Luxury air travel soaring to new heights

Keen competition in the luxury air travel segment is seeing an 'arms race' in first class flight, with big commercial airlines overhauling their premium products to expand their suite of offerings. Meanwhile, industry watchers have said private jet travel is also taking off for short-haul flights around the region.

Earlier in November, Air France launched its new first class 'La Premiere' suites in Singapore.

Four individual suites of about three square metres each are on board 19 of the airline's Boeing 777-300 fleet, and they will be available on daily flights between Singapore and Paris by the middle of Jan 2015.

Mr Nicolas Ricard, Country Manager Singapore, Air France-KLM said: "Luxury air travel demand is growing in Asia. This is a target for Air France. Air France is undergoing significant transformation with an investment of €500 million in upgrading all the long haul products, and services. This is not only La Premiere suite, but also other cabins."

In May, Middle Eastern airline Etihad unveiled its new first class suite, the Residence, which will feature a living room, double bedroom and ensuite shower room.

Also within the past month, British Airways announced that it has added Singapore as its fifth destination in its network of A380 service routes from London. The move is part of a £5 billion investment the carrier has made in the last two years to upgrade its products and services.

Mr Robert Williams, Regional General Manager, Southeast Asia, British Airways, said: "The A380 allows us to offer even more space to first class customers than they are already enjoying on the other air craft in the fleet. They have 30 per cent more space in their seat, 60 per cent more personal storage.”

“We maintain Singapore in Southeast Asia as a hub down to Australia as part of the traditional kangaroo routes between Europe and Australia. Those stories demonstrate our commitment to SEA and what we're doing in this market," he added.

DEMAND FOR LUXURY AIR TRAVEL DEPRESSED: ANALYSTS

Despite the 'arms race', aviation analysts said demand for luxury air travel is currently somewhat depressed. According to statistics from the International Air Transport Association (IATA), first and business class travel within Asia contracted around two per cent in September, compared to a year ago.

IATA said overall traffic growth within Asia has expanded only 0.2 per cent during the first three quarters of 2014, compared to the same period in 2013. The slowdown has been related to notable declines in international travel for Thailand and Malaysia, due to geopolitical events and weakness in the Chinese economy.

Internationally, current performance for premium travel is relatively weak, growing by 2.3 per cent year-on-year in September, compared to the overall rate of increase of 3.7 per cent during the first three quarters of 2014.

Changi Airport Group said about 10 per cent of passengers fly on first and business class.

Mr Greg Waldron, Asia Managing Editor, Flightglobal said: "These products tend to be very sensitive to economic issues. So for example, in a weak economy, you might get people trading down from first class to business, and from business class to economy. And certain things have also depressed first class travel recently - the crackdown on corruption in China, that has seen a reduction in some first class usage."

GROWING DEMAND FOR PRIVATE JETS FOR SHORT HAUL FLIGHTS

While airlines largely offer a product for long-haul travel, many do not have a first class cabin for short-haul flights. Instead, aviation analysts said there is a growing demand for private jet chartering for regional travel. Industry players have also said supply is on the rise.

It is estimated that there are more than 30 private jets based in Singapore, up from just about 10 aircraft five years ago. About half of these are available for charter.

Mr Stefan Woods, Sales Director, Singapore Air Charter said: "What that's done is it has brought the price down for the consumer, which is a good thing. A lot of our clients locally are local businesses that use our services as a tool.”

“It's not a luxury at all. It's a necessity to go to some places that the airlines don't service, or they service infrequently. Sometimes airlines don't have business class on board, and it's not as flexible as having a private jet,” he said.

Mr Woods also said first class passengers on ultra-long-haul flights often arrive in Singapore and head straight to a private jet to a destination in the region.

According to Changi Airport Group, business aircraft movements at Seletar Airport have grown at an average annual rate of almost 20 per cent from 2009 to 2013.

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$1.1b to prep land for T5 and runway

It will cost more than a billion dollars to clear the land and strengthen the soil before Changi Airport's Terminal 5 and third runway can be built, underlining the scale and complexity of a project to boost Changi's competitiveness.

