Changi Airport Group (CAG) will invest S$3 billion (US$2.24 billion) over the next six years in Singapore Changi Airport Terminals 1 to 4 to 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.
The investments will help Changi Airport stay competitive and meet rising demand for air travel before Terminal 5 is operational in the mid-2030s.
In the announcement, Changi said airport charges will be progressively raised between 2025 and 2030 to fund these investments and cover higher operating costs, such as manpower.
This also enables 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 airline charges were frozen and planned increases were suspended.
To help airlines with the transition, Changi Airport noted that airlines will receive a 50% rebate on increases in landing, parking and aerobridge (LPA) charges for the first six months.
Changi Airport investments
With air travel demand expected to grow strongly over the next few decades, particularly in the Asia-Pacific region, the airport noted that as a major air hub for the Asia-Pacific region, 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," CAG said.
Over the past few years, including during the COVID-19 pandemic, CAG noted that it 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, 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; and 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," it said.
CAG noted that the investments include rejuvenating Skytrain subsystems, upgrading Terminal 3's Baggage Handling System and the new Terminal 1 to 3 Inter-Terminal Baggage Conveyance System, a new rooftop Inter-Terminal Baggage Conveyance System connecting Terminal 1 to Terminal 3, more check-in rows at Terminal check-ins, and strengthening airside infrastructure.
CAG said it also plans to construct new airside facilities and more remote aircraft parking stands for both passenger and cargo aircraft, bringing the total number of aircraft stands to more than 200.
Increase in airport charges and aviation levy
CAG said airport charges will be increased progressively between 2025 and 2030 to fund the new investments and cater for higher operating costs, including for manpower and energy.
