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Old 28th February 2018, 08:49 PM   #1
zilchster
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Default Singapore Changi Airport to raise place an Airport Development Levy

In short:

From Jul 1 - airport development levy of $10.80 on pax departing Singapore and $3.00 for transfer pax.

From April 1 2019 to April 1 2024, an increase of $2.50 each year for the passenger service and security fee.
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Old 28th February 2018, 08:54 PM   #2
9V-SPL
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Default Airport Development Levy for travellers using Changi Airport from July 2018

Changi Airport passengers to pay new levy to fund developments including T5


https://www.channelnewsasia.com/news...engers-9999526

Quote:
SINGAPORE: Travellers flying out of Changi Airport will have to pay up to S$13.30 more from Jul 1 with an increase in passenger fees and a new levy to fund a major expansion for the airport, including the building of Terminal 5 (T5).
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https://www.todayonline.com/singapor...irport-charges

Quote:
Here are excerpts of the reactions by the IATA and affected airlines:

"The airline industry is against pre-funding for infrastructure projects. 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 Organisation's (ICAO) charging principle of cost relatedness – where passengers and airlines are charged for the cost of services actually used."

- The International Air Transport Association

"Jetstar Asia is disappointed with the introduction of more airport taxes to fund Changi Airport's Terminal 5 development. These increases in airport costs and new levies will have to be passed on to customers, which means higher airfares."

- Jetstar Asia

"We note the new charges and will implement the necessary changes accordingly."

- Singapore Airlines
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Old 28th February 2018, 08:57 PM   #3
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Oops, could the Moderators merge this with zilchster's thread? Thanks!
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Old 1st March 2018, 07:44 AM   #4
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Changi increased fees already to (reported) extend T1 and build T4.......both of which are basically done. Whilst T5 is certainly much bigger, the same additional fee should be used since we know it will never be removed even after works are paid.

Technically, expansions and remodelling of T1 and the others should come out of previous operating profits and no additional fee should have been taken.

Six years later, out of SIN we have to pay $62 taxes, basically double what they are today.
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Old 1st March 2018, 09:06 AM   #5
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This is a very unpopular move by the govt and the increase is a 27% from $34 to $47.30 which is a very high hike. However I do not agree to the increase as its for another 12 years before T5 even opens. It's like paying forward increase for the next 12 years when one may not even be doing much flying or not even flying at all in even the next 5 years down the road and not to say its for next 12 years! The govt can compare this to that of HK for the 3rd runway but for HK it be ready in 3 to 4 years time, bt ours is for 12 whole years. It's akin to paying a 27% increase in bus fares so that in future there be better buses?? The quantum 27% jump is very high indeed. It will be fair if the increase is levied when T5 opens. Paying ahead for 12 years is simply not right. And if the govt cannot fund such big ambition, then it ought to relook into the costs and grandiose of T5.
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Old 2nd March 2018, 07:56 AM   #6
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I don't spend much time promoting the wonders of free markets and deregulation, so it's pretty telling if my mind suddenly heads in exactly that direction.

Changi is out there competing with global hubs like DXB, AUH and DOH, and other Asian hubs like HKG and BKK, not to mention any number of emerging ones in the region. A massive tax hike on Changi passenger movements sounds pretty counterproductive to the goal of increasing Changi's competitiveness.
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Old 2nd March 2018, 04:45 PM   #7
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Quote:
Originally Posted by SQ228 View Post
Changi is out there competing with global hubs like DXB, AUH and DOH, and other Asian hubs like HKG and BKK, not to mention any number of emerging ones in the region.
If you look at the busiest routes out of SIN, I don't think the ME hubs are competition. I doubt BKK and HKG are either. Plus Changi's increasing taxes on transit passengers only nominally (by 50% but really, from $6 to $9).

http://www.changiairport.com/corpora...for-2017-74652

It's us Singapore-based travelers who are going to be hurt. And therein lies the power of monopoly. It's not like we have meaningful choices out of JHB.

