SIA flying the other way: entering long-haul budget carrier market

But its Malaysian competitor is not worried, saying businesses should stick to what they know best.

Singapore Airlines, known for its high-quality cabin service, has set out plans to enter the long-haul budget carrier market through a new subsidiary in a move regarded as a reversal from the strategy of the previous management.

A Reuters report said new SIA Chief Executive Officer Goh Choon Phong’s predecessor Chew Choon Seng “had questioned whether the budget carrier strategy could be successfully applied to long-haul routes, noting that passengers on 13-hour flights would expect to be served meals and enjoy some degree of comfort and entertainment.”

Goh defended the plan, saying low-fare airlines help stimulate demand for travel and that they expect this will also prove true for longer flights.

Meanwhile AirAsia X, the long-haul budget carrier unit of Malaysia's AirAsia, is said to be not threatened. On Twitter AirAsia Chief Executive Tony Fernandes said, "Not worried. They should be worried. Their p and l (profit and loss statement) going to hurt. Business(es) should stick to what they know best.”

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