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Thursday, 4 June 2009

Flight Centre vs Singapore Airlines

Source: The Australian Frequent Flyer

Singapore Airlines have circulated a controversial email last month stating that their tickets will no longer be available for purchase via Flight Centre travel agents.

This email had the AFF rumour mill working overtime and it has recently been confirmed that the staunch is indeed a commission-based standoff.

The Flight Centre perspective is that they will cease selling tickets for airlines that undercut Flight Centre prices on their individual websites.

Singapore Airlines have so far remained tight-lipped regarding the issue and have merely notified their members that there is a commercial impasse with Flight Centre.

The forum buzz is that Singapore Airlines have whittled the travel agents commissions down so low that Flight Centre are losing out when having to honour their lowest fair guarantee. Further, it is alleged that Singapore Airlines hold back on a large proportions of their inventory to sell themselves at prices that travel agencies cannot better unless they accept practically no commission.

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