Singapore's Changi Airport to change hands

10 Oct 2008

Singapore's Changi Airport will change hands, to the Singapore government-controlled Temasek Holdings in July next year. 

That is when the Civil Aviation Authority of Singapore (CAAS) will be transformed from a government to a corporate entity. Temasek will incorporate a company to run the operations, simultaneous to the restructuring of CAAS as a regulatory authority overseeing air traffic services and the licensing of airlines, aircraft and pilots.

In its role as the regulator, it will cap the maximum revenue an operator is allowed to make per passenger, with a view to make sure that passenger and airline charges do not become excessive. It will also establish service standards, and penalise operators in case they are not met. 

The Singapore government says that the idea of transferring ownership of the Changi airport to Temasek is to have a clearer separation of the role of the policymaker, regulator and the operators. Changi is amongst the top 10 most profitable airports globally.