Only 20 hours after announcing that it would begin to charge a credit card service fee on Economy Lite seats for flights booked departing from Singapore, Singapore Airlines has withdrawn this new policy. The airline released a statement saying that "after further review, the new credit card service fee would not be implemented".

The new fee would have only applied to Economy Lite seating and only if the flyer used a credit card to make payment. Debit cards and PayPal payments would have been exempt from the charge. The credit card service fee was established to be 1.3 percent and would have been capped at $37.50 (S$50) per charge.

Singapore Airlines already has this fee attached to several of the destinations the airline services, such as for flights leaving Australia, Belgium, The Netherlands, UK and New Zealand. To be fair, the airline is not the only one to implement this type of fee on credit card purchases. However, the outrage over the new charges is most likely what has caused the airline to revoke the new charge.

As you may imagine, Singapore Airlines has been responding to all of the negative comments that were made on their Facebook page over the new fee. In an effort to counteract this bad press, the airline quickly released a public statement along with statements to all booking agents that this fee has been removed.

Singapore Airlines recently divided their Economy airfare into three categories. Economy Lite is their lowest-cost seats with the fewest amenities and most restrictions. Needless to say, passengers who go for these low-cost seats are often the target of add-on fees. For example, the airline has already added a $5.00 charge to this type of ticket if the passenger wanted advanced seating selection. The addition of credit card fees to this seating as well could have made the seats cost more than other two selections in the Economy section.

Pedro Pla is co-founder of GET.com. He has been around the globe several times and considers collecting air miles and points from credit cards to be a hobby, if not, an obsession. Email: p@get.com.