SINGAPORE – The dispute between Flight Centre and Singapore Airlines over commission payments rumbles on.
SIA is also embroiled in a similar dispute with travel agents in India over sales commissions.
Flight Centre, with 800 outlets in Australia, has taken SIA off its list of 40 preferred airlines, and told staff to stop promoting the Singapore carrier to clients.
SIA has responded by urging its Krisflyer members to use other travel agencies and its website for ticket purchases.
The move came after Flight Centre last week launched a “Turn the Screw on SQ” campaign and told staff it was initiating a “stop sell” on Singapore and its Silkair subsidiary.
While Flight Centre has played down the dispute, an internal email obtained by The Weekend Australian told staff to attempt to “switch sell” to an alternative preferred carrier all clients who asked for tickets on Singapore Airlines flights.
It said Flight Centre would no longer offer Singapore as an airline option to clients, no longer market or promote Singapore Airlines fares and no longer accept information or promotional material from the airline’s representatives.
The dispute stems from demands by Flight Centre for higher incentive payments as part of a deal that gives Singapore preferred status.
The travel industry appears divided on the issue, some claiming that Flight Centre is being greedy by calling for bigger overrides.
