"Changi Airport moves up to second-cheapest in Asia"

Tuesday, September 2, 2003

Changi Airport moves up to second-cheapest in Asia
Fighting travel slump with rate cuts, Changi becomes more attractive to
airlines but is still trailing KL airport
By Karamjit Kaur
Singapore - The Straights Times


CHANGI Airport is now cheaper for airlines to fly to and has narrowed the
gap with the Kuala Lumpur International Airport (KLIA).

A year ago, it was the third cheapest international airport in Asia, behind
KL and Bangkok.

Changi is still behind KLIA, but is now the second cheapest in Asia.

Malaysia moved speedily last year to attract business to its new airport,
which opened in 1998, by waiving all landing and parking fees for new
airlines flying into KLIA for five years.

But the downturn in travel, sparked by the Sept 11 terrorist attacks in
America, saw Changi fighting back with a $210-million Air Hub Development
Fund last November.

The fund helps the Civil Aviation Authority of Singapore (CAAS), which
manages Changi, to offer competitive charges and some free landings.

It also came in handy when Sars caused a drastic drop in the number of
flights and passengers this year.

The International Air Transport Association (Iata) ranked 11 airports in the
region in June, comparing the charges payable for a Boeing 747-400 with a
three-hour turnaround time.

Charges at KLIA were the lowest at $1,018 - and that was $959 less than last
year.

Changi charged $2,524, a sharp drop of $1,803.

Third-placed Jakarta charged $3,594, or just over $1,000 more than Changi.

The most expensive was Tokyo's Narita Airport, which charged $16,956.

Apart from lowered rates for landing and use of aerobridges, which
passengers use to pass between plane and airport, Changi now offers free
landing to new airlines and carriers flying new city links.

Among those which have benefited are three new airlines - Xiamen, Royal
Nepal and Merpati Nusantara.

United Airlines, Northwest Airlines and Singapore Airlines Cargo also touch
down for free at Changi when they arrive from new destinations.

The concessions introduced in January will be in force for two years.

In addition, all airlines flying to Singapore now enjoy a 45 per cent rebate
in landing fees. This will be cut to 15 per cent from Jan 1 next year and
the new rates will be valid until the end of 2005.

Speaking to The Straits Times yesterday, Mr Lasantha Subasinghe, Iata's
assistant director (user charges), said: 'Changi Airport offers airlines
value for money. The facilities provided are good and yet the rates are very
competitive.'

A CAAS spokesman said: 'Many have the impression that Changi's landing,
parking and aerobridge charges are high. These figures indicate that is not
the case.'

Industry analysts said CAAS efforts to cut costs for airlines were timely
and in line with various measures to ensure Singapore companies remain
competitive.

RACE TO STAY AHEAD

What airports charge for a Boeing 747-400 with three-hour turnaround

AIRPORTS                        TOTAL CHARGES
                                           Now       Previously
Malaysia - KL                     $1,018      $1,977
Singapore                            $2,524      $4,327
Indonesia - Jakarta              $3,594      $4,555
Thailand - Bangkok             $4,086*    $4,086
Korea - Incheon                  $4,478      $4,931
Taiwan - Taipei                    $5,015      $5,750
Philippines - Manila              $5,199      $5,739
Macau                                 $5,496      $6,655
Hong Kong                          $6,640      $7,387
China                                   $8,132      $9,819
Japan Narita                        $16,956*  $16,956

NOTE: * No rebates offered

Source: IATA

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************