Terminal 3 At Changi Airport Lures Tenants

The new T3 terminal at Singapore Changi Airport has finally completed its renovations. The rumor was that it was originally built to house budget airline plyers.

However, budget airlines have very much been shouldered out of business by the big boys like SIA who reacted by offering promotions and deals during off peak season that were only slightly more expensive than their no frills competitors. These budget airlines did not have a chance to take off (pun not intended) before their business model caved in.

As a result, T3 at Changi Airport is now sorely in need of tenants after having cost CAAS $1.75 billion dollars to build. Standing at 7 storeys high, it is capable of catering to 22 million passengers a year. SIA is its only confirmed tenant, who are moving 50% of their operations to T3 consisting of long haul flights to United States, Europe, Japan, Australia and New Zealand.

With 67 airlines based at T1, and 12 airlines (including SIA) at T2, CAAS is now attempting to lure airlines over from these terminals over to T3, the carrot being a 6 month free rental caveat, premium lounge and unique check in systems. While these terms were attractive enough to set Cathay Pacific, Qatar Airways, Korean Air, Southern China Airlines, Thai Airways and United Airlines thinking, other airlines like Emirates have no plans to move as they had made considerable investments by opening multi-million dollar Emirates lounges in October last year. Plus that the rental rates for T3, when it kicks in, is 10 percent higher than rental rates at T1 and T2. In addition, relocation costs may outweigh the rental relief given.

So if you're a frequent flyer of any of the 6 airlines considering CAAS' T3 offer, do check if you will still be flying in at the old Terminals or to the spanking new T3. You might want to check out the "unique check in system" that CAAS has promised...