Thursday, May 26, 2011

Tony Fernandes views SIA budget carrier plan as copycat

KUALA LUMPUR: AIRASIA BHD [] chief executive officer''Datuk Seri Tony Fernandes''has viewed Singapore Airlines' proposed budget carrier as a copycat, according to the Singapore-based AsiaOne.com report on Thursday, May 26

It said Fernandes had posted on his personal Twitter account on Wednesday that: "AirAsia staff should be proud that we have been copied again. Will be the same result like tiger."

While SIA has yet to reveal a name for its budget offshoot, Fernandes quipped on Twitter: "Wonder if singapore airlines will call it singapore X."

Reuters reported on Wednesday that SIA entered the long haul budget carrier market by setting up a new subsidiary, which is expected to compete with AirAsia X.

The premium carrier faces competition from other players in Asia and the Middle East that cater to high-end passengers as well as fast-expanding budget airlines in Asia.

The move by Singapore Airlines' new chief executive officer Goh Choon Phong marks a major reversal from his predecessor's strategy.

Goh's predecessor Chew Choon Seng had questioned whether the budget carrier strategy could be successfully applied to long-haul routes, noting that passengers on 13-hour flights would expect to be served meals and enjoy some degree of comfort and entertainment. ' AsiaOne, Reuters

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