Published:
Are SIA's disparate brand strategies counterproductive?
Analysts believe Singapore Airlines has little expertise to run Scoot and Tiger.
Here's more from CIMB:
No quick solutions available
SIA's response to the increasingly fragmented passenger travel market has been to offer four disparate brand strategies – long-haul full service (main carrier), short-haul full service (SilkAir), long-haul low cost (Scoot), and short-haul low cost (Tiger).
However, SIA has little expertise with the latter two and has also yet to begin inter-lining service to prevent the loss of passengers to other LCCs. Meanwhile, although Silkair continues to grow, we think that profitability is likely to stagnate as LCCs ramp up capacity even further.
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