BankBazaar Singapore – January 4, 2018
SINGAPORE: The airline had said on Wednesday that it will levy a surcharge on tickets booked from Singapore with credit cards.
In today’s circular, a copy of which was accessed by The Strait Times, SIA has informed its sales agents and business partners of a u-turn in its decision. It has said that the plan to charge a credit card surcharge for tickets booked under the newly introduced Economy Lite class has been put on hold till further review. Economy Lite passengers are eligible for discounted tickets.
Many feel that the decision to put the implementation of the new plan on hold comes in anticipation of a backlash from prospective customers.
The airline has refused to comment on any further query related to the matter.
SIA had informed its sales agents and business partners in the country that effective from 20 January 2018, it would introduce a credit card service fee (CCSF) equal to 1.3% of the total (all-inclusive) ticket fare, capped at S$50, for tickets issued in Singapore. Applicable on all routes to and from Singapore, this surcharge would have impacted flyers travelling in the discounted Economy Lite class.
For someone booking a ticket using a combination of KrisFlyer miles and credit card, the surcharge would have only been levied on the portion charged on the credit card. With SIA’s decision to not go ahead with its controversial move, most customers flying out of Singapore can breathe easy.
Although controversial, SIA isn’t the first airline in Singapore to impose a credit card fee on air ticket bookings. The practice is quite common among many budget airlines in Singapore, most notably Jetstar, Scoot and AirAsia.
While it may be a little unconventional for a full-service carrier to charge credit card charges on ticket bookings, it isn’t unheard of. British Airways, Emirates, Qantas and Air France have already set the precedent.
Starting from 2016, Singapore Airlines has been charging a credit card fee on air tickets for routes out of countries like Netherlands, New Zealand, Australia, Belgium and the United Kingdom.