Scoot to possibly tie up with Tiger

Do you wonder how the two LCCs will complement one another?

SIA’s new mid-to-long haul low cost carrier (LCC) Scoot recently announced it will be flying to Bangkok starting from Jul 2012, which according to OCBC Investment Research baffled investors by competing directly with the group’s 33%-owned associate Tiger Airways (TGR) in a short haul route.

However, SIA CEO revealed that, without interfering with the management of TGR, the group is looking at increased collaboration between the two LCCs.

OCBC analyst Eric Teo notes that while the proposed collaboration should get easier since both LCCs will be flying out of Terminal 2 at Changi Airport starting from Sep 2012, it is still unclear as to how the two LCCs will complement each other.