What a New Surcharge From Singapore Airlines Could Mean for Other Carriers
Skift Take
It used to be just the European carriers that made bold statements like this against legacy distribution giants. Not anymore.
Singapore Airlines has become the latest carrier to nudge corporate travel agencies towards using the so-called New Distribution Capability channel when purchasing tickets, by bringing in a $12 penalty for bookings made on global distribution systems.
In an email to its trade partners on July 2, it said it will implement the surcharge from January 4, 2021, beginning in Singapore, Indonesia, Australia, New Zealand, UK, Germany and Switzerland, with other regions to be announced at a later date. Tickets issued through the New Distribution Capability channel will not incur the distribution fee.
The announcement comes at the same time as European carriers weigh their own distribution strategies. However, those discussions have been ongoing and Singapore Airlines' announcement represents new territory on two fronts.
"Not including Qantas, this is the first surcharge in Asia," said Jorge Diaz, CEO and founder of online aggregator AirGateway. "It sends a signal to the rest of the industry: this could turn into a global trend. They're put
