Changi awards contract for low-cost terminal

John Rimmer

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Civil Aviation Authority of Singapore has hired Sanchoon Builders to design and build Changi's new low-cost terminal, scheduled for completion early next year

Civil Aviation Authority of Singapore (CAAS) has awarded the S$24.7m ($15m) contract to design and build Singapore Changi airport's low-cost terminal to Sanchoon Builders. Building will begin in the first quarter of 2005 and is due to finish early next year. Duty-free shopping will form a key part of the commercial facilities at the new terminal. Tenders for retail concessions will be called in the first half of this year (DFNI December 1 2004).

The low-cost terminal will feature two adjacent single-storey buildings, allowing arriving and departing passengers to be processed separately. Initial passenger capacity at the terminal will reach 2.7m, though CAAS insisted there was scope for expansion. The total cost of the scheme is expected to reach S$45m ($27.4m).

Talking to DFNI at the end of last year, CAAS commercial director Lim Peck Hoon said she expected the new terminal's retail offer to be driven by convenience rather than luxury. "We expect that [passengers using the terminal] will be travelling much more frequently and hence the challenge is to make them buy at the shops each time they travel. On that basis we do not expect them to be interested in the high-end branded products on the numerous trips they will be making. Instead, they will most likely be driven by value-for-money and convenience."

Local low-cost carrier Tiger Airways has already signed an agreement to use Changi's low-cost terminal upon completion.