Changi Airport suspends operations at T2 for 18 months

SINGAPORE'S Changi Airport will suspend operations at Terminal 2 for 18 months amid the deepening coronavirus crisis that has brought the global travel industry to a grinding halt, Transport Minister Khaw Boon Wan said on Monday.

The suspension begins on May 1, with airlines there to be relocated to the airport's remaining terminals. Singapore Airlines will consolidate its operations in T3.

"We will save on running costs for the airport operator, retail tenants, airlines and ground handlers. Importantly, it also allows us to speed up the current upgrading works at T2 and shorten the project time by up to one year," Mr Khaw told Parliament shortly after the government's third economic relief package was unveiled.

T2's expansion was initially scheduled to be completed by 2024.

At the same time, the government will waive the Airport Development Levy until the end of March 2021, he said.

Currently, passengers beginning their trips from Changi Airport pay a rate of S$10.80; passengers starting their trips elsewhere and connecting through Changi Airport pay a rate of S$3.00.

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The minister said in managing the current crisis, the government is mindful that global connectivity is of fundamental importance to Singapore's role as a business, manufacturing and innovation hub, and many Singaporeans depend on Changi Airport for a living.

This is why swift action was taken to support the air hub, to prevent the loss of strategic capabilities and the Republic's hard-earned position as a reliable air hub, he said.

A statement from Changi Airport Group (CAG) said the decision to consolidate operations was made in view of the steep decline in passenger traffic and the likelihood that the demand for air travel will not return to pre-Covid-19 levels in the near term.

Meanwhile, operations at T4 have also been scaled down "considerably", CAG said, in view of the very small number of flights there.

The group said CAG will consider temporarily suspending operations at T4 if the remaining airlines suspend their flights, but with the objective of restarting operations quickly when airlines confirm the resumption of flights.

Tan Lye Teck, CAG's executive vice-president of airport management, said: "While the scale of our operations will be reduced in the near term, Changi Airport remains open to serve the airfreight and passenger flights that continue to operate.

"Even as our airport capacity is being optimised for the current situation, we will have the flexibility and we stand ready to ramp up operations quickly once the recovery takes place.