Singapore Airlines’ (SIA) underperforming regional subsidiary SilkAir is set to undergo restructuring after completion of a S$100m ($75m) cabin upgrade programme.
The multi-year programme will be carried out to replace SilkAir’s current cabins with new lie-flat seats in business class, and to install seat-back in-flight entertainment systems in both business class and economy.
The programme aims to streamline the product and service across SIA’s full-service network.
It is scheduled to begin by 2020 due to the lead-times required by seat suppliers.
After upgrading sufficient numbers of aircraft, SIA will absorb SilkAirby.
SIA will also transfer routes and aircraft between its airlines in line with the company’s ongoing efforts to optimise the network.
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By GlobalDataSIA CEO Goh Choon Phong said: “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.
“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.”
With the transformation programme, SIA aims to reduce costs and increase revenue in the wake of competition from Chinese and Middle Eastern rivals and low-cost airlines, reported Reuters.
Currently, SilkAir operates a fleet of 11 Airbus A320-family aircraft and 22 Boeing 737-800 and 737 MAX 8 aircraft, serving 49 destinations in 16 countries.
The airline is also currently transitioning itself into an all-737 fleet.
