A recent report by The Centre for Aviation indicates that AirAsia has signed up to be the anchor tenant for Singapore’s Changi Airport T4, their new hybrid terminal due to open in 2017. In a move that is expected to significantly reduce operating costs, AirAsia would have the a number of new opportunities to grow their Singapore presence from the new terminal.
Despite steady growth in Singapore between 2008 and 2013 helped by the opening up of the lucrative Kuala Lumpur Singapore route, AirAsia faced challenges during 2014 in a generally difficult market. Therefore, lower operating costs, resulting from the automation of passenger services like self-bag drop and common check-in kiosks, combined with incentive packages offered by the new terminal should help AirAsia further enlarge its traffic share on the 18 existing routes from Singapore.
The move from the LCCT to KLIA2 in Kuala Lumpur in May 2014 gave AirAsia the opportunity to set up a Fly-Thru Hub in KLIA2 which offers greatly expanded facilities from the former LCCT. The new Terminal 4 at Changi also has the potential to become another AirAsia Fly-Thru Hub and we will monitor developments in this area.
Along with AirAsia, other airlines which have indicated they will move to the new terminal, now 70% complete, include Cathay Pacific, Korean Air and Vietnam Airlines.
See our earlier story HERE.
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