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by February 28, 2018 General

SINGAPORE, A new Airport Development Levy (ADL) will be introduced for passengers departing from Singapore Changi Airport starting July 1, 2018.

The ADL rates will be S$10.80 (S$1=RM2.96) for passengers who begin their trips from Changi Airport and S$3.00 for passengers connecting through Changi Airport, the Ministry of Transport and Civil Aviation Authority of Singapore (CAAS) said in a statement here today.

It said the ADL would help fund airport developments, including the new Terminal 5 and related infrastructure at Changi East.

Legislative changes would be made to put the new tax into effect, which would apply to tickets issued on or after July 1, 2018, it said.

However, it said, passengers travelling on or after July 1 whose tickets were issued prior to the date would not be subjected to the ADL.

The ADL will be reflected on airline tickets as part of the total ticket price, which would be collected by the Changi Airport Group (CAG) on behalf of the CAAS and the Singapore Government.

The revenue from the ADL will be channelled directly into the Changi Airport Development Fund and does not form part of CAG’s or CAAS’s revenue stream, it said.

The ministry said the airport’s expansion would allow it to handle higher volumes of passengers and aircraft movements safely and efficiently, and enhance Singapore’s connectivity by offering additional destinations and options for Singapore residents.

It would also ensure that Changi Airport remained a preferred global air cargo hub for freighters and transhipment operators, it said.

Meanwhile, it said, the new Changi East project, which included the construction of Terminal 5, would enable Singapore to accommodate future growth in air traffic, and capitalise on the benefits of air connectivity.

The project includes a three-runway system, where an existing military runway is extended and accompanying taxiways are being constructed to allow for Changi Airport to cater to more flights.

The third runway will be ready in 2020, and the three-runway system would begin operating in the early 2020s, it said.

The ministry said Terminal 5 would increase Changi Airport’s capacity by 60 per cent and allow it to serve up to an additional 50 million passengers per annum during its initial phase, it said.

It said the Changi East project was expected to cost tens of billions of dollars, funded through joint contributions from the government, CAG and airport users.

To-date, the Singapore Government and CAG had committed over S$9 billion and S$3.6 billion into the project respectively, and CAG would commit its reserves, future surpluses and earnings from its airport concessions, as well as take on substantial borrowings, to fund the project, it said.

Source: NAM News Network