Last edited by 259850; 2nd March 2018 at 04:56 PM.. Reason: More details
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Old 2nd March 2018, 10:17 PM   #8
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Quote:
Originally Posted by 259850 View Post
If you look at the busiest routes out of SIN, I don't think the ME hubs are competition. I doubt BKK and HKG are either. Plus Changi's increasing taxes on transit passengers only nominally (by 50% but really, from $6 to $9).

http://www.changiairport.com/corpora...for-2017-74652

It's us Singapore-based travelers who are going to be hurt. And therein lies the power of monopoly. It's not like we have meaningful choices out of JHB.
Well, technically Singapore-based “regional” travelers will soon have an alternative out of Seletar airport. I wonder what will Seletar airport PSC be? Technically should be cheaper than that at Changi.

While CAAS would understandably impose the same S$6 Aviation Levy, I doubt it will impose Airport Development Levy for passengers out of Seletar Airport.

Maybe it’s a blessing in disguise for Firefly to be kicked out of Changi Airport. They can increase their frequency on key Singapore - Kuala Lumpur Subang route and attract more passengers to fly out of Seletar due to the nature of the lower airport charges. I believe Malindo propellers operation will also come into Seletar. Perhaps it’s also attractive proposition to see Seletar turboprop operation develop as Subang did.

Would then smaller jets like Bombardier CS100 / CS300, CRJ1000 or Embraer E190/E90 be popular for ASEAN airliners to use to serve the unique regional route out of Seletar, if CAAS allows that?
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Old 3rd March 2018, 02:11 PM   #9
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A long time ago, the late MM Lee Kuan Yew said that if, one day, he had to choose between Singapore Airlines and Changi Airport, he would sacrifice SIA to ensure Singapore's survival as a nation. Ensuring Changi Airport's continued status as a global aviation hub is a cornerstone to Singapore's survival in this competitive world. Jewel Changi Airport was set up for this very reason (to be more precise, it is part of the government's strategic vision for the future).

How things have changed. With the increase in levy at Changi, IATA is unhappy. Airlines are making plans to divert flights away from Changi. I can't imagine what Singapore will be like 20 years from now.

International Air Transport Association 'disappointed' with new Changi Airport passenger levy

Jetstar sees changes to flights as Singapore airport fees rise
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Old 3rd March 2018, 05:58 PM   #10
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What especially irks me is that travellers are paying for non-travellers to enjoy the airport facilities that the government is trying to enhance in order to attract more non-travelling visitors.
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Old 3rd March 2018, 11:34 PM   #11
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I think what would make this more palatable is greater transparency.

What is the total cost? How is the cost split between land preparation, third runway works, the new terminal, etc? What are the other sources of financing? Will the levy be waived once costs are recouped?

HKIA has done well in this regard. Although their levy is higher, they have been upfront about costs and benefits, and only 20% of the cost has been passed on as an airport development fee.

https://www.threerunwaysystem.com/en...-arrangements/
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Old 4th March 2018, 05:47 PM   #12
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How is $3 for transit pax and $14-$29 for pax originating in SG fair--is this the so-called luxury tax that the government was speaking of? A tax on Singaporeans/ PRs holidaying (and going on business trips lol)?
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Old 5th March 2018, 12:02 PM   #13
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its a jump of 27% from July to $47.30 as passenger airport total tax. This tax effective from this July 2018 is for the next 12 years before T5 even opens.
Another issue is that passengers are also sponsoring people from going to the airport to shop and for F & B outets and who are not even flying.
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Old 5th July 2018, 02:46 PM   #14
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Quote:
Firefly passengers, who now pay $47.30 in airport fees and levies at Changi, will pay $29 when the airline moves to Seletar.

Source: https://www.straitstimes.com/singapo...en-in-december
It seems PSSF (passenger service and security fee) at Seletar to be S$25.90 as the Aviation Levy imposed by CAAS for passenger departing from Seletar airport is S$3.10 (See: https://www.caas.gov.sg/docs/default...order-2009.pdf)

Nonetheless it is very attractive to fly from Seletar in the future with S$18.30 cheaper fees. But I saw Firefly booking with the breakdown of fares Admin Fee ≈18.99 SGD
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