Singapore Changi’s decision to close budget terminal could backfire as need for third runway grows | CAPA
Singapore Changi’s decision to close budget terminal could backfire as need for third runway grows
Singapore Changi Airport has taken the unusual decision to demolish its relatively new low-cost carrier terminal and build a larger hybrid terminal in its place. The closure of Changi’s Budget Terminal in Sep-2012 will result in the airport’s total handling capability shrinking by 10% during what could prove to be a challenging four-year period before the new hybrid Terminal 4 opens.
Singapore also faces a pressing need to decide on the opening of Changi’s third runway, which is now only available to military aircraft, if it wants to stay ahead of the growth curve. Growing LCC operations have seen aircraft movements grow higher than passenger numbers.
A third runway and even a fifth terminal will eventually be needed for
Singapore to maintain its status as a leading hub. Singapore and Changi have always made the investments to ensure there is plenty of space for growth and first class facilities for passengers. But the highly profitable airport has come under scrutiny over the last year: first for its unusual decision to start charging a tax for transit passengers and now for its decision to close its Budget Terminal only six years after it opened.
Changi currently has capacity to handle 73 million passengers p/a. With the Budget Terminal closing, this will drop on 25-Sep-2012 by 7 million passengers p/a to 66 million (although last year the Budget Terminal operated at 66% of capacity, handling 4.6 million). The replacement Terminal 4 will be designed to handle 16 million passengers p/a, boosting total capacity to 82 million passengers by 2017.
...it will have more “passenger amenities,”...
T4 will be built without aerobridges but Changi says it will have more “passenger amenities,” including a wider selection of retail, food and beverage options than the Budget Terminal it replaces. While this will appeal to passengers, Changi will benefit from increased non-aeronautical revenue, which often comprises the largest source of revenue for airports.
The new terminal is also expected to accommodate widebody aircraft, something the current Budget Terminal cannot support and had become an issue because new
Singapore Airlines low-cost long-haul carrier
Scoot is interested in an LCC terminal option but will launch operations in the next few months from T2. More details on T4 will be released in the coming months and construction is expected to start next year.