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Changi has slow start in plans to become low-cost hub
Jeremy Colson, Singapore

Jeremy Colson, Singapore  
(20th May 2004)

SINGAPORE is pitching hard to entice low-cost carriers (LCCs) to use its Changi Airport as a base, but so far only Singapore Airline's subsidiary, Tiger Air, is biting.

Civil Aviation Authority of Singapore (CAAS) director, Mr Looi Han Seng, told TTG Daily News yesterday discussions for the construction of a new terminal specially for LCCs were still underway.

“We are in talks with Tiger Air and others. Tiger seems enthusiastic but we need commitment from others before going ahead with the project,” Mr Looi said, adding the terminal would have basic facilities only and no airbridges. But Valuair executive director, Mr Jimmy Lau, said his carrier would not use Singapore as a base unless it was allowed to handle its own ground services.

The terminal would be within Changi and would take about 20 months to build. Meanwhile, he said incentives continue to be provided for LCCs through a S$210 million (US$131 million) fund which gives users a 15 per cent rebate on landing fees and office rentals at Changi.

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