Shukor Yusof, an aviation analyst with Standard & Poor's Equity Research, said the purchase will enable SilkAir to expand across the region as it gears up for tougher competition with rivals like Garuda and Lion Air of Indonesia.
"Strengthening SilkAir will enable the carrier to become a bigger regional player and allow parent firm SIA -- which is also facing fiercer rivalry -- to focus on long-haul routes," he told AFP.
"There is a huge intra-Asia travel market that has not yet been tapped and so this would indicate to us that SIA is using SilkAir to compete against the likes of the low-cost carriers in the region," Shukor said.
