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Changi Airport Group (CAG) announced that the Passenger Service Charge (PSC) for passengers departing at Singapore Changi Airport will be revised from S$13.90 to S$19.90 with effect from 1 April 2013. The new PSC will apply to all air tickets purchased from 1 November 2012 for travel on or after 1 April 2013.
The Passenger Security Service Charge (PSSC) of S$8.00 remains unchanged. Including the Aviation Levy of S$6.10, collected by the Civil Aviation Authority of Singapore (CAAS), departing passengers will pay a total of S$34.00.
The PSC and PSSC for transfer and transit passengers, of S$9.00 and S$3.00 respectively, also remain unchanged.
Funding future growth
The PSC revision will help to fund new investments required to cater to growing passenger traffic and partially cover Changi Airport’s aeronautical operating costs which have increased. Over the next five years, CAG is committed to a more than S$2 billion expansion and enhancement programme at Changi Airport to sufficiently cater for capacity growth, preserve and improve service levels for airport users through end-of-life replacements and operational efficiency improvements.
Two imminent development projects – the development of the new Terminal 4 and the expansion of Terminal 1 – will raise handling capacity at Changi Airport by about 30% from 66 million to 85 million passengers per annum. With Changi Airport expected to serve an additional 10 million passengers per annum within the next five years, timely investment in terminal capacity is crucial in ensuring that Changi upholds its high levels of safety and security as well as continue to provide a world class airport experience to its passengers.
At the same time, there will be significant investment in airside infrastructure over the next few years including new parking stands and taxiways throughout the airport, as well as resurfaced runways and taxiways. To maintain efficiency and safety, there will also be end-of-life replacement of high tension cables, refurbishment of existing lifts, travellators and escalators, replacement of the Flight Information Display System in Terminal 3 and replacement of fire-protection systems and fire-fighting equipment.
Subsidised aeronautical charges
CAG operates within an economic regulation framework governing the airport’s operations. The PSC revision complies with this framework which is administered by the CAAS.
The regulatory framework ensures that airlines operating at Changi Airport and passengers share in the success of CAG’s non-aeronautical businesses (e.g. retail concessions), as a substantial portion of economic profit from these businesses is used to subsidise Changi’s aeronautical costs each year. With Changi Airport among the top four in the world in terms of airport retail sales, improvements in its commercial performance benefit airlines and passengers by moderating aeronautical price adjustments.
CAG remains committed to keeping aeronautical fees at Changi Airport competitive, taking into account passenger growth and economic conditions, both locally and globally.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
