Fourth Changi terminal aims at low-cost carriers

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While work continues on the Singapore hub's third terminal, another building is proposed to attract the region's growing low-cost aviation market

Singapore Changi airport is to build a dedicated terminal for low-cost carriers in addition to its proposed third terminal. Transport minister Yeo Cheow Tong told Reuters that construction would start as soon as the airlines had agreed on a design.

The move acknowledges the recent entry and anticipated growth of budget ailines in the region. Tiger Airways, a venture between national carrier Singapore Airlines and Ryanair, is likely to be a prime beneficiary of the new terminal, as is Valuair, a company comprised mainly of former Singapore Airlines staff which is due to launch in the first half of the year. And Malaysia's Air Asia is already well-established on several routes.

The minister added that until the terminal was operational, the carriers could use the two existing terminals, although the airport would not reduce landing fees for them. Construction of Changi's third terminal, due for completion in 2008, is likely to cost S$1.75bn ($1.02bn).