Terminal 5 was scheduled to be completed around 2030.PHOTO: ST FILE
The mega Changi Airport Terminal 5 project will be paused for at least two years amid uncertainty about how the Covid-19 pandemic will change the aviation sector, Transport Minister Khaw Boon Wan said on Tuesday (June 16).
He said that the Government is currently carrying out a study of how the aviation sector will change, and that the design of T5 will be changed to take into account new safety requirements.
He said that under normal circumstances, the Government would have to start calling for major civil engineering tenders to meet its initial timeline for completing the terminal in the 2030s.
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Help for airlines at Changi when higher airport charges kick in
Airlines facing higher charges at Changi Airport will get some temporary relief as part of an aid package to ensure that the airport remains competitive against its rivals. ST understands that the authorities intend to roll out an aid package, which could take the form of discounts on aircraft parking and landing fees, on July 1 – the same day the higher charges kick in.
The size of the discount and the duration of the relief are being worked out, the authorities said. Travellers, who also face higher fees this year, will get relief only if airlines decide to pass on the savings to their customers.
Responding to the Government’s plan to roll out the aid package, IATA’s APAC director for airport, passenger, cargo and security Vinoop Goel said: “The fact that MOT, CAAS and CAG are contemplating relief measures indicates that they recognise the negative impact of the increases.”
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Airlines to get some relief from higher fees
Higher charges will kick in for all who use Changi Airport in July, but the authorities intend to soften the blow for airlines with a temporary package that could include discounts on some fees.
The details of the relief are still being finalised and it is expected to take effect on July 1, together with the higher charges.
A temporary package could include discounts on some fees increased to fund the an expansion project for Changi airport.
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Government to give discounts thanks to Jetstar
Following Australian air carrier Jetstar’s threat to skip Singapore as a transit hub to Europe and raise airfares from Singapore by 20%, the Singapore government is now backing off from increased airport charges by offering discounts in aircraft parking and landing fees on the same day when the new taxes will be imposed, 1 July 2018.
According to state media reports, the Singapore government is working on the details of the discount, but the discounts will not be permanent. The authorities said that the airlines will get the discounts only when they promise to pass on the savings to their customers.
The Ministry of Transport, Civil Aviation Authority of Singapore and Changi Airport Group issued a joint press release saying “short-term measures will be put in place to assist airlines”. The discounts however will apply only to airlines. Travellers will still see a S$13.30 increase in T5-prefunding tax, while transit passengers will see a S$3 T5-prefunding tax increase. Travellers currently pay S$34 while transit passengers pay S$6 in existing airport charges.
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Govt to impose new airport tax from July; passengers flying out of Changi to pay S$13.30 more
Passengers flying out from Changi Airport from July 1 will have to pay S$47.30 – or S$13.30 more – in departure charges, which includes a new tax levied to fund airport expansion.
The new Airport Development Levy (ADL) – chargeable at S$10.80 for departing passengers & S$3 for transit passengers – will be introduced to help fund airport developments, such as the new Terminal 5 and related infrastructure in Changi East, the Ministry of Transport (MOT) & the Civil Aviation Authority of Singapore (CAAS) announced on Wednesday (Feb 28).
At the same time, Changi Airport Group (CAG) also said it will be increasing aeronautical charges for both passengers and airlines over the next 6 years, to fund the expansion and upgrading projects. The increase in fees – not applicable to transit passengers – will kick in at S$2.50 from July 1, and will go up by S$2.50 every year from April 1 next year to April 1, 2024, for all passengers who start their departures from Changi Airport.
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International Air Transport Association 'disappointed' with new Changi Airport passenger levy
The International Air Transport Association (IATA) said that it is "disappointed" with the decision to charge travellers flying out of Changi Airport with a new levy to fund the development of Changi East & Terminal 5.
The global airline voice's regional vice-president (Asia Pacific) Conrad Clifford told Channel NewsAsia on Wednesday (Feb 28) that the industry is against pre-funding for infrastructure projects, where passengers and airlines have to pay for services & facilities they do not currently utilise.
"It is unfair to expect passengers & airlines to pay in advance for a facility they may or may not use in the future when the facility is ready. It also goes against the International Civil Aviation Organization’s (ICAO) charging principle of cost relatedness – where passengers and airlines are charged for the cost of services actually used," he said.
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Aviation trade body, Jetstar Asia express disappointment at new airport charges
The airline industry’s most prominent trade body, the International Air Transport Association (IATA), expressed disappointment at Singapore’s decision to impose a new airport tax & higher departure charges to fund new developments, describing the move as “unfair”.
