Why does Silk Air operate as a separate entity?

[FN-GM]

Hello,

This might seem like a stupid question to some of you, but as Silk Air is a full service airline, why isn't it integrated into SQ? Why is it run as a separate airline?

Thanks

[SQflyergirl]

I don't know the answer specifically to this question, but generally - companies do this for a multitude of reasons - the list below is by no means exhaustive (just what I can think of at 7.30am )

1) tax
2) ownership laws
3) employee contracts
4) brand strategy
5) risk mitigation (from a litigation standpoint)

[milehighj]

OP, while MI is indeed a "full service" when compared to TR, AK, et. al., are you saying that MI's and SQ's hard products and servicing offerings are equivalent, and come with the same capital and operating cost base?

[concept|infinit]

OP, while MI is indeed a "full service" when compared to TR, AK, et. al., are you saying that MI's and SQ's hard products and servicing offerings are equivalent, and come with the same capital and operating cost base?

That's the issue to answer your question, FN-GM
Around SIN, there are many secondary cities like Makassar or Chiang Mai that cant command much of a premium.

If SQ mainline were to serve them, they would have to cut back on the service, eg serve them with a A320 narrowbody, no Krug in J, a smaller meal in Y- that would dilute the very "premium" brand SQ commands. So their response 25 years ago was to create something of a "medium service" carrier that offers more than LCCs (esp on reliability) while being competitive for the markets they serve

[HUGE AL]

...no Krug in J...

There's Krug in J?!?

[kapitan]

maybe... just saying....

deleted..... sorry...

[milehighj]

maybe... just saying....

deleted..... sorry...

[MAN Flyer]

I don't know the answer specifically to this question, but generally - companies do this for a multitude of reasons - the list below is by no means exhaustive (just what I can think of at 7.30am )

1) tax
2) ownership laws
3) employee contracts
4) brand strategy
5) risk mitigation (from a litigation standpoint)

6) To p*ss non-KF *A Golds off

[gumption]

Is Silkair's lower cost base also due to the fact that their crew do not layover at foreign stations? I think SQ wld put up their crew at hotels for stations of flights of more than 4hours. So for Male, SQ crew would layover for one night but MI crew will do a turnaround.

I've always wondered if MI crew also operate Darwin and Carins as turnaround flights. These flights are so long and there is no crew rest area in the narrowbody planes.

[ycp81]

Is Silkair's lower cost base also due to the fact that their crew do not layover at foreign stations? I think SQ wld put up their crew at hotels for stations of flights of more than 4hours. So for Male, SQ crew would layover for one night but MI crew will do a turnaround.

I've always wondered if MI crew also operate Darwin and Carins as turnaround flights. These flights are so long and there is no crew rest area in the narrowbody planes.

Cairns is the only station where MI crew has a layover. As for their longest turnaround, I believe it is Kathmandu (almost 5hrs each way).

[259850]

Cairns is the only station where MI crew has a layover. As for their longest turnaround, I believe it is Kathmandu (almost 5hrs each way).

KTM is the longest turnaround, WUH is the second. I was on WUH-SIN a few months back and was chatting with one of the cabin crew about this. I'm not sure how they're managing KTM these days as the return flight makes a technical stop in CCU due to the fuel shortage in Nepal.

[ycp81]

KTM is the longest turnaround, WUH is the second. I was on WUH-SIN a few months back and was chatting with one of the cabin crew about this. I'm not sure how they're managing KTM these days as the return flight makes a technical stop in CCU due to the fuel shortage in Nepal.

Heard crew on the flight are laying over in CCU at the moment. Interesting layover destination!

[KC*]

If I am not mistaken, SilkAir was started in the 1970s (ie before the current concept of budget airlines came about).

I think it arose out of Tradewinds (using chartered aircrafts from SQ) which provided affordable air and hotel package tours to the nearby countries around Singapore.

To keep costs affordable to the lower end of the casual traveller, it did not have on-board entertainment and F&B offerings were simpler. As Tradewinds proved to be quite popular, the airline was formed. I am not sure if it was wholly owned by SQ then but I think it was but to avoid diluting the image of SQ, it was kept as a separate entity.

It appeared to be an early "budget" airline concept but not as bare-bone as some of today's budget airlines.