A $1.1 billion contract - believed to be the largest so far for the airport project - has been awarded to a team comprising Japanese construction firm Penta-Ocean, which specialises in marine works and land reclamation, and Singapore's Koon Construction and Transport.

A spokesman for the Transport Ministry told The Straits Times that the works to be carried out "are complex in nature and in more than 70 phases across more than 1,000ha" - just slightly smaller than the airport's current premises.

The works will be carried out over the next few years, she said.

T5, which will be built on reclaimed land, will be Changi's biggest. To be completed in the middle of the next decade, T5 will be able to process up to 50 million passengers a year - more than T2 and T3 put together.

The project - the biggest airport works since the move from Paya Lebar Airport to Changi in 1981 - aims to cement Changi Airport's position as the region's premier airport and hub.

From 66 million passengers now, Changi will be able to handle up to 85 million by 2018, when T4 is ready and T1 is expanded. By the time T5 starts operating, Changi's annual capacity will hit 135 million passengers.

Besides a new mega terminal, a third runway is also planned.

An existing landing strip at the site, currently used for military flights, will be strengthened and lengthened, after which it will be linked to the existing two runways via 40km of taxiways.

There are also plans to build aircraft maintenance and repair facilities, as well as hotels and offices, at the new site.

To integrate the operations of the existing airport and future terminal, work has already started on a new road to replace Changi Coast Road, the Land Transport Authority (LTA) said.

In anticipation of higher traffic in the future, work is also being done to expand Tanah Merah Coast Road, a spokesman said.

This will also ensure smooth traffic flow during the construction phase, when trucks and other heavy vehicles travel to and from the site, he said.

The two road contracts - worth a total of about $81 million - were awarded in April, LTA said, and the works are expected to be done by the middle of 2017.

Kok Min Yee, general manager of Tanah Merah Country Club said: "So far, the works have not led to any complaints from members."

If traffic is affected, the club would "certainly take it up" with LTA, he said.

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New direct flight connects Singapore and Mongolia

Singapore Changi Airport on Wednesday (Sep 24) welcomed the arrival of MIAT Mongolian Airlines, directly connecting Singapore and Mongolia for the first time.

In a media release, Changi Airport Group (CAG) said that the Mongolian national carrier will operate a twice-weekly service between Ulaanbaatar and Singapore, with a transit in Beijing for other passengers. The route will utilise a 174-seat Boeing 737-800 aircraft.

A delegation led by Mongolia's Minister of Road and Transportation Gansukh Amarjargal, together with Mr Gungaa Jargalsaikhan, President and CEO of MIAT Mongolian Airlines, was on board the inaugural flight that arrived at Changi Airport at 5pm on Wednesday.

They were welcomed by Mongolia's ambassador to Singapore Banzragch Delgermaa, and Mr Yam Kum Weng, CAG Executive Vice President for Air Hub and Development.

“We are proud to welcome Mongolia’s national carrier to the family of airlines at Changi Airport," said Mr Yam. "Mongolia has enjoyed strong economic growth and as the country opens up its economy and resource sectors, there will be more business and investment opportunities not only between our two countries, but also between Mongolia and Asia-Pacific. The direct Ulaanbaatar-Singapore service by MIAT Mongolian Airlines is thus timely to support growing demand for business and leisure travel.”

To celebrate the start of its operations at Changi Airport, MIAT Mongolian Airlines is offering promotional fares on return economy class tickets starting from S$670.

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Changi Airport offers more rebates, incentives for airlines

Changi Airport Group (CAG) on Wednesday (Sep 3) provided additional details of the rebates and incentives offered to airlines under its Growth and Assistance Incentive (GAIN) programme, which was announced in June.

It will be offering landing fee rebates for long-haul flights and incentives for airlines to grow transfer traffic through Changi Airport, and these measures would amount to as much as S$50 million over the next 19 months for airlines operating at the Airport, said CAG in its press release.

Specifically, it will offer a 50 per cent rebate on landing fees for all non-stop long-haul passenger flights from Sep 1, 2014 to Mar 31, 2016.

