Changi Airport will hike passenger fees and impose new Airport Development Levy to fund T5

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Changi Airport is set to hike passenger service fees on top of imposing a new Airport Development Levy on all passengers who pass through and begin their trips in any of the airport’s terminals.

This fee hike and new levy will finance airport expansion projects, including Terminal 5 (T5), according to a statement by the Transport Ministry and the Civil Aviation Authority of Singapore (CAAS) yesterday.

Travellers currently pay a departure charge of S$34 to use the airport. From 1 July this year, an additional S$10.80 levy will be imposed on travellers. On top of this, the airport will charge travellers a S$2.50 Passenger Service and Security Fee, which is a combination of the current service charge and a security charge.

This means that travellers will pay a total of S$47.30 from 1 July.

But that’s not all. The S$2.50 Passenger Service and Security Fee will keep being hiked by an additional S$2.50 each year until 2024. On 31 March 2019, the fee will rise to $5 and the next year it will be hiked to $7.50 and so on until 2024 when the fee is set to be reviewed.

This means that travellers departing from Changi Airport in 2024 will be charged a hefty S$62.30 in total.

Transit passengers will not be spared either as they will be charged an Airport Development Levy of S$3, which will be appear as part of their ticket price. Transit passengers will, as a result, be charged a total of $9 with the levy and the S$6 service and security fee they are charged presently.

Costs for airlines to use Changi Airport will also rise by 1 per cent a year until 2024. Jetstar Asia told reporters that it is “disappointed with the introduction of more airport taxes to fund Changi Airport’s Terminal 5 development”. A spokesperson for the group added that the costs will “have to be passed on to customers, which mean higher airfares”.

Although the Transport Ministry and CAAS say that airport expansion is funded by three parties (airport users, Changi Airport Group and the Government) and while the Ministry and CAAS claim that the Government will be the biggest contributor to the project, the fact of the matter is that it is the people who will be shouldering the heaviest burden to fund the expansion projects.

During Budget 2018, Finance Minister Heng Swee Keat identified infrastructure as one of the key areas of expenditure growth when he explained why measures like the 2 per cent Goods and Services Tax (GST) hike will be imposed in the coming years. The GST hike is part of the Government’s effort to save ahead to prepare for infrastructure investments such as T5.

With the Government already pumping more than $9 billion into the airport expansion project, which is expected to cost tens of billions of dollars, it is clear that it will be Singaporeans who will bear the brunt of expansion with the new airport usage fees along with the tax hike.

Introducing the levy on his Facebook page, Transport Minister Khaw Boon Wan explained that T5 is “actually our second airport” and said that having the “airport community” contribute to costs is a “fair way to finance the project”:

BUILDING T5========== We are expanding #ChangiAirport to meet the rising demand from both passengers and air cargo….

Posted by Khaw Boon Wan on Wednesday, 28 February 2018

The new levy has been criticised by the International Air Transport Association (IATA) which told reporters that it is “disappointed” with the decision to charge travellers to fund T5. IATA’s regional vice-president (Asia Pacific) Conrad Clifford told reporters:

“It is unfair to expect passengers and airlines to pay in advance for a facility they may or may not use in the future when the facility is ready. It also goes against the International Civil Aviation Organization’s (ICAO) charging principle of cost relatedness – where passengers and airlines are charged for the cost of services actually used.
“We are also hoping to have greater transparency on what is the projected cost of Changi East and Terminal 5, and how the costs are being apportioned between the government, Changi Airport Group, airlines and passengers. 
“Making air travel more expensive for passengers will have a negative impact on travel, tourism, and as a result, aviation’s contribution to an economy. Increasing charges for airlines could also affect the financial viability of their services to and from the airport.”

This is not the first time Changi Airport has increased fees to finance expansion projects. The passenger service fee was last hiked in April 2013 as T4 was being developed and as T1 was being expanded.

106 COMMENTS

  1. For this, I have to agree with the govt that users of Changi have to help fund our T5 construction cost. Otherwise, citizens will end up footing the bill.

  2. Come on lah.. Hike GST you all make noise.. Complain poor people how to cope. So Khaw made passengers pay. You also make noise.. These people are rich enough to fly, you think they cannot afford the fee meh.. Besides many passengers will be foreigners.. Why you worry?

  3. I disagree because one this go Thur next will be road tax all drive pay addition to improve the road , then come HBD addition cost to maintain the building , all singing fund lock they don’t use PAP all one way traffic in no out, N park also come in all Singaporean have to pay they will say while Singapore is a garden so all pay to maintain the plant and tree

    • The Park Connector in front of my HDB unit has been used like a open burning place. I am suffering from all the smoke. Park Connector, Town Council and etc all just push responsibility to each other. Now still the same.

  4. Don’t forget KBW is a Msian and will eventually bring the millions he made in SG back to Msia to retire where his wealth will be multiplied 3x w/o effort. KLIA has been in Changi’s shadows for decades and what better way to divert air traffic to KLIA, Senai, Penang by making Changi more expensive overnight?

  5. Full of excuse. Long terms who gain? Make we all pay for live n they gain for decades. Don’t treat us like a fool. We r not your puppets.

