Changi Airport to increase charges, levy for passengers and airlines
Revenue from the fees will be used for new investments in the airport’s infrastructure to the tune of S$3 billion.
by Justin Ong Guang-Xi · CNA · JoinSINGAPORE: Changi Airport will progressively increase its charges for passengers and arriving flights over the next six years.
Fees payable by passengers departing from Changi Airport will rise from the current S$46.40 to S$58.40 (US$35 to US$44) by April 2030.
Transfer and transit fees, which are now S$6 per passenger, will triple to S$18.
Airlines will also have to pay higher landing, parking and aerobridge charges from April next year, but they get a 50 per cent rebate on the increases for the first six months.
The move will help offset investments in the airport’s infrastructure, which will cost S$3 billion, said Changi Airport Group and the Civil Aviation Authority of Singapore (CAAS) on Thursday (Nov 7).
These investments include the addition of new Skytrain cars and the refurbishment of Terminal 3.
It will also cater to higher operating costs, including for manpower and energy.
“In particular, wages for airport workers have increased over the past few years and are expected to continue growing in line with national initiatives such as the progressive wage model,” said the airport and CAAS in a press release.
They added that the changes will also take into consideration earlier investments made during the COVID-19 pandemic when charges were held constant from Apr 1, 2020 to Nov 1, 2022.
This was because planned increases were suspended to help airlines tide over the crisis.
Changi Airport CEO Yam Kum Weng told reporters on Thursday that while passenger traffic has largely recovered for the airport, it has not been spared the increasing cost pressures that have affected other industries.
The airport has taken steps to manage its costs but these were not enough to cover the increases, Mr Yam said.
“We have been very careful to calibrate the increase to ensure that Changi stays competitive,” he added.
WHAT ARE THE FEE INCREASES FOR PASSENGERS?
Passengers who are departing from Changi Airport currently have a service and security fee of S$46.40 included in their airfare. From Apr 1, 2027, this fee will increase by S$3 a year for four years. By the final increase in April 2030, it will be S$58.40.
Transfer or transit passengers now pay S$6 for this fee – unchanged since 2015 – and it will rise by S$3 every year for three years starting April 2025. It will then increase by S$1 annually for the subsequent three years.
This means that by the end of the last increase in 2030, the fee will be S$18 for all transiting passengers.
The fee hikes apply to transfer and transit passengers who have tickets issued after Jan 1 next year for travel from Apr 1.
Other than the service and security fee, passengers who depart from Changi Airport will also have to pay a one-time increase in aviation levy from April 2027. This has been raised from S$8 to S$10.
The aviation levy funds CAAS’ operations to grow Singapore’s air hub.
WHAT ARE THE INCREASED CHARGES FOR AIRLINES?
A narrow-body Airbus A320 aircraft, for example, would have a landing, parking and aerobridge charge of S$1,200 per landing now.
This will rise by an average of S$110 per landing for the first three years from April 2025, and then rise at an average of about S$65 per landing for the subsequent three years.
A wide-body Airbus A350 aircraft, which would pay S$3,600 per landing, will have to pay an average of S$290 more for the first three years, then S$190 more for the subsequent three years.
“In context, the annual increase for a narrow-body (A320) works out to between 40 cents to 80 cents per seat,” said Mr Jeffrey Loke, senior vice president of pricing and commercial strategy at Changi Airport Group.
“And for a wide-body (A350), the per annum increase works out to 90 cents to S$1.50 per seat.”
Changi Airport and CAAS said they have engaged the major airlines on the revised charges.
The airport will give a 50 per cent rebate on the increase for the first six months, from Apr 1 to Sep 30, 2025.
“More information will be shared with airlines subsequently,” said the airport and CAAS.
WILL THIS IMPACT SINGAPORE’S COMPETITIVENESS?
Responding to media questions on whether the higher fees could hurt Singapore’s competitive edge as an air hub, CAAS director-general Han Kok Juan said the country remains “well poised” to serve growing demand in the region.
With air passenger volume expected to double around the world in the next 20 years, and much of the growth concentrated in the Asia-Pacific region, Mr Han said he expects Singapore to remain an attractive air hub and connecting point for transfer and transit passengers.
The fee hikes have been held off for as long as possible, he said.
“We have kept the increase as small as possible and staged this increase over several years,” said Mr Han.
“We are giving rebates to help airlines with the transition, and the investments that we talked about – the S$3 billion investment and the fee increase – are designed to enhance the Changi experience and to make the Singapore air hub even more competitive.
“Aviation is existential for Singapore. We will not let the air hub fail,” he said.
“We will continue to be watchful, actively monitor the performance of the air hub for the different segments, and be able to respond to changes in our operating environment."
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