CAG is also launching its Gateway Incentive next month, in which all airlines at Changi Airport will receive a S$10 incentive for every incremental departing transit or transfer passenger handled. The 18-month scheme is effective from Oct 1 this year, and will also include passengers carried by foreign airlines interlining at the airport, it said.

"The new incentives are targeted at long-haul flights and transfer traffic, two important segments of our air traffic. Long-haul services are a key part of Changi Airport’s global connectivity. CAG recognises that airlines commit significant investment into their long haul flights, hence CAG will be offering landing rebates on these flights to help share airlines’ costs, said Mr Lim Ching Kiat, CAG's Senior Vice President for Market Development.

"Transfer traffic is another important component of our air traffic. Therefore, we will be rolling out incentives to reward our airline partners for growing transfer traffic. This is on top of the extension of our popular Changi Transit Programme which offers attractive vouchers to passengers using Changi as their transfer point.”

CAG had announced in June that it is offering all airlines operating at Changi Airport across-the-board rebates of 50 per cent aircraft parking fees and 15 per cent on aerobridge fees between Jul 1, 2014 and Jun 30, 2015 under its GAIN programme.

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Changi Airport June passenger traffic: Highest in 2014, but down from a year ago

A total of 4.65 million passengers passed through Changi Airport in June, the highest number this year but a drop of 0.3 per cent when compared with a year ago, Changi Airport Group (CAG) said on Wednesday (July 23).

This is the third monthly on-year decline this year, according to figures provided by CAG.

Aircraft movements for the month dipped 0.5 per cent to 28,130. On the cargo front, 154,700 tonnes of airfreight were processed last month, 0.2 per cent lesser than a year before.

In the first half of this year, 26.61 million passengers travelled through Changi Airport, 1.4 per cent more than the corresponding period in 2013. During the same six-month period, flight movements increased 2.9 per cent to 171,680 while cargo shipments totalled 910,100 tonnes, a growth of 0.6 per cent on-year.

Travel demand within the Asia-Pacific region spurred traffic growth for the half-year, with traffic to North-east Asia and South Asia growing 5.1 per cent and 4.1 per cent, respectively. This was offset by weaker demand for travel to Thailand, which declined 18 per cent for the half-year.

Jakarta continued to top the list of Changi Airport’s busiest routes, followed by Hong Kong, Kuala Lumpur, Bangkok and Manila. Denpasar-Bali registered a strong 31 per cent increase in the first six months of 2014 compared to a year ago, the fastest growing among the top 10 routes.

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Changi Airport's passenger traffic up 2% in May

Changi Airport saw 4.37 million passenger movements in May, an increase of 2 per cent from a year ago, said Changi Airport Group (CAG) on Monday (June 23).

The growth in passenger traffic was supported by an increase in air travel between Singapore and North-East Asia, South Asia and South-West Pacific, offset by weaker performance on some South-East Asian routes, CAG said.

Among Changi’s top 10 markets, Hong Kong and Vietnam registered double-digit increases. Travel to and from Thailand continued to be affected by the political situation, decreasing by 17 per cent, with Bangkok and Phuket traffic dropping by 24 per cent and 7 per cent, respectively.

In terms of landings and take-offs, the 28,930 registered last month was a 1.7 per cent increase compared with May 2013. On the cargo front, 157,500 tonnes of airfreight were processed at Changi last month, a 3.5 per cent increase year-on-year.

From January to May, a total of 21.95 million passenger movements were recorded at Changi Airport, an increase of 1.8 per cent from the same period a year ago. Aircraft landings and take-offs grew by 3.6 per cent to 143,550, while cargo shipments increased by 0.8 per cent to 755,400 tonnes for the same period, CAG said.

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Changi Airport unveils S$100m scheme to combat passenger traffic decline

Changi Airport Group (CAG) announced on Thursday (June 12) a wide-ranging Growth and Assistance Incentive (GAIN) programme aimed at boosting passenger traffic and laying the foundation for more efficient operations at Changi Airport in the years ahead.

