Why Changi Airport hiked its passenger service charge by 43%

Raising its PSC to S$19.90 from S$13.90 will help fund the airport group's ambitious terminal expansions and cover rising operating costs.

The new PSC will apply to all air tickets purchased from 1 November 2012 for travel on or after 1 April 2013. 

"The PSC revision will help to fund new investments required to cater to growing passenger traffic and partially cover Changi Airport’s aeronautical operating costs which have increased," CAG said in a release.

"Over the next five years, CAG is committed to a more than S$2 billion expansion and enhancement programme at Changi Airport to sufficiently cater for capacity growth, preserve and improve service levels for airport users through end-of-life replacements and operational efficiency improvements," its said.

"Two imminent development projects – the development of the new Terminal 4 and the expansion of Terminal 1 – will raise handling capacity at Changi Airport by about 30% from 66 million to 85 million passengers per annum. With Changi Airport expected to serve an additional 10 million passengers per annum within the next five years, timely investment in terminal capacity is crucial in ensuring that Changi upholds its high levels of safety and security as well as continue to provide a world class airport experience to its passengers," it added.

"At the same time, there will be significant investment in airside infrastructure over the next few years including new parking stands and taxiways throughout the airport, as well asresurfaced runways and taxiways. To maintain efficiency and safety, there will also be end-of-life replacement of high tension cables, refurbishment of existing lifts, travellators and escalators, replacement of the Flight Information Display System in Terminal 3 and replacement of fire-protection systems and fire-fighting equipment," it said further.

The Passenger Security Service Charge (PSSC) of S$8.00 remains unchanged. Including the Aviation Levy of S$6.10, collected by the Civil Aviation Authority of Singapore (CAAS), departing passengers will pay a total of S$34.00. The PSC and PSSC for transfer and transit passengers, of S$9.00 and S$3.00respectively, also remain unchanged.