SINGAPORE (Nov 22): Singapore Airlines (SIA) says its low-cost carrier, Scoot, will be taking over a number of SilkAir’s routes over the next two years – as well as transferring some of its services to existing destinations served by SIA and SilkAir, the group’s regional wing.

Customers with existing bookings will be provided the option to switch to the new Scoot, SIA or SilkAir flights where possible, or be provided refunds.

The move comes ahead of an impending merger of SilkAir into SIA that will see the upgrading of SilkAir’s cabin products with an investment of over $100 million.

These changes are the result of a detailed review to identify which airlines in the SIA Group portfolio are best suited to meet evolving customer demand, says SIA in its announcement on Thursday.  

Between April 2019 and 1H 2020, Silkair’s routes for cities in Laos, India, China, Malaysia and Indonesia will be transferred to Scoot. The transfer of Chang Mai in Thailand, an existing Scoot destination, will take place in Oct next year.

Scoot’s routes for Bengaluru and Chennai in India, which are both existing SIA destinations, will be transferred to SIA in May 2019 and May 2020, respectively.

Meanwhile, Scoot will be transferring its Shenzhen (China) and Kochi (India) routes to Silkair from June and Oct 2019. Both are existing SilkAir destinations.

Additionally, SIA says SilkAir will be converting its Mandalay route to a seasonal service. Existing services will end in Mar 2019 and will resume in Nov 2019, continuing until Jan 2020.

“We are now at the half-way mark in our three-year Transformation Programme, and today’s announcement represents another significant development. The route review will strengthen the SIA Group for the long term, with the right vehicles in our portfolio of airlines deployed to the right markets,” says SIA CEO, Goh Choon Phong.

Shares in SIA closed flat at $9.30 on Wednesday.