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SINGAPORE : Minister of State for Transport Lim Hwee Hua told Parliament on Thursday that Singapore will have a Terminal 4 at Changi Airport.
The news comes just two months after Singapore opened the S$1.75 billion Terminal 3 in January.
Meanwhile, the Budget Terminal will undergo a S$10 million expansion to increase its handling capacity.
Changi Airport's Terminal 3 got off to a flying start, serving 838 flights and 232,000 passengers in the first week of operations, after it opened on January 9.
There had been talk that a fourth terminal will be added next to the airport's proposed third runway, currently used by air force jets.
While no details were given, the Transport Ministry on Thursday confirmed that Singapore will have a Terminal 4.
Mrs Lim said, "To continue to ensure that we have sufficient capacity to accommodate growth in the aviation market, the master planning for Terminal 4 has started. In the near term, the focus will be on the expansion of the Budget Terminal and the upgrading of Terminal 1."
The Budget Terminal, which handled 2.9 million passengers since it opened in March 2006, will be expanded at a cost of S$10 million.
A total of nine low-cost carriers will operate out of it this year, including AirAsia which began plying the Singapore-Kuala Lumpur route from February 1.
These budget airlines have contributed 3.6 million or around 10 percent of Changi's passenger traffic. The number of weekly schedule flights has also climbed from 124 in March 2006 to 248 last month.
Mrs Lim said, "We will be expanding the Budget Terminal from its current capacity of 2.7 million passengers per annum to 7 million passengers per annum at an estimated cost of S$10 million. We target to commence construction in July this year and to complete the expansion by early 2009."
Today, the Budget Terminal is connected to 20 cities in the region, up from 12 cities in 2006.
The Civil Aviation Authority of Singapore said the expansion is timely as passenger traffic is expected to grow with ASEAN's goal to remove restrictions on passenger flights between ASEAN capitals by December this year.
The expansion will include another seven check-in counters, three more boarding gates and new baggage handling equipment. The kerbside at the arrival hall will be widened to create more room for arriving passengers waiting for vehicles to pick them up.
The expansion of the Budget Terminal will increase its floor area from 25,000 square metres to 28,700 square metres.
In all, Changi Airport handled 36.7 million passengers last year. But even as the growth of Changi as an air hub remains healthy, Mrs Lim said it faces stiff competition from Kuala Lumpur, Bangkok, Hong Kong and even Dubai.
She said, "Dubai International Airport, the largest aviation hub of the Middle East, is expected to overtake Changi's passenger traffic volume this year, crossing the 40 million passenger mark. Dubai is a formidable competitor for the Australia-Europe traffic. It is seeing phenomenal growth in passenger volume, with an almost 20 percent increase last year."
Thus, there will be more efforts to strengthen Singapore's status as an air hub. This includes pushing for air liberalisation and getting more airlines to fly to the city state. - CNA/ms
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