Singapore Airlines may develop Delhi as long haul network hub

Is also keen to start international operations from India if rules modified

Singapore Airlines might develop Delhi as a hub for its long haul network, analysts and experts have said.

On Thursday, the airline announcing a joint venture (JV) with the Tata Group and would hold 49% in the airline.

“Singapore Airlines’ (SIA) latest investment with Tata Sons on an Indian premium carrier appears to be a double-edged sword. On the plus side, Singapore Airlines has the expertise to create premium products and this deal enables it to tap into India's growth in international travel,” said Hong Kong-based aviation analyst Daniel Tsang.

Furthermore, SIA could use New Delhi to launch new flights to North and South America alongside its Indian subsidiary, while picking up domestic feed traffic at the same time, thereby remedying SIA's network deficiencies, Tsang added.
 

Indian government rules do not allow airlines with less than five years of operations (within India) and 20 planes to fly abroad. There is a move to amend the rule but no decision has been taken yet.



Singapore Airlines has said the JV airline would be keen to start international operations from India if the rules allow it. AirAsia too wants to fly international routes from India. A relaxation in existing rules would benefit both these airline groups.

An industry source said from a strategy viewpoint , SIA's likely focus on international markets from India would be in long haul routes.

“There is a huge demand and only served by two Indian carriers - Air India and Jet Airways. I don't think they (SIA) would jump into a blood bath with AirAsia in the domestic and short haul international market, when there is more money waiting for them in long haul. However, all this depends on how soon the Indian government eases its rules,” he said.

Singapore Airlines did not respond to specific queries emailed to them.

However, in a statement, the airline said, “India's aviation market has been expanding rapidly and we have been eager to participate in this growth story for many years. The new airline would help to stimulate market demand and provide economic benefits to India, while also providing a new growth opportunity for the SIA Group.”