Why should I pay the Airport Development Levy?

When Changi Terminal 5 was unveiled at the National Day Rally in 2013, we were all stoked. More so when the beautiful visuals of Project Jewel were released.

Uh oh. We forgot that this comes at a price. Who would fund these expansions? Surely not…not us?!

The Ministry of Transport (MOT) and the Civil Aviation Authority of Singapore (CAAS) announced on 28 February 2018 a new Airport Development Levy to fund the Changi Airport expansion project, or Changi East. In this post, we bring you the 5 frequently asked questions on this levy.

1.     How much is the levy?

If you are flying out of Changi Airport, you will have to pay up to S$10.80 more due to the new levy, as well as changes in passenger fees.


Source: Channel NewsAsia

2.     There’s no guarantee I’ll use the facilities. Why must I pay for it?

The fact is that such expansions entail a huge upfront investment. Our government currently employs a three-way model – made up of the government, Changi Airport Group (CAG), as well airport users, like you and I. The good thing about this model is that it prevents a large spike in charges to future airport users. Apparently, this isn’t a new concept. Airports in Hong Kong, Dubai and Qatar adopt similar models.

3.     Fine. But who paid for the previous terminals?

Surprise, surprise! We have been paying for airport upgrades and expansions. The expansion of Terminal 1 and the construction of Terminal 4 for instance, were fully funded by fees collected, such as the Passenger Service and Security Fee that were paid by airport users.

4.     Why can’t the Government pay for this project, since it has so much money?

In general, airport users should bear their share for the use of airport facilities. In fact, airport users are paying the smallest share. The Government will pay the majority of the costs, while CAG will contribute the next largest share. Airport users’ contributions is the smallest share of the joint contribution model.

5. Exactly, so costs should be borne by the Government and CAG!

Actually, if you think about it, it isn’t a good idea. If airport users are not to be charged, then the government would have to pay more. Don’t forget that the government’s money is our money – taxpayers’ money!

Now you know – the levy isn’t too bad after all. With everyone’s contributions, we’ll be able to enjoy a brand new Changi!

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Voilà! Good news from #Cannes, France, where the prestigious @mapicworld Awards 2016 was held last night – Jewel Changi Airport, jointly developed by @changiairport Group and #CapitaLand, has been crowned Best Futura Shopping Centre!👏 Designed by world renowned architect #MosheSafdie, Jewel combines beautiful gardens with a vibrant marketplace housed within a distinctive glass-and-steel dome. 🎉Strategically located in Singapore’s Changi Airport, the world’s sixth busiest #airport for international traffic, it will provide an excellent platform for leading global retail and lifestyle brands to showcase their best offerings to the world. We can’t wait to welcome you to #Jewel when it opens in early 2019. Meanwhile, here’s a sneak peek into the future! 😄

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