In a statement, CAG said it will commit S$100 million to the GAIN programme, which will be implemented over the coming year. For its airline partners, CAG will offer an across-the-board reduction in operating costs, including rebates of 50 per cent on aircraft parking fees and 15 per cent on aerobridge fees. This will be applicable from July 1, 2014, to June 30, 2015, it added.

It will also introduce a new package that rewards airlines for growing transfer traffic at Changi Airport, and encourage them to get on its FAST@Changi initiative that offers self-service options for departing passengers.

In order to stimulate traffic demand, CAG will invest in destination marketing campaigns to promote Singapore in major source markets like Australia, China, India, Indonesia and Russia.

“The incentives and support programmes beyond the coming year will be calibrated depending on how traffic patterns at Changi Airport and how the operating conditions of airlines in the region develop,” it added.

DECLINING PASSENGER TRAFFIC

CAG also acknowledged a decline in passenger traffic, saying it has seen year-on-year declines in February and March this year. It attributed market factors such as the rise of the Singapore dollar versus key travel markets such as India and Indonesia, and political uncertainty in Thailand, to the drop.

Reduced Chinese demand for travel to South-East Asia has also dampened passenger traffic to and from these key markets, it said.

CAG CEO Lee Seow Hiang said: “We are cognisant of the market conditions faced by (our airline partners). While we cannot iron out the volatilities of the industry cycle, we believe that GAIN will provide helpful temporary cost relief as airlines implement the necessary measures needed to adjust to the evolving market environment."

Mr Lee added the programme provides encouraging opportunities for its partners to explore new ideas and initiatives - whether to stimulate travel demand or to boost productivity - that will help position CAG "strongly for the next wave of growth".

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Self-service check-ins, bag drops on trial at Changi Airport

Travellers departing from Changi Airport can now check in and deposit their bags with Jetstar Asia via self-service kiosks, according to Changi Airport Group (CAG).

The airport operator said in a statement on Friday (May 30) it is currently trialling a number of self-service functions – check in, bag tagging and bag drop – with Jetstar as its airline partner. The trial is ongoing and will run until August 2014, it added.

Two bag drop units and four check-in kiosks have been fitted alongside the Jetstar check-in counters in Terminal 1, and passengers on selected flights will be able to use these self-service options.

Findings from the ongoing trial will be used to assess improvements and adjustments needed for the various systems, while feedback from passengers will also be sought to finetune operations and processes to achieve better user experience, the company said.

The pilot is part of CAG's Fast and Seamless Travel at Changi (FAST@Changi) programme, as the company looks to improve productivity and operational efficiency using technology.

"The implementation of FAST@Changi is in line with a wider global push towards increasing automation at airports to improve producitivity and efficiency, while providing passengers with greater flexibility and convenience," said Mr Tan Lye Teck, Executive Vice President of Airport Management at CAG.

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Cathay Pacific to relocate to Changi Airport T4

The Hong Kong-based carrier Cathay Pacific has announced that it will relocate from Changi Airport’s Terminal 1 to the newest Terminal 4 (T4) when it opens in 2017, becoming the first airline to confirm such a move.

In a joint release today (April 30), the Changi Airport Group (CAG) and the airline said some of the key highlights for its passengers at T4 will include an enhanced travel experience with a line-up of self-service initiatives, as well as an expanded dedicated lounge of more than 800sqm for its premium passengers.

Changi Airport’s latest terminal, T4, is designed to handle 16 million passenger movements per annum and is able to support operations for both full-service and budget carriers.

With more than 130 weekly flights to and from Changi Airport, Cathay Pacific’s relocation to the new terminal will also provide it with “good room for future growth”, said the statement.

Mr Wilson Yam, General Manager, Southeast Asia, Cathay Pacific Airways, said: “As a keen adopter of technology aimed at improving passenger experience, self check-in options have always been offered by Cathay Pacific at all our stations. Changi Airport is one of Cathay Pacific’s largest bases outside Hong Kong so we are very excited at this opportunity to offer a transformational on-ground product for our valued passengers.”

