Changi low-cost terminal to open in March

Gavin Lipsith

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The Civil Aviation Authority of Singapore has set a firm opening date for its new terminal dedicated to low-cost carriers

Singapore Changi airport's new low-cost carrier terminal will open in March 2006, the Civil Aviation Authority of Singapore (CAAS) has revealed. The company said that retail rental fees at the facility would be up to 50% lower than at terminals one and two, funded by a S$13 ($7.69) passenger charge paid by departing passengers.

The new terminal will be completed by January and features two adjacent single-storey buildings for departures and arrivals. CAAS said that the low rent and passenger charge were made possible by reduced operating costs, which were set to fit the low-cost carrier model. The company denied that lower costs meant lower service, citing the free shuttle link to existing terminals and the facility's full commercial offer. Airlines will pay the same landing and parking fees as at T1 and T2, but will save on airbridge fees as there are no bridges at the new facility.

CAAS director general Wong Woon Liong said: "With budget travel becoming more prevalent in the region, we are doing what we can to promote the growth of this segment in Singapore. The simple design and layout of the new terminal will enable us to lower airport charges significantly. These cost savings will help to stretch the dollar for airlines and travellers."

To date only Tiger Airways has committed to using the 25,000sq m (269,000sq ft) terminal, which will have capacity for 2.7m passengers. CAAS has extended contracts with T1 and T2 tenants Nuance-Watson (Singapore) and DFS Group to operate beauty and liquor and tobacco concessions in the low-cost carrier terminal. As reported in DFNI December 1, tenders for other retail concessions attracted few bids. The terminal's general merchandise and multi-brand sports concessions failed to attract any bidders.