Changi Airport Group (CAG) is to consolidate terminal operations at Singapore Changi International Airport from 1 May 2020 following the steep decline in passenger traffic due to the Covid-19 pandemic.

Terminal 2 operations will be suspended for 18 months and airlines will be relocated to the remaining terminals. Further details on the relocation of airlines will be revealed in the coming weeks.

The decision to consolidate terminal operations was made on the assumption air travel demand would not return to pre-Covid-19 levels any time soon.

In February, for example, the airport handled 3.45 million passenger movements, a decrease of 32.8% compared to the same period the previous year. Aircraft movements also declined by 12.3% to 26,200 landings and take-offs.

The consolidation will enable CAG, the headline sponsor of the 2020 Travel Retail Awards and its airport partners to save on running costs such as utilities and cleaning. It will also allow the company to optimise resources across the airport’s terminals to better match the low travel demand and airlines’ flight operations.

TERMINAL TWO EXPANSION PLAN

According to CAG, the suspension of operations will enable the acceleration of expansion work in Terminal 2. Completion is currently scheduled for 2024, but this could be brought forward by up to one year.

The expansion project will add 15,500sq m to the terminal building and increase airport capacity by five million passengers per annum (mppa) to 90 million mppa.

Additional retail and F&B outlets will be introduced in the public and transit areas, providing passengers and visitors wider and refreshed options. CAG is currently in discussion with airport partners and concessionaires in T2 regarding various options.

As reported, food and beverage and service concessionaires across the entire airport are receiving rental assistance, following a budget announcement by Singapore’s Minister of Finance on Tuesday (18 February).

In a statement issued today (6 March) which was seen by TRBusiness, CAG said: “The stores and restaurants at Changi Airport have been significantly impacted by the reduced air passenger traffic and weakened consumer demand.

“CAG has been in discussion with the concessionaires on assistance measures based on their business circumstance. As a result, all rentals for T4 concessionaires, for example, have been waived for two months from 24 March 2020. This is due to the very low passenger traffic in the terminal.”

OPERATIONS REDUCED IN TERMINAL 4

Terminal 4 operations have been scaled down significantly with just a small number of boarding gates still in use. Shops have been granted permission to close early following the final flight of the day.

Should the remaining airlines in T4 suspend or adjust flight schedules, CAG will consider a temporary suspension of the terminal’s operations until airlines confirm the resumption of operations.

In the meantime, CAG and its partners are identifying retraining and redeployment opportunities for airport staff to protect as many as jobs as possible during the downturn. Ground retailer SATS, for example, is sending staff on training courses, which will enable them to serve as airside drivers to support airlines.

Tan Lye Teck, Executive Vice President of Airport Management, Changi Airport Group said: “With airlines suspending flights in response to the sharply reduced travel demand, the consolidation efforts seek to help our airport partners during this difficult time.

“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 stand ready to ramp up operations quickly once the recovery takes place.”