CAG’s Executive Vice President of Air Hub and Development, Mr Yam Kum Weng, said the group is “delighted with Cathay Pacific’s acceptance of our invitation to relocate its operations to T4” and looks forward to a close partnership with the airline at T4 come 2017.

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Top airline partners honoured at Changi Airline Awards

Twenty-four awards were presented to the airline community across six categories at the 9th Changi Airline Awards on Tuesday evening.

The annual awards, organised by the Changi Airport Group, celebrate the partnership of airlines operating at Changi Airport and their contributions towards the growth of Singapore's air hub.

China Eastern Airlines received the Partner of the Year Award for its significant contributions to grow and strengthen services between China and Singapore.

China was the fifth largest source of passenger traffic for Changi Airport last year, with a total of 4.64 million passengers travelling between Singapore and China, a 6.4 per cent increase compared with 2012.

China Eastern Airlines is the largest Chinese carrier operating at Changi Airport in terms of passenger traffic.

The airline carried more than 650,000 passengers in 2013, and over the past five years, the number of passengers served by the airline increased at a compounded annual growth rate of more than 10 per cent.

The top five passenger carriers at Changi Airport last year were Singapore Airlines, Tigerair Singapore, SilkAir, Jetstar Asia and AirAsia Berhad.

In the cargo airlines category, Singapore Airlines Cargo continued to top the list, followed by FedEx Express, Cathay Pacific, EVA Airways and Air Hong Kong.

Speaking at the ceremony, Transport Minister Lui Tuck Yew highlighted the need for close partnership within the airport community to adapt to the evolving aviation trends.

Mr Lui said: "To be an effective partnership, we must consult, listen, and work towards win-win solutions. With this close partnership in mind, we will continue to be sensitive to the needs of airlines. In particular, we appreciate the concern that airlines have with costs. We will continue to keep a close eye on it and ensure that Changi Airport remains competitive and offers good value for money."

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SIA-Air New Zealand proposed alliance gets CCS nod

The Competition Commission of Singapore (CCS) has given the green light for the proposed strategic alliance between Singapore Airlines (SIA) and Air New Zealand to go ahead.

In a statement on Thursday, CCS said it finds that the proposed strategic alliance could raise competition concerns, but these would be offset by net economic benefits to Singapore.

Its decision followed a review of the submissions provided by the parties concerned and various stakeholders, including the Civil Aviation Authority of Singapore and Changi Airport Group.

Under the proposed tie-up announced in January, the two carriers plan to increase services between Singapore and New Zealand to tap the growing tourism traffic in the Asia Pacific and the Southwest Pacific markets.

It will allow Air New Zealand passengers to access codeshare travel on the SIA network to Europe, Africa and other parts of Southeast Asia.

In return, SIA customers can travel across Air New Zealand's domestic network and other Pacific destinations.

In response to Thursday's decision by the CCS, SIA said it is pleased that CCS has cleared the proposed alliance.

The strategic alliance remains subject to approval from New Zealand’s Minister of Transport.

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Changi Airport handled record 53.7 million passengers in 2013

Singapore Changi Airport handled a record 53.7 million passengers, and some 344, 000 landings and take-offs in 2013.

Cargo volumes, however, remained stable at 1.85 million tonnes. This is a 0.8 per cent increase from the previous year.

This year, Changi Airport Group is forecasting a five per cent increase in passenger traffic.

Passenger and aircraft traffic at Changi Airport reached record highs last year. Passenger movement was up five per cent from the year before while landings and take-offs rose by 5.9 per cent, supported by strong growth in key markets like China and India.

In the last 12 months, Changi Airport Group acquired eight new Chinese city links, making Changi the most connected South East Asian Airport to China with 31 city links.

The airport's busiest routes were to Jakarta, Bangkok, Kuala Lumpur, Hong Kong and Manila.

Indonesia continues to be Changi's top country market, with more than 7.4 million passengers passing through during the year, an 8.8 per cent increase.

And the group is working towards expanding connections in the region to boost passenger traffic.

