Singapore Airlines is planning to establish a new no-frills, low cost airline operating widebody aircraft on medium and long-haul routes.

The new airline will enable the SIA Group to compete against the growing number of profitable low cost airlines in the region, and cater to the growing demand among consumers for low cost travel.

Operations are expected to begin within one year. The airline will be wholly owned by Singapore Airlines, but will be operated independently and managed separately from SIA.

“We are very excited about what our new low-fare subsidiary will offer to consumers. We are seeing a new market segment being created and this will provide another growth opportunity for the SIA Group,” said SIA CEO Mr Goh Choon Phong. “As we have observed on short-haul routes within Asia, low-fare airlines help stimulate demand for travel, and we expect this will also prove true for longer flights.”

“At the same time we remain fully committed to the further growth of SIA, which will continue to offer the highest-quality products and services to our customers,” added Mr Goh.

Details of the new airline’s management team, branding, services and route network have not yet been unveiled.

Singapore Airlines is currently running a promotion called Singapore Stopover Holiday.

What you receive with this is a one night hotel accommodation at a participating hotel, transfers to and from the hotel, free SIA Hop-On Bus service as well as free admission to various popular attractions, free tea and coffee at Ya Kun and a free Singapore telephone card.

There are additional discounts offered for shopping, dining as well as varying tourist attractions and sightseeing adventures.
This promotion is valid for travel between April 2010 and March 2011.

The offer will also provide free admission to the Sentosa Island Resort, National Orchid Garden, Singapore River Cruise, Jurong Birdpark, Singapore Zoo, Peranakan Museum and the Malay Heritage Centre.

Please note however that the Singapore Stopover Holiday 2010-2011 is not available in India and Thailand and the package is not sold in Japan and China either.

When you arrive at Singapore Changi Airport, you will need to procure your special identification card from the SIA Singapore Stopover Holiday counter.

Do not lose this card as you will need to present this at all participating locations in order to take advantage of the Singapore Stopover Holiday privileges and benefits. Also checkout their upcoming SQ US 2010 promotions.