Singapore Airlines' decision to launch a long-haul budget carrier is a risky but necessary gamble as it comes under growing pressure at both ends of the market, aviation analysts said.
Analysts estimate that SIA gets 40-50 per cent of its revenue from the higher end of the market.
"Low-cost carriers, even for long haul, is the way forward," said Julius Yeo, a Singapore-based aviation analyst with Frost and Sullivan consultancy.
"The downside is the worry about diluting the SIA brand but the good part is they are willing to take the risk," said Yeo. Full story
