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['News'] From AsiaTwo: Singapore Airlines ends PPS Club programme
Sorry, been slow on the news front of late. But this just in on Google Future. 
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February 01, 2011, Singapore
AsiaTwo News: Singapore Airlines ends PPS Club programme
Singapore Airlines (SIA) earlier today said that it was terminating its PPS Club loyalty programme due to a dramatic decline in the number of qualifying customers over the past three years.
Announcing the move, the airline’s head of loyalty marketing Ms. See-Lee Thwatt said, “We are sorry to end the PPS programme, but as a significant cost-centre it is no longer viable. Last year only forty-three customers qualified for our PPS and Solitaire tiers. We are conducting market research to find out the reasons why premium travelers are not flying as often as they used to.”
Over the past few years, the PPS Club programme has been a source of contention between the airline and some of its frequent travelers. In 2007, SIA implemented sweeping changes to the programme, significantly reducing the benefits and raising the qualification threshold to an annual revenue amount equivalent to S$25,000 (less taxes and surcharges). It also ended the practice of awarding ‘lifetime’ status to longstanding members. These moves caused an uproar, with some unhappy customers threatening, without success, to sue the airline.
Two years later, SIA again raised the annual qualification threshold from S$25,000 to S$75,000, saying that further reducing its member base would enhance the exclusivity of the programme. “Our PPS Club and Solitaire customers demand exclusivity. Some have even complained that the recognition we offer has not been sufficiently ‘God-like’. We have listened to their feedback are giving them what they want.”, Ms. Thwatt said at the time.
Unfortunately, the airline appears to have miscalculated actual demand. Premium corporate travel, once the airline’s bread-and-butter business, has yet to return to pre-2008 Global Crisis levels. Last month, SIA reported average load factors of 51.4% in economy class and 26.1% in first & business class. Analysts now expect the airline to report a second straight annual loss exceeding S$750 million for FY2010.
The airline also noted the impact the termination of the PPS Club programme would have on its Solitaire Lifetime members. “Since the Krisflyer programme is not affected by the changes, we are pleased to offer our Solitaire Lifetime members complimentary Krisflyer Elite Gold status, our new highest tier. Unfortunately, as Krisflyer does not have an equivalent ‘lifetime’ tier, this complimentary status will only be valid for twelve months. However, as a further gesture of our generosity, we will also be offering these valued customers four vouchers redeemable for free ‘Preferred Seating’ when flying Economy Class.”, Ms. Thwatt said.
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February 01, 2011, Singapore
AsiaTwo News: Singapore Airlines ends PPS Club programme
Singapore Airlines (SIA) earlier today said that it was terminating its PPS Club loyalty programme due to a dramatic decline in the number of qualifying customers over the past three years.
Announcing the move, the airline’s head of loyalty marketing Ms. See-Lee Thwatt said, “We are sorry to end the PPS programme, but as a significant cost-centre it is no longer viable. Last year only forty-three customers qualified for our PPS and Solitaire tiers. We are conducting market research to find out the reasons why premium travelers are not flying as often as they used to.”
Over the past few years, the PPS Club programme has been a source of contention between the airline and some of its frequent travelers. In 2007, SIA implemented sweeping changes to the programme, significantly reducing the benefits and raising the qualification threshold to an annual revenue amount equivalent to S$25,000 (less taxes and surcharges). It also ended the practice of awarding ‘lifetime’ status to longstanding members. These moves caused an uproar, with some unhappy customers threatening, without success, to sue the airline.
Two years later, SIA again raised the annual qualification threshold from S$25,000 to S$75,000, saying that further reducing its member base would enhance the exclusivity of the programme. “Our PPS Club and Solitaire customers demand exclusivity. Some have even complained that the recognition we offer has not been sufficiently ‘God-like’. We have listened to their feedback are giving them what they want.”, Ms. Thwatt said at the time.
Unfortunately, the airline appears to have miscalculated actual demand. Premium corporate travel, once the airline’s bread-and-butter business, has yet to return to pre-2008 Global Crisis levels. Last month, SIA reported average load factors of 51.4% in economy class and 26.1% in first & business class. Analysts now expect the airline to report a second straight annual loss exceeding S$750 million for FY2010.
The airline also noted the impact the termination of the PPS Club programme would have on its Solitaire Lifetime members. “Since the Krisflyer programme is not affected by the changes, we are pleased to offer our Solitaire Lifetime members complimentary Krisflyer Elite Gold status, our new highest tier. Unfortunately, as Krisflyer does not have an equivalent ‘lifetime’ tier, this complimentary status will only be valid for twelve months. However, as a further gesture of our generosity, we will also be offering these valued customers four vouchers redeemable for free ‘Preferred Seating’ when flying Economy Class.”, Ms. Thwatt said.
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