This is part of the rules of the Singapore Airlines regarding the Limitation of Liability:
"Can I book a flight for Passengers even if I am not travelling with them?
Yes. You can book and pay for your friends, family, or colleagues even if you are not travelling with them. You need to indicate during the booking process on the “Enter Passenger Details” page that you are not part of the travelling party. Secondly, as a paying party, you will need to submit a Letter of Indemnity at our Ticketing Office.
What is a Letter of Indemnity (LOI)?
Letter of Indemnity is a declaration in which you agree to use your own credit/debit card to make a booking for passengers whom you are not travelling with and give your consent to Singapore Airlines to deduct payment from your payment card. By signing a Letter of Indemnity, you indemnify SIA against any payment dispute that may arise from such bookings."
The letter of indemnification is apparently to protect the airlines from the non-flying payer challenging the credit card charge for the ticket after the fact.
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