Krisflyer revises rates on Award tickets

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Last night, Krisflyer began sending emails to members advising of changes to Krisflyer redemption rates. There are basically three sets of changes being made:

  • The 15% discount for redemption and redemption upgrade bookings made through the website and mobile channels will be discontinued.
  • Krisflyer will be removing Fuel and insurance surcharges from all Award tickets on Singapore Airlines and SilkAir operated flights.
  • The Saver Award charts have been revised. This has resulted in an increase in the number of points required for some Awards

The changes are slated to kick in from March 23, 2017, which gives a little time to get in before the changes are made.

As the changes interact with each other, you really needs to look at the bigger picture to see the overall effect. There is no doubt that the revisions to the Saver Award charts, and the removal of the discount are negatives. On the flip side, the removal of the fuel and insurance surcharges is a positive.

Removal of 15% discount for online bookings

Krisflyer has long given a 15% discount when booking the Award flights online. As of March 23, this discount will no longer apply.

They are not the first airline to drop this discount. Malaysia Airlines had a similar discount in its Enrich program which was removed last year. In the end, they have largely fallen into line with most of the industry in not offering the discount.

Removal of Fuel Surcharges

Krisflyer will be removing the need to pay fuel surcharges from Award bookings. This change is in line with changes in Singapore Airlines to fold fuel surcharges into the basic ticket price across all fares.

Fuel surcharges on Singapore Airlines were typically middle of the road, as far as they go. Having said that, they could result in the need to pay a significan cash component when making an Award redemption. On a typical booking between Australia and Europe, they could easily run into hundreds of dollars.

Award chart Revisions

Finally, to the changes that will see an increase in the number of points required for Saver Awards. The  old award chart and the new award chart can be found at the relavant link.

The changes to the points requirement varies with the actual zones you are travelling between. Indeed, there are instances where there is no change between the new chart and the old chart. In these cases, you will only lose out on the loss of the 15% discount, which will be offset by the removal of the fuel surcharge.

On the other hand, travel between some of the zones will come with mor significant increases in the number of points required. The following table gives some examples of the changes that are in store. Do note, however, that the removal of the 15% discount reflects as an 18% increase in the Award rates.

Singapore Airlines Saver Awards Business Class
(One-way)
First Class
(One-way)
New Current
(with 15% Discount)
Change New Current
(with 15% Discount)
Change
Between Australia ( Perth & Darwin) and Singapore 32,500 27,635 4,865 (18%)
Between Australia (excl. Perth & Darwin) & New Zealand and Singapore 58,000 46,750 11,250  (24%) 80,000 63,750 16,250 (26%)
Between Australia (excl. Perth & Darwin) & New Zealand and Singapore 85,000 68,000 17,000 (20%) 115,000 91,375 23,625
Between Australia (excl. Perth & Darwin) & New Zealand and Tokyo 65,875 85,000 19,125 (29%) 80,750 105,000 26,625 (30%)
Between Australia (excl. Perth & Darwin) & New Zealand and USA West Coat 85,000 110,000 25,000 (29%)  119,000 154,000 35,000 (29%)
Between Australia (excl. Perth & Darwin) & New Zealand and London  80.750  105,000 24,250 (30%)  112,625  148.000 35,575 (31%)

 

Summary

While these look like significant increases, they are accompanied by the removal of the fuel surcharge. Overall, then, things are not as bad as they seem on first sight. As an example, the fuel surcharge between Sydney and London comes in at $356.  In return for saving the cash payment of $356, you are looking at an extra 24,250 points for Business or 35,575 points for First.

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About Author

Mark is the founder of FlyStayPoints, and caught the travel bug early in life. He discovered the benefits of travel loyalty programs in 2001, and is always learning how they can make travel better. While work takes him between Perth and Melbourne, he is always plotting his next adventure.