As Mr Syu has pointed out, budget carriers have grown very fast in recent years. This is why the Civil Aviation Authority of Singapore (CAAS) opened the Budget Terminal at Changi Airport in 2006. Designed to facilitate the operating models of budget carriers, the Budget Terminal complements the main terminals to enable passengers at Changi to choose from a wider selection of flights to more destinations at different fares. The Budget Terminal can be expanded to accommodate more flights by budget carriers.

To remain a leading air hub, Changi's main terminals must have sufficient capacity to cater to the growth of existing as well as new carriers. Terminal 3 was built to serve Changi's long-term needs. With Terminal 3 onboard, Changi Airport is now capable of handling about 70 million passengers per annum.

Aside from office rental which is slightly higher at Terminal 3, airlines operating at Terminals 1, 2 and 3 pay the same rates for landing, parking, aerobridge usage and check-in counter usage. Overall, the charges at Changi Airport are among the lowest in the region.

Terminals 1, 2 and 3 at Changi are all fitted out to handle the A380 aircraft. SIA is expanding across to Terminal 3 because the carrier needs the capacity of both Terminals 2 and 3 for its future growth, and not because it has to operate its A380 aircraft at Terminal 3. Besides SIA, four other airlines - China Eastern Airlines, Jet Airways, Qatar Airways and United Airlines - will operate at Terminal 3 from March.

CAAS is mindful not to take Changi Airport's position for granted and we will continue in our efforts to make Changi an attractive and competitive airport for carriers and travellers.

Tan Lye Teck
Deputy Director-General
Civil Aviation Authority of Singapore