Fees are always a hot topic in the airline world. Singapore’s Changi Airport is currently taking some heat for its decision to impose a new levy on passengers. The airport is using the levy to help fund the planned development of Changi East and Terminal 5. The new departure charges will total S$47.30 – an increase of S$13.30 – when it becomes effective on July 1 for passengers flying out of Changi Airport.
Changi Airport will also be raising aeronautical charges for both passengers and airlines over the next six years. The aeronautical fee hike will be used to fund the upgrading and expansion project. The $2.50 increase in aeronautical charges will kick in on July 1 and will go up by S$2.50 every year from April 1 2019 to April 1, 2024, for all passengers departing from Changi Airport.
The S$13.30 increase in departure fees effective this July comprises the new Airport Development Levy (ADL) "“ chargeable at S$10.80 for departing passengers – and $2.50 increase in aeronautical charges for passengers. The new ADL is set at S$3 for transit passengers. Transit passengers will not have to deal with the fee hikes in aeronautical charges.
The International Air Transport Association (IATA) is voicing disapproval over Changi Airport’s decision to using pre-funding measures to finance its upcoming project. The association is fundamentally opposed to the idea of passengers paying for facilities and utilities that they cannot yet use.
Changi Airport is essentially asking the passengers of today to pay in advance for improvements that will be made in the future. This is an important point because the move is in direct opposition to the International Civil Aviation Organization’s (ICAO) principle of only charging passengers and airlines for services that are actually being used.
Airlines are also disappointed in Changi Airport’s decision to impose a new levy. Airlines will see their landing, parking and aerobridge (LPA) fees increase by 1% each year for six years. Jetstar Asia has stated that the airport’s decision could cause the airline to increase fares departing from Singapore by as much as 25 percent…