Lim Ching Kiat, senior vice president of market development at Changi Airport Group, said: "We're actively working with airlines to see how to establish new routes to grow, as well as working with airlines to see how to grow more transfer traffic in Changi.

"The key markets that were strong this year, Southeast Asia and Northeast Asia, will continue to be our engines of growth and we continue to see strong growth in these two areas in the coming year."

Traffic to Southeast Asia and Northeast Asia, which accounts for close to 70 per cent of Changi Airport's total, rose 8.2 per cent and 7.0 per cent respectively.

Meanwhile, the group aims to improve runway capacity by up to 40 per cent over the coming years In the run-up to the airport's third runway to be opened in 2020.

Mr Lim said: "Changi Airport is working quite closely with the air traffic controllers and with the airlines to see how we can get more capacity and efficiency from the current runway operations. For example by improve the separation between flights and reducing aircraft occupancy time on the runway."

Outlook for cargo continues to be soft, as airlines face the pressure of declining yields.

To help ease costs, Changi Airport Group will offer landing fee rebates and incentives amounting to S$18 million for its next financial year ending 31 March 2015.

The group will also be focusing on certain niche markets like perishables and express cargo.

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More passengers, aircraft movements & cargo at Changi Airport in Nov

More passengers, aircraft and airfreight cargo were handled at Singapore Changi Airport in the month of November.

Changi Airport Group (CAG) said the airport handled 4.46 million passenger movements in November 2013, an increase of 2.3 per cent over the same month last year.

CAG said in the first eleven months of the year, more than 48.6 million passenger movements were registered, a 5.1 per cent increase on-year.

Air traffic movements for November grew 6.9 per cent to 29,500 flights.

For the first eleven months of the year, aircraft movements totalled 312,800, an increase of 5.8 per cent compared to a year ago.

CAG said travel demand was strongest for Indonesia, Japan and Malaysia in November.

Traffic to and from Denpasar, Kuala Lumpur and Tokyo rose by more than 10 per cent over the corresponding period last year.

Changi Airport also handled more cargo compared to a year ago.

From January and November, Changi Airport handled 1.7 million tonnes of cargo, an increase of 0.9 per cent compared to the same period in 2012.

Airfreight movements registered a 2.4 per cent growth on-year, with a total of 161,000 tonnes of cargo handled during November. 

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Takenaka Corporation wins S$985m contract to build Changi Airport T4

Changi Airport Group (CAG) has awarded a S$985-million contract to Takenaka Corporation for the construction of Changi Airport's Terminal 4 (T4).

Construction is expected to commence in the first quarter of 2014 and completed in 2017.

The contract was awarded following a tender which saw five companies submit proposals.

CAG's Chief Executive Officer Lee Seow Hiang said: "There were very competitive bids from local and international companies with vast experience in the construction of major infrastructure projects. The past few months have seen an intensive process for the CAG team, as it went through several rounds of evaluation. Takenaka Corporation delivered the best overall proposal, which included an innovative construction methodology."

Takenaka Corporation will work closely with CAG and the appointed design consortium to refine the design of T4 before construction.

Construction work will include the development of a new passenger terminal building, with a planned capacity of 16 million passenger movements per year.

It will also involve the construction of a multi-storey car park, an open-air car park with up to 1,500 parking spaces, and a two-storey holding area for taxis to pick up arriving passengers.

Construction work also includes the development of a bridge enabling buses and other airside vehicles to move from T4 to remote aircraft stands being built at a land plot south of Terminal 3.

A 68-metre high Ramp Control Tower will also be built to oversee and manage aircraft movements around T4.

The contract also involves road improvement works, including a new road to funnel outgoing traffic directly from T4 onto East Coast Parkway.

Takenaka Corporation had previously been involved in the upgrading of Changi Airport's Terminal 2 in 2006, and the upgrading of Terminal 1 in 2012.

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Changi Airport Group, CapitaMalls Asia to jointly develop Project Jewel

Changi Airport Group (CAG) and CapitaMalls Asia (CMA) will be developing the mixed-use development codenamed Project Jewel at Changi Airport.

