SIA set to introduce new rules in bid to boost revenues

This article is more than 12 months old

Travellers planning to fly on Singapore Airlines (SIA) or SilkAir ought to book their tickets fast.

From Jan 20, new rules will kick in that could lead to fare increases for some travellers.

One change likely to affect many economy travellers is a new charge - a minimum of US$5 (S$6.70) per flight sector - imposed for those who wish to pick seats in advance.

The new charge will apply to those who buy the cheapest, discounted seats, SIA and SilkAir said in a joint announcement yesterday.

However, seat selection will still be available in advance at no charge for families with children 12 years old, and under in the same booking.

Those who do not want to pay the charge can pick whatever seats are available when check-in opens, typically up to 48 hours before a flight.

The tweaks will also see a reclassification of fare types to Lite, Standard and Flexi tickets.

Customers will also have three seat types to choose from: standard; forward zone seats or those near the doors; and extra legroom seats (previously known as preferred seats), which are near the emergency exits, for example.

The new fare rules also include changes to mileage accrual for some travellers.

For those flying premium economy, mileage accrual will be reduced from 110 per cent to 100 per cent for those who buy standard fare tickets and increased from 110 per cent to 125 per cent for those who pay the highest Flexi fare.

Mileage accrual will increase to 150 per cent for Business Class travellers on the Flexi fare type and be set at 125 per cent for Standard and Lite fares. For Suites and First Class, mileage accrual will increase to 200 per cent.

There will also be changes to cancellation and fare refund policies.

The changes clearly intend to help SIA boost revenues in a challenging environment, say industry analysts.

Travellers like Mr Ian Zee, though, are not happy.

The technology analyst, 33, said: "I'm already paying a premium by flying SQ and now they are levying an extra charge, like a budget carrier. If I want to fly budget, I can just fly a budget airline."

Despite that, experts do not expect the changes to have a significant impact on demand for SIA flights.

Dynasty Travel's director of marketing communications Alicia Seah said: "Travelling two, even three times a year, has become the norm for many Singapore residents, including those who fly on SIA. I don't expect that this will change."