Business

Budget carrier Scoot on inaugural flight to Sydney

June 05, 2012

MELBOURNE, June 5 — Low-cost carrier Scoot's Boeing 777 touched down in Sydney this morning, offering Australians another daily budget carrier when flying to Singapore.

The airport's chief executive officer, Kerrie Mather, said the new carrier, a subsidiary of Singapore Airlines, would generate A$146 million (RM455 million) a year for the Sydney economy.

"It will also bring close to 400 passengers to Sydney daily. We've already seen low-cost carriers stimulating markets here and internationally," he added, in a statement.

New South Wales Tourism Minister George Souris said Scoot chose Sydney over strong competition from Victoria and Queensland.

Scoot is promising fares 40 per cent below that of full-service airlines and including taxes and surcharges, but not "ancillary" items such as meals, drinks, entertainment and checked luggage.

Its arrival heralds another player in the already competitive long-haul, low-cost carrier market to Australia, serviced by Jetstar International and AirAsiaX.

It also gives Singapore Airlines, which flies to major Australian airports and is a major stakeholder in Tiger Airways Australia, an additional foothold in the Aussie market. — Bernama