the right one for us”.
“We still want to provide the options for customers to choose,” said Mr Thng. For instance, customers can choose add-ons like baggage check-in, in-flight meals, extra legroom and flexible flight dates.
“So if you prefer to travel on Scoot with a backpack, without any check-in baggage, without any requirement for food and beverages, you can just buy a fare-only ticket. And that will be the cheapest option for the consumer,” he said.
These options have become part and parcel of the budget airline experience, and customers are familiar with it since the business model came into the local market over two decades ago.
Providing these ancillary products and services also helps to grow Scoot’s appeal in the region, said Mr Thng.
“We have invested quite a lot within Southeast Asia now, so definitely, it is in our plan and our goals to carry more passengers,” he said.
This includes passengers from new destinations that Scoot previously could not serve due to limited sales and marketing efforts in those markets. By expanding its outreach, the airline aims to highlight its ability to connect travellers not just to Singapore, but a broader network of destinations beyond.
“From a network perspective, it's no longer just point to point, but maybe via Singapore to the final destinations,” he said.
“So these are things that we look at holistically to see how we can continue to improve.”
Continue reading...