Changi Airport will get a new owner – Singapore government-controlled Temasek Holdings – from July next year, when the Civil Aviation Authority of Singapore (CAAS) is transformed from a government to a corporate entity.
Temasek will set up a yet-to-be-named company to run the show, while the CAAS will be restructured to become the regulatory authority, overseeing air traffic services and licensing of airlines, aircraft and pilots.
The regulator will cap the maximum revenue the operator is allowed to make per passenger to ensure that passenger and airline charges do not become excessive in the drive for profits.
It will also set service standards. Failure to meet standards will result in penalties for the operator.
The Singapore Government said: “The whole idea of transferring ownership to Temasek is to have a clearer separation of the role of the policymaker, regulator and the operators.”
Changi ranks among the top 10 most profitable airports in the world.
Albert Tjoeng, Asia-Pacific spokesman for the International Air Transport Association, said while the proposed framework seems sound, the devil is in the details.
He said: “Determining the details of the economic regulation framework will be the challenge.â€
By Ian Jarrett, Travelmole Asia
