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Singapore Airlines to absorb its regional subsidiary SilkAir

Full-year profit surges to seven-year high, boosted by business travel demand

SilkAir's fleet will be upgraded before the brand is merged with parent Singapore Airlines. (Courtesy of SilkAir)

SINGAPORE -- SilkAir, Singapore Airlines' 29-year-old subsidiary, is to be merged with its parent, as a part of the carrier's wide-ranging business transformation. The move is aimed at maximizing revenue by streamlining the brand strategy and standing out from the crowded low-cost carrier market.

"We do believe that with the merger, and with the single-brand, it will make it much easier for customers to understand [that both SilkAir and Singapore Airlines] belong to the same organization," Singapore Airlines Chief Executive Goh Choon Phong told reporters on Friday. It will be "easier", Goh said, to sell to American and European customers connecting flights via Singapore to SilkAir's various Asian destinations. It is about offering "better connectivity", he stressed.

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