Changi Airport T2 to suspend operations
18-month suspension from May 1 to save on running costs, says Transport Minister
Operations at Changi Airport Terminal 2 will be suspended for 18 months from May 1 to save on running costs, Transport Minister Khaw Boon Wan said yesterday.
Changi Airport Group (CAG) said it decided to do so in view of "the steep decline in passenger traffic and the likelihood that air travel demand will not return to pre-Covid-19 levels in the near term".
The suspension will allow CAG and its partners to save on costs in utilities and cleaning, and optimise resources across its terminals to better match the low demand and airlines' flight operations, it added.
CAG added that it has significantly scaled down its operations at Terminal 4, due to the very small number of flights there. It will consider suspending operations at T4 should the remaining airlines choose to suspend or adjust their flight schedule.
With the suspension of T2 operations, airlines will be re-allocated across the remaining terminals.
Singapore Airlines (SIA) will consolidate its operations in Terminal 3, Mr Khaw told Parliament.
"Importantly, it also allows us to speed up the current upgrading works at T2 and shorten the project time by up to one year," he said. The ongoing T2 expansion works were scheduled to be completed in 2024.
Mr Khaw also announced that the Government will waive the Airport Development Levy until end- March next year. Currently, passengers beginning their trips from Changi Airport pay $10.80, while passengers transiting through it pay $3.
Mr Khaw told the House the Government is mindful that global connectivity is of fundamental importance to Singapore. He said the air hub at Changi - anchored by SIA - is crucial to Singapore's role as a business, manufacturing and research and development hub. Like Changi, SIA has been hit hard by the Covid-19 outbreak, and has cut 96 per cent of its flights till the end of this month. "If it were to collapse, it will undermine our ability to recover from the crisis. Many Singaporeans depend on Changi Airport for a living," Mr Khaw noted.
This is why the Government has moved to support Changi to prevent loss of strategic capabilities and protect its hard-earned position, he said.
Unlike other countries, Singapore has kept its sea port open throughout the coronavirus outbreak and is committed to keeping it open, he noted.
"We had put in place precautionary measures to ensure a safe working environment for staff and crew. With this, our port continues to service the world and safeguard our essential supplies," he added.
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