At least one airline, budget carrier Jetstar Asia, warned that the new charges would be passed on to passengers, with fares departing Singapore expected to rise by between 10 and 25%, depending on the destination.
Singapore Airlines, however, said only that it noted the new charges & would implement them, adding that it supported the planned development of the airport’s Terminal 5.
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Jetstar to skip Singapore as transit hub to Europe
Australia’s popular low-cost air carrier Jetstar yesterday (Mar 2) announced that they will divert transit flights from S'pore to Hong Kong, China & Middle East. The decision came after the Singapore government went against the advice of the International Air Transport Association to not impose pre-funding taxes for T5.
Short of funding for Terminal 5, the Singapore government last week imposed a S$13.30 increase per passenger and a S$9 additional levy per transiting passenger.
Jetstar’s CEO Gareth Evans told Reuters that travellers will skip Singapore to avoid the taxes and announced that Jetstar flights from Singapore will increase up to 20% due to the government tax:
“The additional fees would lead to an average increase of 15-20 per cent on the fares the company sells in this market. We are going to have to shift flights around because demand will change. Singapore is competing with Hong Kong, China and Middle Eastern hubs. People will change hubs to fly to Europe, for a few dollars.”read more
Some travellers put off by higher taxes at Changi Airport
Global airline body expresses concern over fee hike plan to help fund Changi's expansion
While the higher departure & airline fees at Changi Airport will go towards funding the Changi East development which includes Terminal 5, not everyone is a fan of the move.
Budget travellers, airlines & the International Air Transport Association (Iata) yesterday expressed their misgivings about the plan to raise fees from July 1. Business & luxury travellers seemed less bothered, if a quick check with those passing through Changi Airport yesterday was any indication.
Indonesian entrepreneur Edward Sojono, 35, who visits Singapore 4 times a year, mainly to shop, noted that the increase in departure fees by $13.30 could translate into a 10 per cent jump in his airfare.
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Aviation trade body objects to passengers pre-funding Changi Airport Terminal 5
The airline industry's most prominent trade body said it objects to any attempt by Singapore to charge travellers to help fund the construction of its new Changi Airport Terminal 5.
The International Air Transport Association (IATA) is "strongly against any pre-financing of any infrastructure", IATA chief executive Alexandre de Juniac told a media roundtable as part of the Singapore Airshow on Monday (Feb 5). "We shouldn't pay first without having the infrastructure ready to be operated and used by airlines & by the users."
Passengers flying out of Changi Airport may have to pay S$10 to S$15 extra as part of a new tax being considered to help pay for the hub's expansion, including the building of Terminal 5, The Straits Times reported last month. Charges for airlines, including parking & landing fees, are expected to rise by about 30%, according to the report.
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Global airline body objects to pre-funding for Changi Airport's future Terminal 5
An aerial view of the eastern part of Singapore, where Changi Terminal 5 will be constructed. FOTO: ST FILE
Governments & airports should not expect users to pre-fund expansion projects, said the chief of a global airline body, when asked about plans by Singapore to likely do this for the future Terminal 5 at Changi Airport.
Speaking to reporters on the sidelines of the Singapore Airshow Aviation Leadership Summit 2018, chief executive officer & director-general of the International Air Transport Association, Mr Alexandre de Juniac, said: "We have mentioned many times that we are not in favour of pre-funding. We have a permanent dialogue with Singapore on this & we will keep reiterating and repeating this."
In January, The Straits Times reported that passengers flying out of Changi may soon have to pay between $10 and $15 extra, as part of a new tax being mooted to help pay for a major airport expansion, involving the building of T5.
related: Users shouldn't be pre-funding airport expansion: Iata chief
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Prospect of paying more fees, Raise eyebrows with public
There is still no official announcement yet as how much the project will cost
Travellers flying out of Changi Airport and airlines operating in the area may be asked for extra fees and charges from as early as next year to help pay for the future Terminal 5 (T5), which is slated for completion around 2030.
The Changi East development is being built near the current airport, which includes major infrastructure, ground works at the over 1,000 ha site and he building of massive drains and tunnels, some of which will move bags and people between T5 and the current airport.
T5 is expected to eventually handle up to 70 million passengers a year - more than T1, T2 and T3 combined - when completed. However, according to the Straits Times, the third runway being built in the same project will be operational before that, in the early 2020s.
related: Netizens took to social media to express their displeasure
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Iata warns against pre-funding Changi's expansion
WHILE infrastructure constraints remain a major bottleneck in the region, the International Air Transport Association (Iata) warned against pre-funding to finance airport expansion projects such as Changi Airport's upcoming Terminal 5.
