Pricing Structure Star Alliance RTW : Singapore Airlines A380 surcharge

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This topic contains 15 replies, has 9 voices, and was last updated by  antipodes 10 Apr 2018
at 00:29
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  • antipodes
    Participant

    I am hoping that one of the Forum’s experts can explain the reasoning behind Singapore Airlines decision to charge a surcharge for flying in its A380 aircraft given that other airlines that fly the A380 do not see the need to impose a surcharge. In addition the surcharge does not apply to round or one way trips operated by Singapore Airlines only to Star Alliance RTW itineraries and the surcharge applies even if the only aircraft operated on the route by Singapore Airlines is an A380.


    capetonianm
    Participant

    Is it officially a surcharge with appropriate code, or just a higher fare for that routing imposed by not releasing lower fare buckets?


    antipodes
    Participant

    Hello Capetonian

    I am not fluent in the jargon but once you reach the “choose flights” stage of the Star Alliance planner then if you have chosen an SQ flight then you must click on flight details. You will then be shown the type of aircraft used. If it is an A380 you will also be told that a surcharge must be paid and what the amount is.I hpoe this answers your question.


    capetonianm
    Participant

    I find that quite odd. If you end up buying a ticket could you cut and paste a copy of the fare breakdown which shows the base fare and all the taxes and the total and I’ll then be able to answer the question and satisfy my own curiosity.


    AMcWhirter
    Participant

    It would also help if you would provide details like: routing, travel dates and class of travel.

    Although SIA is a Star member it has been known to “do its own thing” from time to time.


    travelsforfun
    Participant

    The Star Alliance website says that for RTW fares, there is a surcharge on Singapore Airlines First Class on the A380 and Business Class on the A380 and 777-300ER, as well as on Asiana Airlines Business Class on certain routes only when flying an A380, 777-300ER, 777-200LR or A350-900.

    http://www.staralliance.com/en/round-the-world?view=tc

    As Alex implies, it wouldn’t be the first time that Singapore Airlines sought an exception to the standard rules for a product it believes to be exceptional.


    AMcWhirter
    Participant

    Thanks for clarifying, travelsforfun.

    I remember the time (may still be the case today) whereby it was difficult if not impossible to redeem FFP points for first class suites on SIA’s A380s.


    KSHaggag
    Participant

    I do believe that SIA ( knowing their inflight product is superior to others ,and I personally agree fully ) is making available on such routes ( flight sectors ) ONLY higher booking classes than the standard ones applicable for RTW fares on all Star Alliance carriers ;this has been quite a common practice by SIA and I do still see it fair ( for SIA ) though it is disappointing for us ,consumers .The A380 SIA product is highly sought after by all passengers who have flown it,so imposing a surcharge ( in our eyes ) on a highly popular product is the best commercial practice by any Revenue Management Team in the Airline Industry .

    Having personally flown SIA recently in Premium Eco on an A380 on FRA/JFK and back ,I can easily defend their practice of surcharging since the product is well worth its salt !!!! It would be unfair to compare it to other airlines offering a PE cabin ..Let alone Business Class …


    philsquares
    Participant

    Can’t really address the J issue but I can give some insight on the F surcharge. I was working at SQ when the 380 was introduced. At that time, not sure about now, when a Captain had to position he was guaranteed a seat in F. That ended when the 380 was introduced. Management as SQ took the position the Suite was R and was not covered under the pilot’s contract. So, since there was no F on the aircraft we were then seated in J. There was a “local” Captain who decided to put the company’s interpretation to the test and found himself looking for a new job. For me, I did very little positioning so I could really care less. That interpretation was still there when I left in 2010.

    SQ has always thought their product was a “cut above” everyone else. True or false really makes no difference as they can charge what they want and will still make money. But, I think they do offer a very good, consistent product.

    Hope that helps.


    paulkaz
    Participant

    Certainly in F,SQ refer to Suites on the A380 even to the check in and boarding signs at the airport. They are replaced with First signs if a 777-300 is in use. The new Suites area is double the size of a 777-300 F seat so explains the surcharge.


    PeterCoultas
    Participant

    The current *A RTW fares have become a joke….when these fares started they were great value at not much more than £ 1000 plus taxes and allowed 29 sectors and stop overs. Now sectors and stopovers are half that and the price has about tripled….


    antipodes
    Participant

    Hello and thank you for your responses. I apologise for the late response which was brought about by my password being deactivated.This happens on a regular basis and if anyone can provide me with a solution; I would be grateful.

    My concern with the surcharge is based on my understanding that SQ fares for First Class and Suites are the same there is no differentiation by way of surcharge. It is only if you are using the Star Alliance RTW package that you encounter the surcharge. This surcharge varies with destination in the case of Melbourne to Singapore the surcharge is in excess of AUD$2000 and AUD900 for Singapore to Beijing. The surcharge is imposed by Singapore Airlines but the ticketing is prepared by Lufthansa on behalf Star Alliance and the airlines involved.
    I am not disputing the quality of service provided but if quality of service is the basis for the surcharge then it should apply to all flights not just RTW flights on the A380.

    I will try to provide details of costings and my thanks to travelisfun for enlightening me about the extent of the surcharges.


    AMcWhirter
    Participant

    antipodes – Another reason is the yield or revenue per sector.

    I suspect a revenue-conscious airline like SIA would dislike taking part in these complex RTW routings because the yield they might earn for a particular sector will probably be much lower than it would earn normally (from a point-to-point passenger).

    That plus the fact that SIA offers a superior premium product would, I believe, answer the question you have raised.


    Flightlevel
    Participant

    My thoughts exactly ‘though you put it much better!
    RTW fares are a sort of discount,and one that SQ don’t need for their suites.
    Reminded of the couple (and two children) who flew around the world in J with SQ and Star for points only (960k) gained from household spending, equivalent to $54k fares. On Get.com – if only we can do that in Uk/EU!


    AMcWhirter
    Participant

    I have checked the price for SIA flights between Singapore (SIN) and Beijing (PEK).

    The one-way first class fare is S$4,114 which converts to AU$4,073.

    The one-way business class fare is S$3,094 which converts to AU$3,064.

    When you consider there can be many sectors within an RTW fare one can understand that, when the revenue is shared between so many Star members, SIA would receive only a fraction of the normal point-to-point fare.

    Even though SIA still imposes a surcharge (Star quotes US$700 for first class) as noted by antipodes SIA still loses out.

    I say that because, according to the rules and regulations set by Star Alliance, RTW travellers have to book using a discount tariff code of A for first and D for business class. It means they do not get the same priority in the booking system as would normal fare travellers.

    http://www.staralliance.com/en/round-the-world?view=tc

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