Changi's Budget Terminal to make way for new and improved terminal
SINGAPORE: Airlines operating from Singapore's
Budget Terminal will soon operate from the main terminals at Changi
Airport.
That's because the Budget Terminal will be closed later this year
to make way for a new and improved terminal.
Travelling the no-frills way has become more popular.
Last year, one in four passengers at Changi Airport travelled on a
low-cost carrier (LCC), compared to about one in five in
2010.
In fact, low-cost carriers accounted for 28.6 percent of all
flights at Changi Airport.
And the outlook is bright.
Mr Shukor Yusof, Aviation Analyst at Standard & Poor's, said:
"Our understanding is that there are moves to review the operations
at the Budget Terminal because of the increasing traffic, because
of the expectation that there will be more and more budget airlines
that will ply into Singapore.
"I think there is no chronic shortage of facilities or any acute
problems that we are having at the LCCT (low-cost carrier
terminal). The numbers are increasing so fast that I think in the
next few years, issues concerning the comfort of passengers, the
issue of more aircraft, if you look at the budget airlines in the
region, everyone is buying new aircraft, every single one of them
are expanding. So within the next three to four to five years, you
will have more aircraft, more passengers.
"Indeed, more passengers are flying to Singapore by budget airline,
so what we have today in Changi in terms of the Budget Terminal, is
good for now. But within the next few years, it would struggle to
cope with the numbers."
Opened in 2006, the Budget Terminal can handle up to seven million
passengers annually.
And sources say the authorities are now looking at building a new
terminal to cater to future demand.
Many workers at the Budget Terminal are aware of the impending
closure. Shop owners have also been informed and some say it's no
surprise, as the lease for most concessions there will expire in a
few months.
The Budget Terminal currently serves Berjaya Air, Firefly, SEair,
Cebu Pacific and Tiger Airways.
MediaCorp understands the decision to move the carriers to the main
terminals was reached a few weeks ago.
It is understood that Tiger Airways will operate from Terminal 2,
possibly by June.
Provisions have been made for them to operate from Row 12 near to
Singapore Airlines, Silk Air and the new Scoot airline.
Berjaya Air and SEAir will also operate from Terminal 2, with
Berjaya making the shift as early as April.
When contacted, Firefly says it is aware of the move, but declined
to give details.
Analysts say the expected change should benefit carriers and
passengers.
Mr Shukor said: "I think it is going to be quite good for these
carriers because that would mean seamless connectivity for
passengers who want to hop onto another carrier at Terminal
2.
"In terms of people who are flying from Australia onwards to
Europe, for example, instead of being transported from the LCCT to
Terminal 2, they can just walk a short distance and go onto the
next flight and that's clearly an advantage for Tiger."
Observers say when the budget carriers begin operations from the
main terminals, they could be faced with higher costs.
But it is understood that authorities are working on a special
arrangement with the airlines to help them address the issue.
Changes have also been made to aero-bridges at Terminal 2 to
accommodate the additional flights.
Observers say it should not take more than two years for the new
terminal to be ready.
- CNA/de