The centre for aviation (CAPA) forecasts passenger numbers to grow 15% to almost 10 million for Scoot (now including Tiger) for FY17/18 (ending March 18). With new aircraft & routes to Europe (Athens) & the USA (Hawaii) being added.
A 1% take-up rate could convert to an additional 100,000 subscribers!
Scoot is also the LCC owned by Singapore Airlines.
This deal is a brilliant capitalisation on the deal done with the Scoot/Tiger Staff Union in April last year, and I'm presuming the staff would by now be well versed in operating Flexiroam X, and able to increase traction of the offer.
I'd be interested to know what a qualifies a Scoot customer for the free microchip, but you can bet it will be all the frequent flyers, as well as the business/premium class passengers. Personally, I'd be putting the chip inside the cover of the in-flight magazine with detailed instructions and intructions to ask a crew member if they require assistance.
The WiFi component of the deal has been eagerly anticipated by many shareholders and is in my opinion groundbreaking for Flexiroam. Hopefully it leads to extensions of previous deals with KLM & Korean Air as well as providing us with exposure to other carriers.
Well done Flexiroam!
FRX Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
