Temasek to gobble up Changi
In the biggest upheaval to
Singapore Inc in decades, reflecting rising international challenges and opportunities, Singapore Government-controlled
Temasek will acquire
Changi Airport and its operating businesses. Regulator, owner and manager, the
Civil Aviation Authority of Singapore, will be replaced by an unnamed-company (Newco) that will control Changi, and a new Civil Aviation Authority, which will drive Singapore's national aviation policy, regulatory and air traffic services functions.
Key points:
- Temasek to acquire Changi Airport and its operating businesses;
- New Civil Aviation Authority to retain regulatory and ATM functions;
- Restructure is effective 01-Jul-09 – a much more rapid programme than expected;
- "Whole idea of transferring ownership to Temasek is to have a clearer separation of the role of the policymaker, regulator and the operators" – Singapore Government;
- Changi Airports International expected to take more active role in offshore airport market;
- Temasek's first major airport investment - foreign bidders excluded as Changi is considered a "strategic national economic asset";
- Pricing of the transaction not disclosed;
- Corporatisation seen as prelude to eventual privatisation;
- Growth rates have held up well this year at Changi;
- Traffic growth should pick up further in Dec-08, with the influx of LCC capacity to Malaysia.
Theodore Koumelis
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Thursday, October 09, 2008