  6. Those who agreed can submit your name and contribute. Those who dont agreed can submit your name and dont contribute. If this is the case, you people can said whatever you want.

  7. These fools thought that all international travellers are stupid, this showcase how greedy is PAP and impose taxes on everything and everywhere.

  8. Err velly good idea. Should have more good ideas so can collect more to help our dumb sinkies. More high tech bicycle tracks to be built.. collect bicycle tax, more high-class food courts.. collect food court development tax, aircon bus stops cum auto refreshment facility.. collect better bus ride tax, better MP to serve you… collect professional MP tax…what a fantastic government we have!

  9. Take an example from Indonesia. They have been building Highways and Express way. They do not get their citizens to pay upfront for the cost unlike these thieves from here. Can we expect to pay not airport after having paid in advance? Unlikely. Such stupidity and you 70% voted like fools.

  10. Another RUBBISH! On what ground do we need T5 since T4 has just been built? If everything needs to be so much ahead, why not build more schools instead of closing them!

  11. Better create a very good reasons for people to come here! I see the Greater Mekong Sub-Region as becoming a dynamic Hub, with a dynamic 12 year plan, with roads and other communication routes developing rapidly, language and translation training and educational hubs developing to serve deified terrirotires. All to access great new adventures for tourist who can fly from airport to airport and return home from vantage points, without much hassle. The same energy is seeping though the Archipelago where every year they are taking new leaps. Singapore in the near future has to answer the basic question – can we compete with lower costs, better services (with smiles) and original products, original exhibits and festivals that reflect Asian uniqueness!

  12. So since you said the public have to fund part of our responsibility to this T5 plan and that government is also coughing the other portion, can we also have two CEO in it?. I mean one is surely from you amd the other must be from us what?!. No free lunches!. We pay and we want a voice in it as well otherwise dont ask us to pay.

  13. Come on la ! Why we need another terminal. 4 already more then enough. How many planes are landing and taking off in the airport Everyday ? So after T5 then what ? T6 ? Rather then building T5 you can put the money to good use for other things.

  14. Another case of out of touch with the ground. Changi airport is already losing airlines using changi airport. Take BA and Qantas, changi airport was their transit hub with more than 25 flights landing here now not more than 3 flights. And those “new” airlines using changi are those budget airlines. And now you want to increase landing and parking fee? That is one sure way of driving the airlines out. Like PSA who lost many big contracts to our northern neighbor. Keep it up. Keep pushing price up and Singapore will be nothing but a dead town.

    • if we include Seletar airport which they are renovating to accommodate prop aircraft, we already have 5 terminals now. T5 is the 6 terminal!!! all these infrastructures build for who when you are forcing all the airlines out by raising landing and parking fee, i will assume that fuel price will increase as well. convert the runways to drag racing tracks?!!

  15. Singaporeans should then use Senai Airport in Johor, then transit in other countries’ airport. Save money. Don’t be a sucker. I myself don’t fly SIA because its fares are cut throat!

  16. Do we really need a T5??? Just look at some of the stastics… In 2017 we have 17,422 ,856 which works out to be about 4,355,714 per terminal. Unless we can justify that we are expecting about 22 millions travellers, I do not see the need of a terminal 5 when terminal 4 was just built a couple of years ago….

  17. This Malaysian, you think he care? Even if the whole Singapore sink, he goes back to stay in his big bungalow, drive big car with the million of Sing dollars he earn here. And that is the reason why you need TRUE BRED BORN CITIZEN to govern the country Not Foreign TRASH!!!

  18. Small country wanna to act like big brothers. 5 airports to cater an island. What a joke. Can see another 1 big white elephant soon after the durian and stadium.

  19. Why can’t come out with a 10 years bond for T5 project and get us to buy the bond to fund the project and allow us to enjoy return as dividend upon completion?

  20. This goondu cannot even settle Smrt now he want stir T5 and earn money. Want to get this levy to cover loss on Smrt? So when present the books- can cover losses.

  21. Can we build our new house and ask the public to help? Singapore si peh hao lian…if without a big head why still looking for the big hat!?!? The MRT problems already “sia suay” to the world, now T5…$$$!?

  22. He will use the same method to finance major overhaul or expansion of mrt by increasing fare
    IS UP TO THE 70% TO USE THE TRADITIONAL METHOD TO BRING HIM DOWN TO A COMMONER AND BACK TO HIS HOMETOWN

  23. why embark on such an ambitious and costly Changi East Project..? Why not affordable and realistic T5 without having to levy taxes etc.. Look at how the Changi Airport was developed by LKY and his team…it was done systematically over years, one terminal at a time…each terminal was upgraded as and when deemed necessary – without breaking the bank.

  24. Why our government only know how to increase taxes, COE, ERP and etc. They do not have ideals to get money from out source. It seems like useless to me to have so many MP and ministers. Very disappointed. Only know how to increase their own pay and bonus.

  25. Again you all say and do WHATEVER you gov Happy lah. Don’t need wayang post or talk so much lah..anyway citizens can only ZIP our mouth only..no human rights….

  26. I think nowadays SG has bad Fengshui. Because they closed up Singapore river, I think our Merlion have to shift again to marina south to shut the sea water.

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