Singapore Airlines Faces Backlash Against Scheduled Credit Card Fees On Flights Ex Singapore, Drops The Plan!

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Singapore Airlines had announced two days ago that they would begin to charge a 1.3% credit card fee on ticket purchases for flights ex Singapore and has face a massive backlash from the public.

The responses and media coverage was so overwhelmingly negative that the carrier decided to withdraw the implementation of said plans to levy the surcharge.

On January 3rd 2017 SIA’s Singapore based page displayed that they would charge a 1.3% credit card fee on all their Economy Lite fares effective January 20th 2018.

Since then the carrier has been swamped with negative comments on social media and related reports in news (online & print) media as well.

Apparently the carrier felt the heat and decided to withdraw from their decision as per a recent Channel News Asia report (access here).

Singapore Airlines (SIA) has cancelled its plan to charge credit card fees for flights departing from Singapore booked under certain classes, amid a backlash from customers over the move.

In a sales circular issued to its sales agents and business partners on Thursday (Jan 4), the national carrier said it has decided not to proceed with the implementation of the fee “following a further review”.

Just a day earlier, SIA had issued a circular stating that it would start charging the fee from Jan 20 onwards for selected booking classes.

The 1.3 per cent fee would be based on the total cost of the booking, capped at a maximum charge of S$50 per passenger, and would apply to tickets issued under the airline’s soon-to-be-launched Economy Lite category.

SIA had said that the non-refundable fees were to recover “costs relating to the acceptance of credit cards”.  …

This is the memo which has been distributed to their distribution and corporate partners:

It’s not unusual that airlines charge credit card fees, especially among in the European carriers and actually even Singapore Airlines already charges a credit card surcharge in some markets.such as New Zealand, Australia, UK (among others).

Conclusion

Good for Singapore’s consumers that they were able to push SIA to abandon their plan to fleece customers even more. Paying for an airline ticket via credit card is not only very common but has always been a traditional way of purchasing a ticket, especially for business travelers.

It’s simply a cost of doing business having to swallow payment transaction fees. I wonder if SIA is bleeding profits so badly that they now have to resort to such methods.

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