Singapore Airlines 2014 Annual Report Download - page 43

SCOOT
Scoot ended FY2013/14 carrying more
than two million guests in its first full
year of operations with an average
load factor of about 80 per cent. It
currently operates a fleet of six Boeing
777-200 aircraft, two of which were
inducted in the past financial year.
In the same period Scoot expanded
its network by adding four new
routes in 2013: Nanjing on 3 June,
Seoul on 12 June, Hong Kong on 15
November and Perth on 12 December.
This brings the Scoot network to 13
destinations.
Scoot made further progress in its
alliance with Tigerair by signing an
agreement on 16 December 2013 to
enhance cooperation. It culminated in
the submission of an application to the
Competition Commission of Singapore
(CCS) for anti-trust immunity (ATI)
ATI would allow Scoot and Tigerair
to have joint operations, sales and
marketing of parallel routes. The
approval could see the alignment
of policies, conditions, pricing and
scheduling, paving the way for seamless
integration of both airlines’ systems and
improved connectivity for passengers.
Other developments include a joint
venture with Thai partner Nok Air to
establish a new medium-haul airline
called NokScoot. Nok Air will have a
51 per cent majority share in the new
entity while Scoot will hold 49 per
cent. The new airline is pending Thai
regulatory approval and is expected
to inaugurate its first flight to a North
Asian destination out of Bangkok’s Don
Muang International Airport in 2014.
Looking ahead, Scoot’s focus will
be the formation of NokScoot and
the induction of the Boeing 787
Dreamliner fleet.
Twenty aircraft are on order with
the first 787 scheduled for delivery in
November 2014. A second Dreamliner
is expected to be delivered in
February 2015. With the introduction
of the new 787 aircraft, Scoot will
begin the process of retiring its Boeing
777 fleet. At least one 777 is planned
for retirement in FY2014/15 pending
the 787 induction.
The Boeing 787 Dreamliner has an
estimated 20 per cent improved fuel
burn. Savings from fuel costs could
potentially be passed on to travellers
or in the very least allow Scoot to
continue offering good value airfares.
Converting to the Dreamliners will
give Scoot the option and flexibility
to expand further with the possibility
of increasing flight frequencies or
launching new destinations.
which is pending approval. Once
approved Scoot and Tigerair can build
on the existing interline arrangement,
which currently allows passengers
outside Singapore to benefit by
purchasing tickets involving services
from both carriers. The proposed
enhancements will mean Singapore
residents can do likewise.
Scoot made further
progress in its alliance
with Tigerair by signing
an agreement on
16 December 2013 to
enhance cooperation.
OPERATING REVIEW
041
ANNUAL REPORT FY2013/14