Singapore Airlines and regional arm SilkAir have announced they will fold fuel and insurance surcharges into base airfares.
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. The airline explains this move 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 Redemption bookings on flights operated by other airlines may still include surcharges, with effect from 23 March 2017.
ASATA has welcomed Singapore’s announcement, saying that the position of ASATA on the matter has always been that fuel is a cost of doing business, an inherent part of the airline’s operations, and should be included in the airfare, much in the same was as other operational costs such as captain and flight attendant salaries are.
ASATA strongly advocates a move by all airlines operating within South Africa to also include their fuel surcharges, and any other charges that are under the control of the airline, within the base airfare to eliminate confusion among consumers and provide an all-inclusive transparent air ticket price.
Explains Otto De Vries, CEO ASATA: “Fuel is a cost of doing business and should be included in the airfare. The price the passenger sees should be the price he or she pays and any variations in the cost of an airline ticket should be directly related to the cost of doing business, and supply and demand. Not under the auspices of recovering an elevated cost that is no longer elevated.”