SIA replies

SIA replies

We are referring to the letter written by Michael Sheehy in
The Jakarta Post on Sept. 25, 2002.

We are sorry to hear that Michael Sheehy was unable to redeem
his Global Reward points for free travel on SIA, and we regret we
are unable to issue the tickets on Ansett's behalf. We would like
to explain the matter as follows.

Each airline's frequent flyer program is operated as a
separate business entity. Airlines cross-participate in each
other's frequent flyer programs for commercial reasons. Cross-
participation enables customers to travel on a participating
airline to earn points on his account in a frequent flyer program
not operated by the airline he is flying on.

Moreover, he can redeem his points for travel on the
participating airlines. However, the frequent flyer program with
which he has an account must issue the tickets. His used points
are deducted accordingly.

When Sheehy flew on SIA and earned points on his Global
Rewards account, SIA already paid Ansett for the points credited
to his account. Hence, SIA has already discharged its
obligations. When a customer uses the redemption ticket to fly on
SIA, the ticket coupons retrieved by SIA are used to bill the
airline that issued the tickets for the services rendered. If SIA
were to issue the tickets on behalf of Ansett, it effectively
means that SIA is assuming the obligations of Ansett.

In fact, most airlines do not even honor the tickets of a
failed airline because its ticket coupons do not have any value.
SIA accepted Ansett tickets issued prior to Sept. 14, 2001, for
travel on SIA as a gesture of goodwill to customers. These Ansett
tickets had no value for us. We ask for Sheehy's understanding
that it would not be reasonable to expect SIA to assume the
obligations of Ansett.

As for Sheehy's Kris Flyer status, we notice that Sheehy has
been a member with us since Jan. 15, 2002. As mentioned on the
Kris Flyer program guide, the qualification and renewal for elite
status is between April 1 and March 31 of each year. Before March
31, 2002, Sheehy had accumulated 21,840 miles, which is still
below the Kris Flyer's silver elite status requirement.

We seek his understanding that we need to exercise the same
criteria for all Kris Flyer members. We would also like to have
the opportunity to explain this to Sheehy personally.

GLORY HENRIETTE, Executive Assistant, Public Relations,
Singapore Airlines, Jakarta