<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>SIA charges much more than others to redeem air miles
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><DIV class=story_text><!-- more than 4 paragraphs -->THE collaboration between different airlines and credit card companies in the offering of air mile/point rewards could be very complex if they were to ensure equitable award values across participating partners.
It is therefore reasonable to assume that this would not be the objective of the schemes. The business traction would be for the schemes to operate in a simple manner so that it is easy to use and the reward redemption is flexible among alliance partners.
As these are free awards offered to loyal customers, most of us, including me, do not scrutinise surcharges and delivery costs that have to be paid when we redeem miles for the awards, be it free air tickets, services or merchandise.
We believe that all charges are based on the fair assessment of costs incurred by the airline on which the flight is taken or the merchant delivering the reward service or merchandise.
Recently, I redeemed my air miles in my United Airlines (UA) frequent flier programme for a return trip last month between Singapore and Chicago. The trip was made on All Nippon Airways (ANA), a Star Alliance partner. UA charged a total of $51, all inclusive.
Subsequently, I wanted to use my Singapore Airlines (SIA) air miles for a repeat trip this month. As SIA is less connected in that part of the world, I decided to use my SIA air miles on ANA flights - in fact on exactly the same flights as before. In addition to a greater number of miles required for the same trip, SIA charges $305 for fuel surcharge and taxes.
When approached regarding the higher surcharge and taxes, SIA's response was: "The difference in taxes is due to the fuel surcharge that is applicable for KrisFlyer award tickets. While we understand that fuel surcharge is waived when redeeming award tickets with UA Mileage Plus, we regret that we are unable to comment further on our partners' policies. We hope for your kind understanding on this matter."
The reply was the same as what was given by the ticketing officer over the phone. The question raised was not answered.
Why is the surcharge 500 per cent more when no SIA flights are involved? Is this a hidden service charge for the redemption booking done via the SIA office? Or is it a cost recovery mechanism for its frequent flier programme?
Is this not double charging, considering that air miles are awarded through purchases of SIA tickets in the first place? Or is this a way to make money from its Star Alliance partners?
SIA prices itself as a second-to-none airline. With an already higher pricing at ticket level, it charges more for award tickets. I wonder if this is the spirit of a loyalty programme.
From a business standpoint, this could well be an SIA strategy to optimise its Star Alliance collaboration at the expense of its loyal customers.
Sylvia Lee (Mrs)
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</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><DIV class=story_text><!-- more than 4 paragraphs -->THE collaboration between different airlines and credit card companies in the offering of air mile/point rewards could be very complex if they were to ensure equitable award values across participating partners.
It is therefore reasonable to assume that this would not be the objective of the schemes. The business traction would be for the schemes to operate in a simple manner so that it is easy to use and the reward redemption is flexible among alliance partners.
As these are free awards offered to loyal customers, most of us, including me, do not scrutinise surcharges and delivery costs that have to be paid when we redeem miles for the awards, be it free air tickets, services or merchandise.
We believe that all charges are based on the fair assessment of costs incurred by the airline on which the flight is taken or the merchant delivering the reward service or merchandise.
Recently, I redeemed my air miles in my United Airlines (UA) frequent flier programme for a return trip last month between Singapore and Chicago. The trip was made on All Nippon Airways (ANA), a Star Alliance partner. UA charged a total of $51, all inclusive.
Subsequently, I wanted to use my Singapore Airlines (SIA) air miles for a repeat trip this month. As SIA is less connected in that part of the world, I decided to use my SIA air miles on ANA flights - in fact on exactly the same flights as before. In addition to a greater number of miles required for the same trip, SIA charges $305 for fuel surcharge and taxes.
When approached regarding the higher surcharge and taxes, SIA's response was: "The difference in taxes is due to the fuel surcharge that is applicable for KrisFlyer award tickets. While we understand that fuel surcharge is waived when redeeming award tickets with UA Mileage Plus, we regret that we are unable to comment further on our partners' policies. We hope for your kind understanding on this matter."
The reply was the same as what was given by the ticketing officer over the phone. The question raised was not answered.
Why is the surcharge 500 per cent more when no SIA flights are involved? Is this a hidden service charge for the redemption booking done via the SIA office? Or is it a cost recovery mechanism for its frequent flier programme?
Is this not double charging, considering that air miles are awarded through purchases of SIA tickets in the first place? Or is this a way to make money from its Star Alliance partners?
SIA prices itself as a second-to-none airline. With an already higher pricing at ticket level, it charges more for award tickets. I wonder if this is the spirit of a loyalty programme.
From a business standpoint, this could well be an SIA strategy to optimise its Star Alliance collaboration at the expense of its loyal customers.
Sylvia Lee (Mrs)
<!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><DIV class=vclear><!---vbbTime (Thread ID: 18602) - Start : Wed, 8 Apr 2009 05:51:51:856---><SCRIPT language=javascript>function readCookieVbb() { var errorString = getURLParam("error"); user=getCookie("HTTP_user_id") luser="" if (user!=null) { luser=user.toLowerCase() if (luser == "anonymous" || luser == "anonymous|anonymous") { window.location= p_logoutLink; } } if(user != null && user !=0 && luser!=null && luser != "anonymous" && luser != "anonymous|anonymous") { document.writeln("<table border='0' width='100%' cellspacing='0' id='story_comments' style='display:none'>") document.writeln("<tr id='comments_body' style='display:none'><td colspan='2'>") document.writeln("<table border='0' width='100%' cellspacing='0'>") document.writeln(" <tr ><td class='heading'>Latest comments</td></tr>") document.writeln(" <tr><td id='messageDisplayRegion' width='100%'></td></tr>") document.writeln(" <tr><td align='right'>» Offensive? Unsuitable? Report comment
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