SilkAir brand gets merged into SIA after US$100m cabin revamp

SilkAir will be merging with Singapore Airlines (SIA) after it undergoes an investment programme of more than US$100 million to upgrade its cabin products as part of a multi-year initiative. SIA’s spokesperson confirmed to Marketing that the SilkAir brand will no longer exist after the merger.

When asked if there will be any personnel changes, especially in the marketing department, the spokesperson said these aspects of the integration are currently under review to ensure a smooth transition for its staff and operations.

The cabin upgrades are expected to commence in 2020, after which the merger will only take place after a sufficient number of aircraft have been fitted with the new cabin products. SIA’s spokesperson confirmed to Marketing that the SilkAir brand will no longer exist after the merger.

“Following a detailed review, it was determined that upgrading SilkAir’s cabin products and eventually merging it into SIA will help strengthen and enlarge the SIA Group’s short-haul offerings, enhancing benefits to our customers,” the spokesperson added.

Meanwhile, the cabin revamp will see the SilkAir aircrafts be fitted with new lie-flat seats in business class, and the installation of seat-back in-flight entertainment systems in both business class and economy class. This will ensure closer product and service consistency across the SIA Group’s full-service network.

According to SIA CEO Goh Choon Phong, SIA is one year into its three-year transformation programme and the announcement is a “significant development” to provide more growth opportunities and prepare the group for an even stronger future.

“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,” Goh added.

Launched in 1989, SilkAir was initially known as Tradewinds the Airline before being renamed in 1992. As the regional wing of SIA, it focused on holiday destinations in Southeast Asia, before expanding across Asia to a full-fledged, full-service regional carrier. Last year, the airline appoint Y&R to handle its regional creative account, while Burson Cohn & Wolfe (previously known as Burson-Marstellar) was handed the PR account.

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