The Changi Airport Group (CAG) has announced that it will invest over SGD 3 billion ($2.2 billion) to improve Singapore Changi Airport (SIN) in order to strengthen its position as a global hub.
According to the group, over the next six years it will work on the airport’s Terminals 1 to 4 to improve services such as baggage handling, check-in, immigration and Skytrain connections between terminals, as well as replacing end-of-life systems to facilitate smoother passenger and airline experience.
The group claims that the investments will help Changi Airport to remain competitive and meet rising demand for air travel, prior to Terminal 5 being scheduled to operate by the mid-2030s.
Increase in passenger and airline fees
In order to fund these investments and cater for higher operating costs such as manpower, airport charges will be progressively raised between 2025 and 2030.
To help airlines with the transition, the group will offer a 50% rebate on increases in landing, parking and aerobridge (LPA) charges for the first six months.
Landing, Parking and Aerobridge (LPA) charges for airlines operating at Changi Airport will be adjusted annually from 1 April 2025. The LPA charge for a narrow-body A320 aircraft, presently around SGD 1,200 ($906) per landing, will increase year-on-year by an average of SGD 110 ($83) per landing for the first three years, and an average of about SGD 65 ($50) per landing for the next three years.
The LPA charge for a wide-body A350 aircraft, presently around SGD 3,600 ($2719), will increase annually by an average of SGD 290 ($220) per landing for the first three years, and an average of about SGD 190 ($144) per landing for the next three years.
The group has said that the raise in fees will also support the recovery of significant investments made during the COVID-19 pandemic, such as the expansion of Terminal 2 and check-in counter capacity in Terminal 3, when passenger fees and airline charges were frozen and planned increases were suspended.
Based on current ticket prices, the group estimates that the increase in passenger fees will constitute around 1% or less on an economy class ticket for most flights departing from or connecting through Singapore Changi.
The Civil Aviation Authority of Singapore (CAAS) will work with the group to monitor the airport’s performance, responding swiftly to make further adjustments if needed.
The $2.2 billion investment will cover the following improvements:
- Refurbishment of Terminal 3
- Rejuvenation of Skytrain subsystems
- Upgrading of Terminal 3 baggage handling system and the new Terminal 1 to 3 Inter-Terminal baggage conveyance system
- More check-in rows at Terminal 4
- Expansion of Terminal 1 Arrival Immigration Halls
- Strengthening of airside infrastructure
- Construction of new airside facilities