IATA Objects to Passengers Pre-Funding Singapore Changi's New T5

Alexandre de Juniac Photographer: Ore Huiying/Bloomberg

The airline industry’s most prominent trade body said it objects to any attempts by Singapore to charge travelers to help fund the construction of its new Terminal 5 in Changi Airport.

The International Air Transport Association is “strongly against any pre-financing of any infrastructure,” IATA Chief Executive Officer Alexandre de Juniac told a media roundtable as part of the Singapore Airshow Monday. “We shouldn’t pay first without having the infrastructure ready to be operated and used by airlines and by the users.”

Passengers flying out of Changi Airport may have to pay $10 to $15 extra as part of a new tax being considered to help pay for the hub’s expansion, including the building of T5, the Straits Times newspaper reported last month. Charges for airlines, including parking and landing fees, are expected to rise by about 30 percent, according to the report.

Changi is one of the key hubs for international flights in Asia.

IATA’s de Juniac also said:

  • Low-cost carriers need traffic growth of 6 percent to 9 percent to fill aircraft to be delivered in the next five to seven years
  • Air cargo traffic is forecast to rise 4.5 percent this year compared with 9 percent gain in 2017; slower inventory increase will lead to smaller but solid growth for air cargo
  • China needs more airspace for civil aviation, and to modernize its air-traffic control system for long-term traffic growth
  • China’s M503 route for flights between the mainland and Taiwan is safe and efficient
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