Credit card service fee to be implemented on Singapore-based booking from 20 Jan 2018

[flyguy]

this flip-flop is a marketing hazard, a reflection of over confidence or under estimation. What has led to it?

Of course the CEO must approved it first - however such cost cutting and trying to up its markup by resorting to such budget airlines methods is not good for SIA, as it will make the premium carier loses its USP and become just like any other carriers and cannot distingushed itself from others no matter whether they are international airlines or not. However having said that it will not be a surprised if SIA now "hides" its additional charges like credit card and seat selection into the total fare and mask these charges from the passengers.

[flyguy]

however in thelast decade SIA senior management and its CEO did make some decisions which have affected the carrier's profitability as then SIA decided to concentrate on its premium market ie on expanding in its first class and business class, and its disastrous fuel hedging during the high oil prices which took SIA much longer to recover from the lower oil prices than some carriers. And now we can see how SIA is downsizing its First class/suites in its aircraft by more than half its seats and to introduce a premium economy class. And it would be foolish for SIA to further alieniate its "faithful"economy class passengers by introducing all sorts of budget airline methods, including even cutting down on the quality of meals, to raise its fares for its economy class.

[MAN Flyer]

What a bizarre episode. You do wonder what goes on inside SQ at times.

[SQfanatic]

post deleted

[CarbonMan]

An analysis of by ST's Ms Kaur on why SQ is doing what they are doing:

http://www.straitstimes.com/opinion/...new-way-to-fly

"Unbundling", which allows firms to charge for specific items, not only allows for a bigger customer base but also makes total sense from the revenue management perspective, financial experts say.

This is especially so in the competitive aviation business, with airlines in the region making an average of just US$5.50 for every passenger flown.

I agree with this statement:

Even as it pursues a portfolio strategy to corner all segments of the air travel market, SIA must be mindful to maintain a clear brand distinction between full-service premium and budget, especially on routes that both SIA and Scoot serve.

A good way to do this is to maintain a high level of in-flight service and to constantly upgrade aircraft cabin products across all classes.

As SIA evolves to survive in a new world, it must always remain a great way to fly.