Should SIA sell flight credits to weather the Covid-19 crisis?
Many TODAY readers said they would buy flight credits to keep Singapore Airlines going during the Covid-19 outbreak.
Battered by the Covid-19 pandemic, Singapore Airlines (SIA) announced on Friday (March 27) that it would try to raise S$15 billion by issuing new shares to shareholders and 10-year mandatory convertible bonds.
Earlier this week, TODAY reader Leung Wai Hoong suggested that to boost the company’s coffers, it should sell flight credits — valid for up to three years — that passengers may use once the crisis eases.
Many TODAY readers said they would buy flight credits to keep SIA going. Yet others were sceptical, saying that the airline may restrict when passengers can use the credits. Others suggested that the airline sell air miles at a discount.
Brilliant idea. We will be supporting our core businesses in times of need. I have long been prepared to do something like this with businesses that I regularly patronise. SIA should top up the credit amount by 10 per cent. Though a five-year credit validity would be preferred for infrequent travellers plying short-haul routes, a three-year validity would be acceptable. Local hotels, car rental firms and other businesses facing a cash crunch should consider this concept. It will go a long way towards helping them stay afloat. SUNTHERALINGAM VISUVALINGAM
What a great idea. I am saddened to read of our beloved SIA's plight and will definitely buy the credits if they are available. Let us fly SIA or not fly at all. HWANG BIH YI
It seems a great idea, as long as the credits are usable on all flights and in conjunction with other discounts. They must be as good as cash. ANG RY MOH
I have always had great prices from SIA and I love the service. I will support this move if the price is good. RUTH ONG
It is good to be creative and flexible in an unprecedented crisis to raise cash and narrow cash-flow and funding gaps. NICHOLAS TAN
Sell discounted SIA vouchers that can be used for up to five years. No refund and no exchange. Airfares must be kept lower and big discounts given to those who buy Covid-19 SIA vouchers to thank them for their support. JACKY XING
It is a good idea, except the prices of future tickets are not guaranteed. Hence, with the money already spent on “credits”, consumers may end up paying more for the tickets. As an appreciation for extending a hand to the airline, if such credits can come with a discount, that will encourage more spending right after this outbreak and protect the airline’s long-term interests. MARK LEONG
Give extra incentives such as easier upgrades to the next class of travel. I will support the move. ANDREA KHOR
How about allowing a conversion of KrisFlyer miles to flight credit dollars valid for three years? LENE HENG
I will welcome the move if the Government can buy KrisFlyer miles using taxpayers’ money and award them to frontline medical workers. It is a win-win: Save SIA and reward these staff members who are fighting to keep us safe. NIGEL ANG
AirAsia sold its one-year unlimited pass (which allows travellers to take unlimited flights between Kuala Lumpur and selected destinations) less than a month ago at RM499 (S$167). It is definitely priced rightly, given the risks involved. For SIA, selling miles may be a better proposition, but do not expect a no-holds-barred ticket as there will be peak and off-peak periods. Otherwise, there will be many angry passengers when supply cannot match demand. NEO ALAN
Sell flight miles at a discount. The miles should be transferable with a 10-year validity. Passengers should be allowed to redeem the miles at any time, whether during peak or off-peak seasons. The Singapore public does not owe you an existence, SIA. You do not get to privatise your profits and socialise your losses. If you are going belly up, then jolly well go belly up. ABI RAM
Future pricing could render the flight credits useless. Instead, SIA must sell open tickets with an expiry date. NIROZE IDROOS
I love to fly with SIA as it has top-notch planes, crew, seat configurations, amenities, and a variety of food and drinks. Yet if SIA does float a plan to pay-now-and-fly-later with heavily discounted credits, I will be very sceptical about my ability to cash in on them based on my requirements, because I am sure there will be many blocked-out dates and restrictions. I have seen it when redeeming my SIA points. CAESAR ANG
These comments were first posted on TODAY’s Facebook page or sent to Voices. They have been edited for clarity, accuracy and length. If you have views on this issue, send your letter to voices [at] mediacorp.com.sg with your full name, address and phone number.
