singapore airlines and grab deal
A view of the inflight entertainment screen on the back of economy class seats on the first of 67 new Airbus A350-900 planes delivered to Singapore Airlines at Singapore's Changi Airport 3 March 2016 (Edgar Su/Reuters)

Singapore Airlines and SilkAir will be introducing a new airfare pricing structure next month, with revisions to advance seat selection, frequent flyer, baggage allowance, among others.

The new fare types will be introduced on January 20 for all tickets sold worldwide, the company said in a regulatory filing.

The group is in the midst of a review to fend off intensifying competition from Middle Eastern carriers at the premium end and low-cost operators at the budget end.

Depending on the class of travel, customers will have up to three types of airfare to choose from when making a booking, the statement said.

The airlines would introduce three new fare types for economy class bookings, named 'Lite', 'Standard' and 'Flexi.

Baggage allowance will increase to 35kg for the highest-category Flexi fares while it will remain at 30kg for Lite and Standard fares.

Advance seat selection, which is currently available for all economy class bookings, at no charge, will be chargeable for Lite fares, starting from US$5 per flight segment.

No charges will apply for advance seat selection for Standard and Flexi fare types, although a new category of Forward Zone seats, which are in higher demand, will be chargeable for Standard fares, the company said.

Mileage accrual rates will be set at 50 percent for Lite fares, 75 percent for standard fares and 100 percent for Flexi fares.

For the premium economy class customers, there will be two fares, namely 'Standard' and 'Flexi'.

Baggage allowance will be unchanged at 35kg for both fare types. Mileage accrual, which is currently set at 110 percent for all Premium Economy fares, will increase to 125 percent for the new Flexi fare type, while it will be reduced to 100 percent for the new Standard fare type.

Three fare types will be available in Business Class, namely 'Lite', 'Standard' and 'Flexi'. Baggage allowance will be unchanged in Business Class at 40kg and advance seat selection will continue to be available at no charge for all bookings.

KrisFlyer mileage accrual will increase to 200 percent from 150 percent for Suites and First Class bookings, with all other entitlements and benefits unchanged.