CAG and CMA said in a joint statement that their wholly-owned subsidiaries, Jewel Changi Airport Holding and CMA Singapore Investments, signed a joint venture agreement on Friday to develop the project.

The development will offer a range of facilities for airport operations, retail offerings and leisure attractions.

Project Jewel is also expected to capture greater tourism and strengthen Changi Airport's appeal as an air hub.

The development cost of the project is expected to be about S$1.47 billion, including land cost.

Project Jewel will be built on the surface car park site fronting Changi Airport Terminal 1, which measures about 3.5 hectares (or 377,000 square feet).

It will have a dome-shaped facade made of glass and steel, which will be an iconic landmark in Changi Airport's landscape.

The complex will have five storeys above ground and five basement storeys.

It will have a total gross floor area of about 134,000 square metres (sqm).

This will comprise about 17,000 sqm of facilities for airport operations, 22,000 sqm of attractions, 5,000 sqm of hotel space and 90,000 sqm of retail space.

The net lettable area of the retail space, which is located from Basement 2 to Level 5, is about 53,500 sqm.

Among the attractions at Project Jewel include a large-scale, lush indoor garden with a central waterfall of about 40 metres in height.

Construction for the project is scheduled to begin in the second half of 2014, and the development is targeted to open by the end of 2018.

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Changi Airport's T4 to be used as test-bed for new concepts

Transport Minister Lui Tuck Yew has said Changi Airport's Terminal 4 (T4) will be used as a test-bed for new concepts that can be deployed in the future Terminal 5.

Speaking at the groundbreaking ceremony of T4 on Tuesday, Mr Lui said concepts such as innovative terminal design and the use of technology will raise productivity levels and economise the use of space.

As part of enhancements to both productivity and the passenger experience, travellers will see the introduction of more self-service options at T4.

These include self-service check-in, automated immigration clearance and automated boarding at the departure gates.

Mr Lui said: "We should envisage a large number of passengers being able to get easily and efficiently from check-in to the airplane, without having to queue for service or checks by service personnel, but always having someone readily at hand to assist if necessary."

Various government agencies, Changi Airport Group (CAG) and other airport stakeholders have been working in close partnership on this new paradigm of self-service and automation.

The Changi Airport Group is confident that over time, passengers will get used to these new processes.

Poh Li San, vice president of airport operations at Changi Airport Group, said: "In the next few years, we will be running trials in our existing terminals -- gradually starting self-service options as well, but in T4 we will be rolling them out in a big way.

"So we will be expecting roughly 30 to 50 per cent, at least for the beginning for passengers to use self-service options (in Terminal 4).

"Then over time when passengers get more used to it and the technology become more prevalent, we can have a greater growth (or) take-up rate, perhaps even 70 to 80 per cent in the longer run."

Mr Lui also outlined several other challenges facing T4.

He said T4 must be integrated with the rest of Changi Airport, and passengers must find it a seamless experience to get to and from the other terminals.

CAG had considered the option of using a skytrain.

"However, because of the distance and also in between there are some existing infrastructure and services, it will become quite an engineering challenge, as well as the high cost to either dig underground or alleviate above ground," Ms Poh said.

"We have weighed the options between a skytrain and shuttle bus and we concluded that the shuttle bus is a much better, effective means of transport to connect Terminal 4 and other terminals."

In addition, T4 has to overcome the constraints of space.

Mr Lui noted the physical land space is limited and locked in by existing roadway and apron boundaries.

So to maximise the limited land parcel, the layout of functional spaces in the terminal has been carefully planned in order to minimise dead spaces. The outcome is a double-storey, compact terminal design.

Mr Lui also said it is important to continue expanding Changi Airport's infrastructure and facilities ahead of time.

He said: "Airports require sufficient capacity to attract new airlines, add new city-links and increase frequencies.

"Without this, airlines would turn to other airports that can better facilitate their growth, and Changi would risk losing connectivity, and consequently, its mantle of being Asia's premier hub."
When completed in 2017, Terminal 4 will primarily serve airlines operating narrow-body aircraft and which require a quick turnaround of their flights.

