As per aviation analysts, Singapore Airlines decided to launch long-haul budget carrier within one year using wide body aircraft. It has become necessary for the airline because of growing pressure at both ends of the market.

It has been announced on Wednesday by the airline that it has plans to hit the region's growing appetite for budget air tickets on medium-to long-haul destinations.

Four years ago, Malaysia's AirAsia X was launched which dominate the sector and flies into 14 cities including London, Tehran, Paris, Seoul and Tokyo as well as destinations in China, India and Australia.

The airline has plans to commence its wholly-owned but independently managed low-cost operation within one year.

Singapore airlines profits are getting disturbed by its rivals like Hong Kong's Cathay Pacific and Gulf carriers like Emirates and Etihad in the middle of intensifying competition in first and business class travel. It has been analyzed by the analysts that SIA gets 40-50 percent of its revenue from the higher end of the market.

SIA, one of the world's richest airlines with a cash reserve of around Sg$7.0 billion ($5.7 billion), has the ability to start a new airline from scratch and if everything goes as planned, it would definitely reap huge profits to SIA.