Because it would be highly odd for the world’s best airport to carry out a crowdfunding campaign, extra fees will soon be forced on charged for all travelers flying out of Changi Airport to help foot the bill for major expansions in the future.
Unlike the GST hike, however, you won’t even have to wait until 2021 — the adjustment of aeronautical fees (for both passengers and airlines) will hit from July onwards. The newly created Airport Development Levy (ADL) will add another $10.80 for passengers departing from Changi Airport, while transiting passengers will also have to fork out an extra $3.
Oh, but it gets better. Changi Airport Group also announced it’s increasing its Passenger Service and Security Fee (PSSF) for all travelers departing from Singapore, which coincidentally will start in July as well. Currently, the PSSF is at $27.90, but that will be upped to $30.40 once July 1 arrives. Since they’re at it, the PSSF will be increased by $2.50 annually over the next six years. This PSSF hike won’t affect transit passengers, however, so that’s a bit of mercy.
So! Let’s break down the math.
Of course, we haven’t even included the fact that Changi Airport’s landing, parking, and aerobridge (LPA) fees will also be increased by one percent from July onwards. This too will rise by one percent annually every April 1 for the next six years.
But why the need for such a bombshell increase in charges? According to the Ministry of Transport and the Civil Aviation Authority of Singapore, the extra fees on travelers will be used to fund airport developments, such as the new Terminal 5 (scheduled for completion around 2030) and all other related infrastructure at Changi East, including a three-runway system and a network of tunnels to allow transfer of passengers, baggage, and airside vehicles between all terminals.
No one is disputing the fact that Changi Airport will indeed require expansion, thanks to passenger traffic and demand for air travel in the Asia-Pacific region projected to triple over the next two decades. But it’s pretty obvious that the government and the people who run Changi Airport want to capitalize on the immense volume of people who run to and from the airport — a number that seems to break records each year.
Changi Airport crossed a historical milestone of welcoming 60 million passengers in 2017, and increasing the fees and taxes for the rising millions of travelers ought to earn enough dough to construct a whole new airport, with probably some change to spare.
The majority of Changi East’s development cost is burdened by the Singapore Government, the press release stressed, with Changi Airport Group stating that it’s already invested $3.6 billion to date, and will take on a significant amount of debt in the future as well. Ah, woe is it.
TODAY reported that the International Air Transport Association expressed its disappointment over the upcoming changes, with its Asia Pacific vice-president Conrad Clifford calling it “unfair” to have passengers and airlines to fork out money in advance to build a facility which “may or may not be used” once it’s ready.
“It also goes against the International Civil Aviation Organization’s charging principle of cost-relatedness, where passengers and airlines are charged for the cost of services actually used,” TODAY quoted him as saying.
But Changi Airport Group assured that even with the adjustment in fees and taxes, the world’s best airport will continue to remain competitive as compared to other international air hubs.
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