BUDGET TERMINAL

BUDGET TERMINAL

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(Utilisation rate): **

12.

Dr Fatimah Lateef asked the Minister for Transport (a) what is the utilisation rate of the new Budget Terminal; (b) whether his Ministry anticipates more airlines using the Terminal; and (c) what is the expected rate of increase in utilisation over the next three to five years.

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Mr Raymond Lim Siang Keat: Changi's Budget Terminal was opened in March last year. In the first year of its operations, the Budget Terminal handled about 1.36 million passengers. It is now handling about 130,000 passengers a month, utilising approximately 60% of its annual handling capacity of 2.7 million passengers.

Currently, there are two carriers operating at the Budget Terminal, namely, Tiger Airways and Cebu Pacific Air. The other Low Cost Carriers, like Jetstar Asia and Thai Air Asia, operate from Terminal One. The Civil Aviation Authority of Singapore is constantly speaking with prospective carriers to use the Budget Terminal.

Low Cost Carriers currently account for about 15% of total passenger flights at Changi Airport. Passenger traffic by Low Cost Carriers at Changi grew by 47% in 2006. We anticipate traffic in this market segment to carry on growing strongly, in view of the robust demand for budget travel in the region and further liberalisation of market access among ASEAN countries. Hence, we can expect continued strong traffic growth at the Budget Terminal in the coming years.

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