SINGAPORE. Singapore’s Transport Minister Yeo Cheow Tong visited Changi airport this week to hear a briefing on the progress of the current expansion, due to be completed in 2005. The airport’s terminal 2 is undergoing an S$240 million (US$139 million) facelift to boost its position as a leading hub airport.
Yeo Cheow Tong also announced a new US$40 million Growth Incentive Scheme (GIS) for airlines during his tour. Announcing the scheme, which takes effect from 1 January 2004 to 31 December 2005, the Minster said airlines will enjoy financial benefits according to the traffic growth they manage to achieve at Changi.
Changi airport’s T2, which is nearly 15 years old, is seeing massive improvements to its design, with a new 2,800sq m (30,128sq ft) area added to the departures/transit area for retail, food & beverage, landscape and seating facilities.
Among the T2 retail changes already revealed, Nuance-Watson (Singapore) officially opened its relocated and enlarged fragrances and cosmetics store last week (The Moodie Report, 22 October 2003). Nuance-Watson gained the new anchor location in the centre of the terminal opposite the T2 duty free liquor and tobacco shop during the round of tenders held this summer. The result doubled the space allocated to its previous T2 beauty store to more than 600sq m (6,460sq ft).
Dunhill and other luxury brands will reopen refurbished stores from December 2003 onwards. DFS Group has moved three brands-Hermès, Prada and Gucci-into the 300sq m (3,230sq ft) previously occupied by the Nuance beauty store in T2. DFS also has big plans for its liquor and tobacco operation.
Under the growth plan, if an airline’s 2004 passenger traffic exceeds that in 2003, it will receive incentives for the incremental passenger traffic. For 2005, the airlines will similarly receive incentives if they show positive results over the previous years.
“We recognise the importance our airline partners play in contributing to the growth of our position as an international aviation hub. The Growth Incentive Scheme is a win-win formula for Changi airport and our airline partners to grow our businesses together. This scheme comes at an opportune time as it will allow the airlines to ride on the momentum provided by the strong post-SARS traffic recovery,” said Yeo.
From 1 January 2004, the GIS will replace the SARS relief package, which was introduced on 1 May 2003. Apart from the GIS, airlines will also continue to benefit from the Air Hub Development Fund (AHDF), which was established on 1 January 2003 and will end on 31 December 2005.
