Jetstar rejects airport's 'unilateral' decision to move it to Terminal 4

Australian low-cost carrier Jetstar yesterday rejected Changi Airport's decision to relocate its flights to Terminal 4, saying the decision was taken "unilaterally" and in bad faith, before any agreement had been reached.

In response, Changi Airport Group (CAG) said Jetstar's relocation was the "only option" that would allow the airport to optimally use its aircraft gates, even as it promised that "special provisions" would be made to cater to the needs of Jetstar's passengers as much as possible.

CAG yesterday announced that 16 airlines, including Jetstar, would be relocating to T4 when it reopens on Sept 13 to cater to rising passenger numbers. Jetstar is slated to move on Oct 25.

This was followed 11/2 hours later by a Jetstar statement that expressed the airline's extreme disappointment, saying its concerns were ignored.

"Until an agreement is reached, we have no intention of moving and have informed CAG of that fact," the airline said. "A joint study was only agreed to be undertaken last week and this announcement completely disregards that agreement and the impact a move would have on our customers, our people, and our operations."

Observers said Jetstar's unhappiness stems from its high reliance on connections with other foreign airlines. Its current terminal - T1 - offers better connectivity to the other terminals than T4, which is located farther away.

Jetstar, a wholly owned subsidiary of Australian airline Qantas, connects to many cities in South-east Asia, as well as international flights operated by airlines such as Emirates, Japan Airlines, Qatar Airways and Qantas.

CAG noted its engagement with Jetstar about the move to T4 was not recent, and had begun in 2019 before the Covid-19 pandemic, when Changi was experiencing tight capacity during peak hours.

CAG said it has studied various scenarios of airline allocation across its four terminals and that the best solution was to move Jetstar to T4, to support its growth and that of other airlines at Changi.

It said it is experiencing tight capacity during peak hours - like other airports in Asia - and urgent moves must be made to meet expected traffic demands by end-October, a traditionally busy season due to the northern winter.

"With 17 gates to support narrow-body aircraft, T4 is a very good fit for Jetstar, which currently operates predominately narrow-bodied aircraft," CAG said, adding that Jetstar could reap productivity gains and save costs over time with the high degree of automation at T4.

CAG said it has accepted Jetstar's suggestion to form a joint task force to ensure a smooth transition for the airline.

Mr Mayur Patel, head of Asia at OAG Aviation, noted that the gates at T1 are getting increasingly congested as flights increase post-pandemic. But he was surprised CAG announced the Jetstar move before the consultation was completed.

T4 is usually used for flights involving no transfers - typically regional or point-to-point flights, he said.

Mr Brendan Sobie of Sobie Aviation said the move would be significant from a local consumer perspective because Jetstar includes Jetstar Asia, which is the only local airline that is not part of the Singapore Airlines (SIA) Group, accounting for 6 per cent of Changi Airport's traffic before the pandemic.

Its business model relies heavily on connections with other airlines, and a move to T4 would make it harder for Jetstar Asia to recover to its pre-Covid-19 level, he noted. In 2019, Jetstar Asia flew 4.5 million passengers and operated 18 aircraft. It now operates seven.

"Jetstar Asia feeds not only Qantas but also many other foreign airlines, most of which are not partnered with SIA, and therefore rely on Jetstar Asia," said Mr Sobie.