Singapore Airlines To Merge With Regional Carrier SilkAir
Singapore Airlines will merge with its SilkAir unit in 2020 after a major cabin makeover gets underway at the regional carrier.
The cabin upgrade will more closely align the regional product with the parent airline’s long-haul product. Business class will get lie-flat seats, and both Business and Economy classes will get seat-back in-flight entertainment systems.
The upgrade, which will cost more than SGD$100 million, is not due to start until 2020 because of the long lead times required by seat suppliers.
Merging SilkAir into the parent airline “will take place only after a sufficient number of aircraft have been fitted with the new cabin products,” the country’s flag carrier said in a statement.
As part of the merger, some routes and aircraft will be transferred between the airlines.
“Singapore Airlines is one year into our three-year Transformation Programme and today’s announcement is a significant development to provide more growth opportunities and prepare the Group for an even stronger future,” the airline’s chief executive Goh Choon Phong said.
“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.”
SilkAir currently serves 49 destinations in 16 countries and is part way through the process of phasing out its Airbus A320 fleet, replacing them with Boeing 737s.