Airlines SilkAir to be merged into Singapore Airlines

As part of the merger, Singapore Airlines will invest more than $100 million to upgrade the wholly owned subsidiary’s cabins with new lie-flat seats in Business Class, and the installation of seat-back in-flight entertainment systems in both Business Class and Economy Class. The investment should ensure closer product and service consistency in Singapore Airlines network.

Aircraft cabin upgrades are expected to start in 2020 due to lead times required by seat suppliers, including to complete certification processes. The merger should take place only after a sufficient number of aircraft have been fitted with the new cabin products.

Additionally, there will also be transfers of routes and aircraft between the different airlines in Singapore Airlines portfolio.

“Importantly, it will be positive for our customers. It is another example of the major investment we are making to ensure that our products and services continue to lead the industry across short-, medium- and long-haul routes,” said SIA CEO, Goh Choon Phong.

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, mostly South East Asian countries.

The announcement of a merger is another step in the Singapore Airlines approach to develop a new brand concept. The airline group announced the merger of its former two low-cost subsidiaries Tigerair, which operated short- and medium-haul flights, and Scoot, which focused on medium- and long-haul flights, into a single brand with the name Scoot. The former concept of having two different operational platforms for short-, medium- and long-haul flights in the low-cost and the traditional airline segment will be replaced by one Scoot as one low-cost carrier and Singapore Airlines as network airline.