Singapore Airlines has cancelled plans to impose a 1.3% service fee for all credit card charges for bookings on the Economy Lite fare on flights departing out of Singapore. As per the sales circular issued by Singapore Airlines below:
This was supposed to come into effect from 20 Jan 2018, and was subject to a cap of S$50.00.
However, this additional service fee would have had a limited impact on the core customer base, due to the following reasons:
- The 1.3% service fee would only apply to Economy Lite fares, which meant that only a small proportion of seats per flight would have been affected by this change. Once Lite fares are snapped up, the bulk of passengers on Standard and Flexi fares in Economy Class would not have this additional service fee imposed on them. Passengers travelling in Premium Economy, Business, First and Suites Classes would not have been affected by the service fee as well.
- Even though the service fee was strictly non-refundable, this would have been a non-issue given that changes to any bookings under the Economy Lite fare are not allowed to begin with.
- The service fee would not apply to all redemption flights. In addition, the service fee would not apply to all added extras, such as preferred seat selection and excess baggage.
- This was not exactly a new intended move. Singapore Airlines currently charges credit card service fees for flights leaving Australia, New Zealand and the United Kingdom. This is in line with other carriers in the competitive aviation industry.
Now that Singapore Airlines has decided to cancel this move, we are all now back to status quo.