SIA scraps plan to charge credit card fees for flights out of Singapore

Singapore Airline aircraft sit on the tarmac at Changi Airport. (PHOTO: Reuters)

Just a day after Singapore Airlines (SIA) announced that it would start charging credit card fees for selected flights departing from Singapore – a move that incurred some public backlash –, the national carrier has decided “not to proceed with (its) implementation”.

In a circular issued on Thursday (4 January) to its sales agents and business partners, SIA wrote that it would not proceed with the charges “following a further review”. No further explanation was given for the decision.

SIA had earlier this week announced on its website that a 1.3 per cent non-refundable credit card surcharge, capped at $50, would be imposed from 20 January for the airline’s new Economy Class “Lite” flights. This stipulation has since been removed from their website.

The fee, however, will still apply to routes departing from Australia, Belgium, the Netherlands, New Zealand and the United Kingdom.

“When you use a credit card to pay for your flights out of certain countries, Singapore Airlines incurs costs relating to the acceptance of credit cards,” said the SIA website.

For flights departing from Credit card service fee (per ticket)
Australia 1.35 per cent of the total amount, capped at A$70
Belgium / Netherlands 1.65 per cent of the total amount, capped at 20 euros
New Zealand 1.70 per cent of the total amount, capped at NZ$70
United Kingdom 1.00 per cent of the total amount, capped at £20

The fees were rolled out for flights departing from Australia on 1 November 2016, and 3 April last year for flights out of Belgium, the Netherlands, New Zealand and the United Kingdom.

Last month, SIA announced that a revised airfare pricing structure would also kick in on 20 January, which includes new fare types for Economy, Premium Economy and Business flights.

Under the new scheme, customers will be charged US$5 (S$6.70) per flight segment for advanced seat selection on Economy Class “Lite” flights on both SIA and SilkAir.

“The revision of the fare types is to offer clearer choices to different customers to suit their travel needs,” said a Singapore Airline spokesperson.

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