SilkAir to upgrade cabins for $100m and merge with SIA

Aircraft cabin upgrades are expected to start in 2020.

Singapore Airlines’ (SIA) regional wing, SilkAir, will go through a $100m investment programme to upgrade its cabin products as part of a multi-year initiative that will ultimately see it merged into SIA.

According to an announcement, the programme requires SilkAir to upgrade its cabins with new lie-flat seats in Business Class and install seat-back in-flight entertainment systems in both Business Class and Economy Class.

Aircraft cabin upgrades are expected to start in 2020 due to lead times required by seat suppliers, including to complete certification processes.

"The merger will take place only after a sufficient number of aircraft have been fitted with the new cabin products. Specific details will be announced progressively as the programme develops and timelines are finalised," SIA added.

Previously, SIA had already merged its financial operations with SilkAir. SilkAir's Revenue Accounting and Overseas Accounting functions are now handled by SIA, whilst its Financial Reporting, Payments and Credit Control functions will remain under its under its control.

There will also be transfers of routes and aircraft between the different airlines in the portfolio.

SilkAir is the regional wing of Singapore Airlines, operating a fleet of 11 Airbus A320-family aircraft and 22 Boeing 737-800 and 737 MAX 8 aircraft. It is currently transitioning to an all-737 fleet, and serves 49 destinations in 16
countries.

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