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
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
(with 15% Discount)
(with 15% Discount)
|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%)|
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.