Scoot CEO sanguine about 2023, amid ‘robust’ forward bookings and China reopening
Tay Peck Gek
SINGAPORE Airlines ’ budget arm Scoot is optimistic about demand in 2023 as it is seeing “robust” forward bookings, and China’s reopening provides opportunities for it to further scale up its capacity.
Scoot’s chief executive officer Leslie Thng said at the Singapore Airshow Media Roundtable – which took place in a virtual format on Tuesday (Feb 7) – that he is aware of the economic headwinds such as the rising cost of living and interest rates as well as higher fuel prices.
Thng noted: “(In) 2023, we remain optimistic that demand will continue to be robust because that is what we are seeing – the need for people to travel for work, for leisure, is there. People want to explore exciting destinations as well.”
His confidence was also underpinned by the “strong” forward bookings Scoot is seeing. Furthermore, China’s reopening is a tailwind for the budget airline to scale up operations. Scoot served 57 destinations as at end-December.
Despite its competitors being challenged by a dearth of resources, ranging from inflight crew to ground staff, Scoot has been able to ramp up its capacity to about 80 per cent of pre-pandemic levels. By contrast, the capacity of other carriers in the Asia-Pacific have been restored to only some 50 per cent of pre-pandemic levels.
This is because Scoot has kept its core team and ensured that crew members were updated on their skills during the pandemic. Its competitors cut their staff drastically, some by as much as 25 per cent, in comparison.
Thng said that Scoot currently has a larger fleet of 55 aircraft. Before the pandemic, it had 49. This has also helped it to scale up operations promptly.
He noted the importance of engaging aircraft makers so as to ensure both the manufacturers and Scoot are aligned in terms of expectations and delivery, as key makers Airbus and Boeing are beset by supply chain disruptions. “We have to make sure that we are kept abreast of the latest developments so that we remain flexible in terms of our adjustments,” he added.
