Singapore Airlines (SIA) announced Wednesday that it will soon create a budget airline that will cater to cost-conscious travelers flying on medium and long-haul routes.

While the new airline will be wholly owned by Singapore Airlines, it will be operated and managed completely separate from SIA, according to the airline.

The proposed discount carrier will most likely compete with JetStar Airways, the budget unit of Australia’s Qantas Airways.

More details about the new airline’s management team, branding style, and route network are expected to come in the near future. Singapore Airlines said it expects the new airline to be off the ground in about a year.  

Source: Wall Street Journal