Singapore Airlines (SIA) has plans to launch a budget airline to tap into the market demand for low-cost medium- to long-haul flights.

The low-cost carrier, which will be wholly owned by SIA but independently operated and separately managed, will be using wide-body, double-aisle aircraft for the routes. SIA currently also runs a mid-price airline, SilkAir, and owns 32.9% of budget carrier Tiger Airways.

The new airline, which is expected to be positioned above Tiger Airways, will provide stiff competition to airlines such as AirAsia X and Virgin Group. Details for the new airline have yet to be announced but it is expected to be launched within a year.

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