Singapore Changi to invest S$3 billion on upgrading facilities

Changi Airport Group (CAG) is to invest S$3 billion over the next six years on enhancing Terminals 1 to 4 at Singapore Changi Airport.

The investment programme will improve services such as baggage handling, check-in, immigration and Skytrain connections between terminals, as well as to replace end-of-life systems to facilitate smoother passenger and airline experience.

According to CAG, the investments will help Changi Airport stay competitive and meet rising demand for air travel before Terminal 5 is operational in the mid-2030s.

It notes that airport charges will be progressively raised between 2025 and 2030, to fund these investments, and cater for higher operating costs such as manpower.

This, says CAG, will also enable the recovery of significant investments made during the COVID-19 pandemic, such as the expansion of Terminal 2 and check-in counter capacity in Terminal 3, when passenger fees and airlines charges were frozen and planned increases were suspended.

To help airlines with the transition, a 50% rebate on increases in landing, parking and aerobridge (LPA) charges will be given to airlines for the first six months.

Investments to keep Changi Airport at the forefront

CAG says: “Air travel demand is expected to grow strongly over the next few decades, particularly in the Asia-Pacific region. Both IATA and ACI have projected global passenger volumes to at least double between 2023 and 2043, with Asia-Pacific recording the fastest rise, and contributing to more than half of this growth.

“As a major air hub for the Asia-Pacific region and beyond, Changi Airport is well-poised to serve this rise in demand and provide better connectivity to travellers.

“The aviation sector will continue to be a key driver of economic growth for Singapore and provide more and better jobs for Singaporeans.”

It adds: “Over the past few years, including during the COVID-19 pandemic, CAG has invested heavily in airport infrastructure to position the Changi air hub for recovery and growth.

“These include the significant expansion and upgrading of Changi Airport Terminal 2 spanning the departure, immigration and transit halls and its baggage handling system, and increasing the terminal’s handling capacity by five million to 28 million passengers per annum; additional check-in facilities in Terminal 3; new aircraft parking stands as well as operationalisation of the three-runway system.

“CAG will further invest S$3 billion over the next few years to expand Changi Airport’s capacity, efficiency and resilience, improve the passenger experience and make the airport a more attractive place to work.”