CHANGI AIRPORT'S FUTURE PLANS

CHANGI AIRPORT'S FUTURE PLANS

14.

Dr Lam Pin Min asked the Minister for Transport with the strong positive growth in Changi Airport's passenger traffic over the past one year (a) what will be the projected growth for the next three years; (b) whether the current three terminals will be able to cope with the projected increase; and (c) what will be the long-term plan for Changi Airport to remain as an aviation hub in the region.

Mr Raymond Lim Siang Keat: Changi Airport has recovered from the economic downturn that adversely affected the international aviation industry in 2008 and 2009, and has been registering positive traffic growth since August last year. In the first ten months of 2010, Changi Airport handled more than 34 million passengers and over 1.5 million tonnes of cargo. This represents an encouraging 15% and 13% year-on-year growth respectively. The Changi Airport Group (CAG) expects the passenger numbers to cross the annual 40 million passenger mark for the first time this year. This is an important milestone in the development of our aviation hub.

With Changi Airport's good traffic performance for 2010, we are optimistic that the momentum for traffic growth at Changi Airport will continue over the next few years. With its superior air connectivity, Changi Airport is well positioned to tap the growing Asia-Pacific air travel market, which is now the largest in the world(1). Industry bodies such as the International Air Transport Association (IATA) have also projected strong traffic growth of about 35% for the Asia Pacific region over the next four years(2), driven by the robust economic growth of the major economies in the region, such as China and India.

In addition, the increased pace of air services liberalisation in the region has led to growth in short-haul air services, which are likely to contribute even more significantly to Changi Airport's traffic in the coming years. The opening of the two Integrated Resorts, amongst other new tourist attractions in Singapore, will also boost traffic at Changi Airport. Barring major unexpected surprises, we should see healthy traffic growth ahead for Changi Airport.

Together, Changi Airport's three main terminals and Budget Terminal can handle up to 73 million passenger movements annually. This is about 45% more than the 40 million passenger movements that CAG expects for 2010. There is thus sufficient capacity at the airport for traffic growth in the near to medium term. Also, with the corporatisation of Changi Airport in July 2009, a regulatory framework has been put in place to provide for timely investment by CAG in airport infrastructure, runways and other facilities. This will be done through a collaborative, regular master-planning process between CAG and the Civil Aviation Authority of Singapore (CAAS). Building capacity ahead of demand has been

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a key driver for the success of Changi Airport, and the regulatory framework will ensure that, post-corporatisation, there will continue to be sufficient capacity at Changi Airport to handle future increases in traffic.

Ensuring Changi Airport's position as a leading aviation hub in the region and globally in the long term remains a key focus of the Ministry of Transport (MOT) and CAAS. We are cognisant that even as the international air travel market grows, competition for traffic, especially from airports with similar hub aspirations, is intensifying.

To stay ahead of the competition, we will continue to build on the strengths that have contributed to Singapore's success as an aviation hub thus far. This would include providing a world-class, safe and secure air transport system for the travelling public, pursuing air services liberalisation at the bilateral and multilateral levels to facilitate growth in local and foreign carriers operations to and beyond Singapore as well as ensuring that there is sufficient capacity to accommodate traffic growth. In this regard, the corporatisation of Changi Airport has also provided CAG as the airport operator with greater focus, private sector discipline and nimbleness to better anticipate the needs of airlines and passengers and stay ahead as a hub of choice.

(1)IATA ( http://www.iata.org/pressroom/pr/Pages/2010-02-01-01.aspx )
(2)IATA has estimated that passenger traffic in Asia-Pacific will increase from 638 million in end 2009 to 855 million by 2013.

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