The International Air Transport Association has expressed disappointment with the decision by the Singapore government to pre-fund the infrastructure development for Changi East and Terminal 5.
“While we recognize that the government will be bearing the majority of the costs for the development of Changi East and Terminal 5, we are still disappointed with the decision to proceed with the pre-funding model despite the feedback provided by the industry. It is unfair to expect passengers and airlines pay in advance for a facility they may nor may not use in the future when the facility is ready,” said Conrad Clifford, IATA’s Regional Vice President for Asia Pacific. Pre-funding also goes against the International Civil Aviation Organization’s (ICAO) charging principle of cost relatedness, where passengers and airlines are charged for the services actually used.
Clifford made these comments following the announcement by the Civil Aviation Authority of Singapore and the Changi Airport Group of the introduction of an Airport Development Levy and increases in fees and charges respectively. He also expressed the need for greater transparency on the projected cost of Changi East and Terminal 5, and how the costs are being apportioned between the government, CAG, airlines and passengers.
“Regardless of the funding model, it is important that T5 maintains the high standards and convenience that airlines and travelers have come to expect of Changi Airport,” said Clifford.