SIA and SilkAir to fold surcharges into base airfares

Singapore Airlines and its regional arm SilkAir will fold fuel and insurance surcharges into their base airfares. Both airlines have already been showing the full price payable in their airfare advertising, inclusive of taxes and surcharges, since 2008. With the removal of the fuel and insurance surcharges as a separate component, customers will be presented with a single base airfare when purchasing tickets. This will not result in immediate changes to “all-in” fares, which will continue to be determined by market supply and demand, but is intended to provide a more simplified fare structure for customers. The folding in of fuel and insurance surcharges into base airfares will be implemented progressively by region, starting from 28 March 2017. It is expected to be completed by May 2017. Fuel and insurance surcharges will also no longer apply to KrisFlyer frequent-flyer programme redemption bookings with effect from 23 March 2017. Other changes will be made to the KrisFlyerprogramme with effect from the same day, including the removal of a 15 per cent discount for redemption bookings made online rather than via the call centre.