Advising against saddling users with additional charges, Iata chief executive Alexandre de Juniac said: "We shouldn't pay first without having the infrastructure ready to be operated & used by the airlines & users. We have mentioned several times that we are not in favour (of it), and we will reiterate our reluctance.
"We have a permanent dialogue with the Singaporean authorities; we have very close links." He was speaking to media on the sidelines of the Singapore Airshow Aviation Leadership Summit (SAALS).
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Changi Airport to increase fees for departing passengers to fund T5 and other upgrading works
From July 1, 2018, all passengers flying out of Singapore Changi Airport will be paying more for departure charges.
The Passenger Service and Security Fee (PSSF), presently S$27.90, will increase by S$2.50 per annum from July 2018. There will be no change in the PSSF levied on transfer/ transit passengers, who now pay S$6.00 when departing from Changi Airport.
The adjustment is to help fund part of Changi East development, as well as the upgrading and refurbishment of existing terminal infrastructure and security facilities, according to a press release by the Changi Airport Group (CAG) on Feb 28, 2018. Changi East comprises Terminal 5, a three-runway system, as well as a network of tunnels and systems to allow for the transfer of passengers, baggage and airside vehicles.
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Changi Airport passengers to pay new levy to fund developments including T5
A view of Changi Airport. (File photo: Changi Airport Group)
Travellers flying out of Changi Airport will have to pay up to S$13.30 more from Jul 1 with an increase in passenger fees and a new levy to fund a major expansion for the airport, including the building of Terminal 5 (T5).
The bulk of the charge comes from a new Airport Development Levy to fund the expansion project. For passengers who begin their trips from Changi Airport, they will pay a levy of S$10.80, the Transport Ministry and Civil Aviation Authority of Singapore (CAAS) said on Wednesday (Feb 28).
The Passenger Service and Security Fee – a combination of the current service charge and a security charge – will increase by S$2.50 from Jul 1. From Apr 1, 2019, this fee will again increase by S$2.50 and will do so every year until 2024, which marks the mid-point of the construction phase of the Changi East project. The fee will then be reviewed.
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Changi Airport will hike passenger fees and impose new Airport Development Levy to fund T5
Changi Airport is set to hike passenger service fees on top of imposing a new Airport Development Levy on all passengers who pass through and begin their trips in any of the airport’s terminals.
This fee hike and new levy will finance airport expansion projects, including Terminal 5 (T5), according to a statement by the Transport Ministry and the Civil Aviation Authority of Singapore (CAAS) yesterday.
Travellers currently pay a departure charge of S$34 to use the airport. From 1 July this year, an additional S$10.80 levy will be imposed on travellers. On top of this, the airport will charge travellers a S$2.50 Passenger Service and Security Fee, which is a combination of the current service charge and a security charge.
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Changi Airport May Increase Fees To Build Terminal 5
The airline industry’s most prominent trade body said it objects to any attempts by Singapore to charge travelers to help fund the construction of its new Terminal 5 in Changi Airport.
The International Air Transport Association is “strongly against any pre-financing of any infrastructure,” IATA Chief Executive Officer Alexandre de Juniac told a media roundtable as part of the Singapore Airshow Monday. “We shouldn’t pay first without having the infrastructure ready to be operated and used by airlines and by the users.”
Passengers flying out of Changi Airport may have to pay $10 to $15 extra as part of a new tax being considered to help pay for the hub’s expansion, including the building of T5, the Straits Times newspaper reported last month. Charges for airlines, including parking and landing fees, are expected to rise by about 30 percent, according to the report.
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World's Best Airport 2018
Changi voted as Best Airport but did not do so well in cleanest (#5), airport service (#5), security processing (#6), baggage delivery (#7) & immigration (#8)
Singapore Changi Airport has been named as the World's Best Airport by air travellers for the sixth consecutive year at the 2018 Skytrax World Airport Awards, held at Passenger Terminal EXPO in Stockholm, Sweden.
The Skytrax World Airport Awards are voted for by air travellers in the largest, annual global airport customer satisfaction survey. The survey is operated as an independent study, with no entry fees or charges to any airport, and the Awards ceremony is also provided to winning airports at no cost. The use of award logos and related information is free of any charge.
The 2018 Awards are based on 13.73 million airport survey questionnaires completed by over 100 different nationalities of airline customers during the survey period. The survey operated from August 2017 to February 2018, covering 550 airports worldwide and evaluating traveller experiences across different airport service and product key performance indicators - from check-in, arrivals, transfers, shopping, security and immigration through to departure at the gate. The Survey was available in English, Spanish and Chinese language options.
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