Singapore Airlines (SIA) has formed a new company, Budget Aviation Holdings, to run it’s low cost airlines – Scoot and Tigerair.
The idea is that the new company will help to integrate the two airlines, and also allow for sharing of important functions such as operations/planning, marketing, sales and admin.
“There are many opportunities ahead for Scoot and Tigerair to work more closely together, which will provide new opportunities for the growth of both airlines for the benefit of our customers,” stated the new CEO of the company.
As per SIA, no jobs will be axed as a result of the move. At the moment, Tigerair has around 850 employees and Scoot has over 900.
However, two key executives decided to quit Scoot – Steven Greenway (Chief Commercial Officer) and Benson Tan (Head of Ground Services).
The combined entity will be led by Tigerair CEO Lee Lik Hsin. The chief executive of Scoot, Campbell Wilson, will move to SIA as acting SVP of Sales and Marketing.
Mr Goh Choon Phong, SIA’s chief executive and chairman of the new entity, said: “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.”
Such a move was expected since November 2015, when SIA made a bid to takeover Tigerair.