Singapore Airlines has decided to give money back to its customers flying on its lowest fares to London and its European destinations next year if it comes out with even cheaper offers before they fly.
This is going to have ‘consequences.’
Airlines hate giving cash back to customers. They prefer to concoct $50-$100 rebooking fees out of thin air, and then keep the balance as a ‘credit’ that expires very quickly and can only be used to buy another fare on their services, subject of course to several volumes of conditions resembling a simplified guide to the GST for farmers.
What the Singapore Airlines initiative really means is that despite the administrative costs of its new arrangements for its cheapest fares (including $1950 returns to London) it is determined to keep its very strong position on the kangaroo routes no matter what Emirates or Qantas or Cathay Pacific or especially AirAsia X might do.
The details of the deal will be circulated to travel agents and placed on the Singapore Airlines site this morning. Note that it is offering to refund the differences that might arise on its own cheapest fares not those of its rivals and that its claimed reason for doing this is to remove consumer uncertainty.
Consumers now have the certainty of an extended fare war on the route.
