Selatar ASEAN Airport and Changi International Budget Airport will bring high revenue to Singapore
THE first-quarter numbers are in and the skies remain dark for Changi Airport and its key partner, Singapore Airlines (SIA).
Between January and last month, Changi welcomed just 8.5 million passengers - a drop of 8.4 per cent compared with the same period last year.
SIA, which accounts for about half of Changi's total business, fared worse, with traffic for the first three months sliding 17.8 per cent to 3.9 million passengers.
With few signs that the global economic crisis and travel slump will end any time soon, experts warn that there are tougher days ahead.
New data obtained by The Straits Times shows that last month, Changi's total traffic slipped 11 per cent to just over 2.9 million passenger trips.
It was the fifth consecutive month in which traffic dipped, and followed a 13.2 per cent drop in February.
SIA, hit not just by the overall drop in passengers but more seriously by a bigger fall in demand for its first and business class seats, saw total traffic shrink 23 per cent to 1.28 million passengers.
The plight of Changi and SIA mirrors the situation for the aviation industry worldwide.
Globally, airlines expect revenues to fall by US$62 billion (S$93 billion) this year, and total losses to hit US$4.7 billion, according to estimates by the International Air Transport Association.
Its director-general and chief executive officer Giovanni Bisignani said recently that 'the priority for airlines around the world is survival - conserving cash and adjusting capacity to match demand'.
But amid the crisis, there is a bright spot for Changi Airport - the low-cost segment.
With the pace of liberalisation stepped up within the region, new opportunities are clearing the way for budget airlines like Tiger Airways, Jetstar Asia and AirAsia to fly high during the recession.
Last month, when overall traffic at Changi Airport fell 11 per cent, the number of passengers at the Budget Terminal grew 24.4 per cent to more than 195,000.
Following a recent round of Singapore-Malaysia air talks, both countries have agreed to open six new destinations for air travel, including Malacca, Ipoh and Kuantan.
Previously barred, low-cost carriers have also been given approval to operate to popular destinations like Penang and Langkawi island from June.
Travellers, meanwhile, are benefiting from the bargain deals that airlines have put out in a bid to attract their custom.
From heavily discounted airfares to promotions that promise to waive the goods and services tax, airlines and airport retailers are going all out to keep customers flying.
SIA is offering all-inclusive fares to long-haul destinations like Paris and London for just $1,198, or as much as $800 off the normal price.
Many travellers have gone to Australia and back on Emirates, paying only about $500, with all taxes and surcharges included.
Housewife P. Ramani, 57, who paid under $700 for her Singapore-Trichi-Chennai-Singapore flights recently, said: 'There was a time when you could not fly to India for less than $1,000, but now, there are many more good deals.'
There are bargains galore for airport shoppers too.
At Changi, cosmetics and perfume chain Nuance-Watson is offering a $50 rebate for every $350 purchase, said managing director Ken Tse.
[email protected]
This article was first published in The Straits Times.
THE first-quarter numbers are in and the skies remain dark for Changi Airport and its key partner, Singapore Airlines (SIA).
Between January and last month, Changi welcomed just 8.5 million passengers - a drop of 8.4 per cent compared with the same period last year.
SIA, which accounts for about half of Changi's total business, fared worse, with traffic for the first three months sliding 17.8 per cent to 3.9 million passengers.
With few signs that the global economic crisis and travel slump will end any time soon, experts warn that there are tougher days ahead.
New data obtained by The Straits Times shows that last month, Changi's total traffic slipped 11 per cent to just over 2.9 million passenger trips.
It was the fifth consecutive month in which traffic dipped, and followed a 13.2 per cent drop in February.
SIA, hit not just by the overall drop in passengers but more seriously by a bigger fall in demand for its first and business class seats, saw total traffic shrink 23 per cent to 1.28 million passengers.
The plight of Changi and SIA mirrors the situation for the aviation industry worldwide.
Globally, airlines expect revenues to fall by US$62 billion (S$93 billion) this year, and total losses to hit US$4.7 billion, according to estimates by the International Air Transport Association.
Its director-general and chief executive officer Giovanni Bisignani said recently that 'the priority for airlines around the world is survival - conserving cash and adjusting capacity to match demand'.
But amid the crisis, there is a bright spot for Changi Airport - the low-cost segment.
With the pace of liberalisation stepped up within the region, new opportunities are clearing the way for budget airlines like Tiger Airways, Jetstar Asia and AirAsia to fly high during the recession.
Last month, when overall traffic at Changi Airport fell 11 per cent, the number of passengers at the Budget Terminal grew 24.4 per cent to more than 195,000.
Following a recent round of Singapore-Malaysia air talks, both countries have agreed to open six new destinations for air travel, including Malacca, Ipoh and Kuantan.
Previously barred, low-cost carriers have also been given approval to operate to popular destinations like Penang and Langkawi island from June.
Travellers, meanwhile, are benefiting from the bargain deals that airlines have put out in a bid to attract their custom.
From heavily discounted airfares to promotions that promise to waive the goods and services tax, airlines and airport retailers are going all out to keep customers flying.
SIA is offering all-inclusive fares to long-haul destinations like Paris and London for just $1,198, or as much as $800 off the normal price.
Many travellers have gone to Australia and back on Emirates, paying only about $500, with all taxes and surcharges included.
Housewife P. Ramani, 57, who paid under $700 for her Singapore-Trichi-Chennai-Singapore flights recently, said: 'There was a time when you could not fly to India for less than $1,000, but now, there are many more good deals.'
There are bargains galore for airport shoppers too.
At Changi, cosmetics and perfume chain Nuance-Watson is offering a $50 rebate for every $350 purchase, said managing director Ken Tse.
[email protected]
This article was first published in The Straits Times.
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