27 May 2011

Singapore Airlines to start budget carrier

8:28 am on 27 May 2011

Singapore Airlines plans to start a budget carrier flying across longer distances.

The new airline will start operating within a year, using wide-body aircraft.

Other details, such as its name, planned routes and ticket prices, have not been revealed.

The BBC reports the carrier is expected to compete with long-haul, cut-price Asian airlines operated by Qantas and AirAsia of Malaysia.

The new airline will be based in Singapore and will be wholly owned by SIA.

But it will be operated independently and managed separately from the flag carrier.

SIA already owns Silkair, which operates short-haul flights across Asia.

The BBC reports its prices are more expensive than budget airlines such as Jetstar Asia and Tiger Airways, but are cheaper than flights on SIA.