Possible Merger of SIA and MI?
Source:
The Straits Times
Extract of report:
Singapore Airlines (SIA) and its regional arm, SilkAir, have merged part of their finance operations, as part of an ongoing transformation to stave off competition in the industry.
Bringing SilkAir into SIA's fold would make business sense for the group, said Temasek Polytechnic aviation management and services senior lecturer Gary Ho.
"SilkAir as a brand has not had much traction and retiring the brand may actually be a good thing for SIA. The airline can then focus on two distinct brands - SIA in the premium segment and Scoot focusing on the budget market - which are very different and offer very different products and services. This increased clarity will be good for the group," he said.
"I have often heard passengers complaining that they bought an SIA ticket but received a SilkAir product, which is not on a par. This (a merger) will allow SIA to serve many more markets with a consistent product."