Changi Airport Group plans upgrades costing $3 bil, passengers and airlines to pay higher fees

The Edge Singapore

6 November 2024 at 9:22 pm·2-min read

The existing Skytrain system will be replaced, among other upgrades

Changi Airport Group plans to invest $3 billion between 2025 and 2030 to upgrade systems and infrastructures to "stay competitive" and to meet growing demand for air travel.

The changes are made ahead of Terminal 5 becoming ready in the mid-2030s.

As such, the airport plans to progressively raise charges for passengers and airlines to help fund these investments and to cope with higher operating costs.

On June 6, CAG reported earnings of $431 million for its ended March 2024. This is an increase of 1,206% from the preceding year, which was distorted by the pandemic. Revenue in the same period was up 45% y-o-y to $2.7 billion.

According to CAG, planned upgrades include the replacement of the existing Skytrain system that helps carry passengers from one terminal to another; upgrading the Terminal 3 Baggage Handling System and the new Terminal 1 to 3 Inter-Terminal Baggage Conveyance System; additional check-in rows at Terminal 4 and expansion of Terminal 1's arrival halls.

In addition, to accommodate Boeing's new B777-9 aircraft now on order by flag carrier Singapore Airlines C6l, there's a need to strengthen airside infrastructure as well.

"As the world’s longest twin-engine aircraft, the B777-9 has a wheel load that is most demanding on aircraft pavements," explains CAG.

"While most of Changi Airport’s existing infrastructure can handle the operational demands of the B777-9, some taxiways will need to be reinforced and contact stands upgraded," adds CAG.

As an indication of the higher fees, passengers departing from Changi Airport are now paying $46.40 each. This will be increased by $3 per year from April 2027 onwards.

Transit passengers now pay $6. They will pay an extra $3 from April 2025 onwards.

For airlines, the charge for a narrow-body A320 is now $1,200 per landing. This amount will increase by $110 per year for the next three years and by $65 for the following three years.
Wide-body planes such as the A350 now pay around $3,600 and the fee will go up by an average of $290 for the first three years and $190 for the next three years.

Rebates will be provided to ease the transition, CAG says.

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