Travellers flying out of Changi Airport to pay higher fees, charges from Nov 1

[DOBIEMKZ]

Travellers flying out of Changi Airport to pay higher fees, charges from Nov 1

https://www.straitstimes.com/singapore/transport/travellers-flying-out-of-changi-airport-to-pay-higher-fees-and-charges-from-nov-1

15 Sep 2022  10:00 PM

SINGAPORE - Passengers flying out of Changi Airport will have to pay more in airport charges from Nov 1, as international air travel continues to recover from the effects of Covid-19.

Passengers on flights originating from Changi Airport currently pay a departure fee of $52.30, comprising a $35.40 passenger service and security fee collected by Changi Airport Group (CAG), as well as a $6.10 aviation levy and a $10.80 airport development levy collected by the Government.

With the fee hike announced on Thursday, the total departure fee will go up by $6.90 to $59.20 from Nov 1, and subsequently increase by $3 to $62.20 from April 2023 and by another $3 to $65.20 from April 2024.

Passengers whose air tickets are issued before Nov 1 will not pay the higher fees and levies, said the Civil Aviation Authority of Singapore (CAAS) and CAG in a joint statement.

There will be no change to the departure fee for transit passengers, who will continue to pay $9 in airport charges for each flight.

Meanwhile, airlines will also have to pay more in aircraft parking and landing fees, CAAS and CAG added.

The statement said the fees and levies charged will fund CAG's operations, the upgrading of terminals and its future development plans.

The charges will also go towards the air hub development and regulatory functions of CAAS – such spending is expected to grow as CAAS works to rebuild Singapore’s position as a global air hub post-pandemic, the statement said.

Work on the upcoming Changi Airport Terminal 5 has restarted after a two-year pause brought on by Covid-19, with the mega-terminal expected to serve 50 million passengers a year when completed in the mid-2030s – more than T1 and T3 put together.

Airport charges at Changi were last revised in 2018. At that time, CAG said its passenger service and security fee would increase by $2.50 a year until 2024, which meant that the fee should have gone up from $35.40 in 2020 to $37.90 last year and $40.40 earlier this year.

But the authorities held off the planned increases in 2021 and 2022 in view of the pandemic.

From Nov 1, the fee will be raised to the planned $40.40 to cover the higher cost of operations, and increase again thereafter, CAG and CAAS said.

The aviation levy collected by CAAS will be raised for the first time since it was introduced in 2009 as well  – from $6.10 now to $8 from Nov 1. The levy, which applies only to departing passengers with flights originating from Changi Airport, will remain at $8 in 2023 and 2024.

The latest fee hike comes during the same week that Changi Airport Terminal 4 welcomed its first flights on Tuesday, after it was shut in May 2020 due to plummeting air traffic at the start of the pandemic.

The reopening of T4, which has a handling capacity of 16 million passengers a year, will add to Changi Airport's capacity, as will the reopening of the southern half of Terminal 2 from Oct 11.

This will restore Changi Airport's handling capacity to its pre-pandemic level of 70 million passengers a year.

Passenger traffic at the airport is now averaging 58 per cent of 2019 levels. Flight numbers are slightly higher, at 64 per cent.

SOURCE: CAAS, CAG

Changi Airport is not alone in increasing its fees, after more than two years of international border restrictions ate into the revenues of airports worldwide.

Last year, Schiphol airport in Amsterdam announced plans to increase the fees levied on airlines by 37 per cent over the next three years – a move that drew a sharp rebuke from the International Air Transport Association (Iata). 

The Dutch government plans to more than triple the country’s air passenger tax in January next year to €28.58 (S$40), up from €7.95 currently.

Mr Philip Goh, Iata’s regional vice-president for Asia-Pacific, said the timing of the fee increases at Changi Airport is less than ideal, as any additional costs will negatively impact the financials of airlines.

He noted that the Asia-Pacific airline industry is still in the early stages of recovery from the Covid-19 pandemic, with international passenger demand in the region only at about 36 per cent of 2019 levels as at July this year. In comparison, other regions have seen demand rebound to more than 70 per cent of 2019 levels.

“Aviation hubs like Singapore must ensure they remain cost-efficient in order to maintain their attractiveness to airline operators,” he said.

“We hope the next regulatory review of these charges in 2024 will keep in mind a need for moderation and improvements when considering any further increase in aviation charges.”

A spokesman for Jetstar Asia said it is disappointing that higher airport taxes are being introduced while airlines are still recovering from the pandemic, and from soaring fuel prices.

“We are committed to ensuring our fares remain affordable but as a low-cost carrier, taxes make up a significant part of our fares. We will work to manage these additional costs to minimise the impact to our customers,” she said.

SIA Group said it will implement all additional levies accordingly, and it aims to mitigate rising costs by improving productivity and operational efficiency, while exercising strict cost discipline.