Terminal 4, together with Project Jewel, the additional third runway and the mega Terminal 5, will strengthen Changi Airport's position as a leading air hub in Asia.

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Seletar’s high fuel costs leave private jet owners fuming

The owners of private jets flying out of Seletar Airport may be super-rich but many are peeved by the comparatively high price of aviation fuel there.

While jet fuel at Changi Airport currently costs US$3.17 (S$3.96) a United States gallon, at Seletar the price is at least US$4.61.

At Senai Airport in Johor, Seletar’s main and closest competitor for the private jet market, the price is US$3.37 a gallon. Furthermore, there is a surcharge at Seletar for refuelling between 10pm and 6am.

With fuel capacity of private jets ranging between 1,000 and 6,000 gallons, filling up at Seletar’s pumps could cost up to US$7,440 more than at its Malaysian rival.

The difference in price has become an issue for those based at Seletar, with a group of private jet operators writing to complain to the Changi Airport Group (CAG), which owns and manages the airport.

According to the letter, which was seen by TODAY, the operators noted that ensuring cost competitiveness in aviation fuel would go a long way towards strengthening the status of Seletar Airport as the premier business aviation hub in the region.

One of the operators, who wished to remain anonymous, told TODAY that the issue is a major concern for those who prefer to avoid the hassle of commercial flights: “They may be able to afford the higher price but, as you know, the rich get richer counting their pennies and they never like being taken for a ride.” He added that Seletar could probably attract more of the region’s super-rich to base their planes here if it was more competitive.

The letter emphasised that point by highlighting that there are competing hubs in the region.

One operator — Executive Jet Asia, which was founded by Singaporeans Prithpal Singh and David Ho — has moved most of its operations to Senai, investing RM40 million (S$16.2 million) in runway facilities to try to lure business jets there with much cheaper rates. And while Senai provides for instrument landing, Seletar has yet to install such facilities, which means in very bad weather, planes have to divert to Changi or Senai.

In response to the letter, Seletar’s General Manager Lim Ching Kiat wrote back to the operators: “We would like to inform you that the Changi Airport Group, with support from CAAS (Civil Aviation Authority of Singapore), EDB (Economic Development Board) and JTC (Jurong Town Corporation), is currently embarking on a review of the fuel licensing and operating model at Selatar Airport, with the objective of improving cost competitiveness and service level.”

Mr Lim explained that the jet fuel supply chains for Changi and Seletar are “distinct and separate”. At Changi, fuel is brought by barge and piped directly to a storage facility at the airport, whereas at Seletar, it is brought in by fuel trucks from Shell’s terminal at Pandan Road.

In addition, economies of scale may be an issue, according to Mr Lim. “The fuel uplift volume at Seletar is significantly lower than at Changi — which could be one of the reasons why fuel prices are higher at Seletar,” he said.

The review of Seletar’s fuel price comes at a time when the Asian private jet sector is poised to soar to even greater heights.

Currently, there are only about half a dozen Singaporeans with private jets, including businessman and hotelier Ong Beng Seng, Ezra Holdings founder Lee Kian Soo, and former remisier Peter Lim. There are also another dozen or so owners from the region who base their jets here.

But that could change rapidly. According to manufacturer Bombardier, Asia-Pacific is expected to be one of the fastest-growing markets for business jets in the run-up to 2030, with sales forecast at 1,145 planes. And Asians may own as much as 20 per cent of the global luxury jet fleet by 2017 as economic growth spawns new millionaires across the region, Jetsolution International Services said at the beginning of the year.

A CAG spokesman said the results of the Seletar review would be made public next month.

SOURCE

Quite an astonishing figure to know about the fuel cost at Seletar Airport in Singapore. These businessmen jet owners are rich, but they ain't stupid. After increasing the parking fees by ten times in 2012 and now this, it seems that Seletar is the place to avoid. CAG will better do something quick before jeopardizing Singapore's masterplan of being an aviation hub in the region.