Concessions key at Changi budget terminal

Gavin Lipsith

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The new terminal opens for business on Sunday (March 26), with retail a crucial part of keeping passenger charges low, says the Civil Aviation Authority of Singapore

DFNI Asia was among the first to see the new low-cost carrier terminal on a preview day held on March 13. CAAS assistant commercial director Jeffrey Loke said that passenger charges at the new terminal would be S$13 ($8) compared with S$21 ($13) at T1 and T2.

Loke explained that the retail offer has been specifically tailored to cater for low-cost passengers. Changi liquor and tobacco tenant DFS Group and fragrances and cosmetics retailer Nuance-Watson (Singapore) have chosen their own product mix, but Loke said CAAS had been active in selecting the remainder of the assortment.

"We have selected brands to reflect the passenger profile," he said. "The offer will include more mid-priced brands than at T1 or T2. DFS and Nuance-Watson will tailor their offer to the same profile."

Among the other retailers at the new terminal are King Power Group (Hong Kong), which will operate a general merchandise and a confectionery outlet, and local companies Sports Connection and confectionery specialist Nuts & Nibbles. A Mini Toons plush toy store has been strategically placed at the entrance to departures gates to maximise impulse purchases, said Loke.

Other than a Han's restaurant, CAAS decided not to offer landside retail after research among low-cost passengers revealed they prefer to pass check-in and security before shopping, said Loke. Research also led to the installation of a big arrivals liquor store, as CAAS determined that low-cost passengers spend more on liquor in such outlets than most other travellers.

The new terminal is expected to welcome 1m departing passengers in its first year of operation, and has the capacity to handle 2.7m passengers. It can be easily expanded when that figure is reached, insisted Loke, although Tiger is the only airline to commit to the facility at present.