CHANGI Airport will get a new owner - Temasek Holdings - from July next year when the Civil Aviation Authority of Singapore (CAAS) is transformed from a government to corporate entity.

Temasek will set up a yet-to-be named company to run the show; while the CAAS will be restructured to become the regulatory authority, overseeing air traffic services and licensing of airlines, aircraft and pilots.

The regulator will cap the maximum revenue that the operator is allowed to make per passenger to ensure that passenger and airline charges do not spiral out of control in the quest for profits.

It will also take on another role that most airport operators elsewhere eschew: set service standards.

Failure to meet standards will result in penalties for the operator, much as in the case for the Public Transport Council and bus and train operators.

This will address some concerns that have been expressed since Transport Minister Raymond Lim announced the decision to corporatise Changi Airport in August last year: that standards will slip with an operator focused on the bottomline.

On Tuesday, at an airport function, he reiterated that the government was mindful of the risks of corporatisation and the need to maintain the service the airport is famous for.

'To continue providing travellers with the Changi experience - one that is efficient, hassle-free, welcoming and fun, the new regulator will regulate service standards and work with the airport company to ensure that standards remain high.'

Another concern: that an operator will squeeze the utmost from what it already runs and will have no incentive to invest in future expansion, like building a new terminal.

The model that Singapore has come up with will circumvent this, said Senior Minister of State for Transport Lim Hwee Hua at a media briefing.

While the roles will be split between operator and regulator, both will be jointly responsible for airport master-planning.

She said: 'There will be triggers set in place so that we are able to build capacity ahead of time.'

Read the full story in Wednesday's edition of The Straits Times.