SilkAir to be merged into SIA

SilkAir, the regional wing of Singapore Airlines (SIA) is to undergo a cabin investment programme as part of an initiative that will see the subsidiary merge into SIA.

An investment of more than $100 million will be used to upgrade the wholly-owned subsidiary’s cabins with new lie-flat seats in business class, and see the installation of seat-back in-flight entertainment systems in business and economy class to ensure closer product consistency across SIA’s Group.

The upgrades are expected to start in 2020 but the merger will only take place after a ‘sufficient’ number of aircraft have been fitted with the new cabin products. Specific details will be announced as the programme develops and timelines are finalised.

With ongoing efforts to optimise SIA Group’s network, there will also be transfers of routes and aircraft between the different airlines in the portfolio.

“Singapore Airlines is one year into our three-year Transformation Programme and today’s announcement is a significant development to provide more growth opportunities and prepare the Group for an even stronger future,” said SIA CEO, Goh Choon Phong. “Importantly, it will be positive for our customers. It is another example of the major investment we are making to ensure that our products and services continue to lead the industry across short-, medium- and long-haul routes.”

SilkAir operates a fleet of 11 Airbus A320-family aircraft and 22 Boeing 737-800 and 737 MAX 8 aircraft and is currently transitioning to an all-737 fleet.

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