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.