Malaysia remains as key market for low-cost airline Scoot — CEO

SINGAPORE (May 7): Scoot Pte Ltd, the low-cost carrier of Singapore Airlines Ltd (SIA), commenced operation of its first Embraer E190-E2 aircraft on Tuesday, reiterating the crucial role of Malaysia in its airline operations.

Scoot chief executive officer Leslie Thng said that this is due to the geographical proximity between Singapore and Malaysia which provides good connectivity for passengers in both countries.

“I think Malaysia has been an important market for Scoot because we are close neighbours,” Thng told a media roundtable prior to the launch of the new aircraft.

The budget airline currently flies to eight destinations in Malaysia, including Kuala Lumpur, Ipoh, Penang, Langkawi, Kuantan, Kota Kinabalu, Kuching, and Miri, with flight frequencies of about 90 times a week across the country.

Meanwhile, the new E190-E2 aircraft will add Sibu as its new destination starting in June.

Thng also expressed the airline’s interest in expanding its fleet operations in the Subang Airport, officially known as Sultan Abdul Aziz Shah Airport.

“Subang Airport, of course, [it] is one that we would be interested in. But it depends on when Subang Airport is open for jet operations. Because at this moment, it’s only restricted to turboprops,” he said.

It is noted that Scoot plans to expand its E190-E2 fleets up to five new destinations in the second half of 2024 — from six currently; three in Malaysia (Sibu, Kuantan and Miri) and three in Thailand (Koh Samui, Hat Yai and Krabi).

“The E190- E2 is really to provide better network connectivity for us within the region. At this moment, what we have announced that we will be in Southeast Asia,” he said.

“Once we receive more aircraft with the new destinations that we have planned and have in mind, we will definitely make the announcement in due course,” he added.

Scoot has purchased nine E190-E2 aircraft, of which it has received two aircraft, while another three will be delivered by the second half of this year, and the remaining four are expected to be delivered by 2025.

Last week, Malaysian Transport Minister Anthony Loke said that Subang Airport would be able to handle jet aircraft by the third quarter of 2024.

Subang Airport is currently undergoing a redevelopment as part of the RM1.3 billion Subang Airport Regeneration Plan (SARP) to transform the old airport into a city airport.

Singapore’s low-cost airline Scoot seeks to maintain profitability amid higher competition