Mr Mohshin Aziz, director of the Pangolin Aviation Recovery Fund, which invests in aviation businesses, said he was surprised by the timing of the fee hike.

“Shouldn’t we wait until the industry fully recovers?” he asked, noting that key markets like China and Japan have yet to fully reopen their borders.

Mr Shukor Yusof, founder of aviation consultancy Endau Analytics, said it is inevitable that airport charges are hiked. He added: “There’s a cost to ensure Changi retains its position as one of the world’s best.”

Ms Edlyn Phua, 31, who has plans to travel at the end of the year, said the increase in airport charges is not significant compared with other travel-related expenses, which have also risen in price.

“I can accept the increased levy since it has been nearly three years since I’ve travelled. The bigger consideration for me will be the destination and airfares,” the market research consultant added.

 

[Inlinefour]

zhenghu huat ah

 

dun noe go jb massage got increase bo 🙈🙉🙊

[1fast1]

13 minutes ago, Inlinefour said:

dun noe go jb massage got increase bo 🙈🙉🙊

Would that make it a Pole* Tax?

Oops, Poll Tax? 

*Massage Pole until TadPole cum out.

😁

Edited September 15, 2022 by Turboflat4

[Ody_2004]

With the ONLY airport in Singapore with NO competition what price they say oso LL must pay..

In my life i never heard of anyone not flying becos of such fee... just like ERP.. when u need to use u pay.. Singapore logic..

beside the Massive T5 construction cost had gone up.. who pay.. 

Oh.. even with competition nothing much change.. look at our petrol.. our phv price.. 😁

Edited September 15, 2022 by Ody_2004

[Philipkee]

1 hour ago, Ody_2004 said:

With the ONLY airport in Singapore with NO competition what price they say oso LL must pay..

Not true.  If you dare, you take a bus to senai airport and fly off from there.  I believe they can connect with international flights in KL. 

But I think one would rather just pay the extra tax.

This is not like petrol where savings can be substantial.

[Mkl22]

16 minutes ago, Philipkee said:

Not true.  If you dare, you take a bus to senai airport and fly off from there.  I believe they can connect with international flights in KL. 

But I think one would rather just pay the extra tax.

This is not like petrol where savings can be substantial.

I think that’s the worst one can do. I rather pay extra at changi. Why subject yourself to jams at causeway and boleh rubbish at senai airport and worst still,  with airasia or Malaysia airlines that flies to senai. Both are equally shit. 
 

when you have travelled to shit airports or travelled with shit airlines. You really get what you pay.  If it’s a business trip and no other airport then no choice, but if it’s for a holiday. Then why subject yourself to such torture, might as well don’t go. 
the crappiest airport in Asia for me so far has to be Manila,about 8years back. What a hell hole. 

Edited September 16, 2022 by Mkl22

[Ct3833]

Ok lah, COE we KPKB said we need a car, travel dont say we need to travel, people who can afford to make overseas trips can afford lah, people like me only go to ubin and sentosa, no complaints. I am still saving up my  next air ticket.😅😅

It is better than they tax everyone more to build  and maintain airports.

 

 

Edited September 16, 2022 by Ct3833

[Mustank]

Kee batam lah

[13177]

People go holiday already spend so much, what is $50+ $60+ airport charges to them?! 😅 Dont think people would get affected by this price hike and dont go holiday la.

[Stratovarius]

3 hours ago, Ody_2004 said:

With the ONLY airport in Singapore with NO competition what price they say oso LL must pay..

In my life i never heard of anyone not flying becos of such fee... just like ERP.. when u need to use u pay.. Singapore logic..

beside the Massive T5 construction cost had gone up.. who pay.. 

Oh.. even with competition nothing much change.. look at our petrol.. our phv price.. 😁

thats why they increase lo. They know we llst, no other choice. knn. 

[Cheesey74]

Indeed... in sg we r so used to llst regardless what our garment do, what is new, knn... haha!

[Philipkee]

22 hours ago, Mkl22 said:

I think that’s the worst one can do. I rather pay extra at changi. Why subject yourself to jams at causeway and boleh rubbish at senai airport and worst still,  with airasia or Malaysia airlines that flies to senai. Both are equally shit. 
 

when you have travelled to shit airports or travelled with shit airlines. You really get what you pay.  If it’s a business trip and no other airport then no choice, but if it’s for a holiday. Then why subject yourself to such torture, might as well don’t go. 
the crappiest airport in Asia for me so far has to be Manila,about 8years back. What a hell hole. 

Mine was Myanmar.  But it's not an international airport.  The local airport at kalaymyo.  Only one runway for one propeller plane daily.  Check in was at a gate with a person with fullscap paper.  

Plane scheduled to take off at 1100 hours can depart at 1050.  Lol