Singapore Air has shocked the travel industry with the announcement that it will establish a wholly-owned low-cost airline for medium and long-haul flights.

This is in contrast to its positioning as one of the globe's best luxury airlines. 

The new airline, yet to be named, will start operating within the next year.
 
Goh Choon Phong, chief executive of Singapore Airlines, said: “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.”