Silkair, the regional wing of Singapore Airlines, will be subsumed by its parent company’s brand after a large investment of around $74.4 million, adding new lie-flat seats in business class and seatback entertainment systems for business and economy.

The merger will create “closer product and service consistency across the SIA Group’s full-service network,” SIA said.

Silkair will upgrade its cabins beginning in 2020, with the merger expected to follow once a “significant number of aircraft” have been retrofitted with the new products. Some routes and planes will be transferred between the two carriers after the merger.

“Singapore Airlines is one year into our three-year Transformation Programme and today’s announcement is a significant development providing more growth opportunities and preparing the Group for an even stronger future,” said Goh Choon Phong, CEO, Singapore Airlines. “Importantly, it will be positive for customers. It is another example of the major investment we are making to ensure that our products and services continue to lead the industry across short-, medium- and long-haul routes.”