Changi Airport to consolidate terminal operations from May 1st

1 min readUpdated Apr 7, 2020Apr 8, 202011:10 PM

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Singapore’s Changi Airport will close its Terminal 2 from May onwards, consolidating its operations in response to a steep decline in passenger traffic caused by the coronavirus outbreak.

Given the unlikelihood of a return to normal passenger numbers in the near future, Changi will shutter the terminal, allowing ongoing upgrade work to be accelerated.

The move will enable stakeholders to save on running costs and optimize resources across the airport’s terminals to better match the low travel demand and airlines’ flight operations.

The suspension of operations will allow the current Terminal 2 expansion works, currently scheduled for completion in 2024, to be brought forward by up to one year.

Additionally, the airport’s Terminal 4 operations have been scaled down, with a small number of aircraft boarding gates kept in use and shops allowed to close early. Changi may also consider suspending operations at the terminal until normal flights resume.

“Even as our airport capacity is being optimized for the current situation, we will have the flexibility and we stand ready to ramp up operations quickly once the recovery takes place,” said Changi’s executive VP of airport management Tan Lye Teck.

Rentals for retailers operating in D4 have been waived for two months due to very low passenger traffic in the terminal.

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What this means

Changi's decision to consolidate operations is a prudent, albeit drastic, response to current market realities. By closing Terminal 2 and potentially Terminal 4, Changi can significantly cut operating costs and fast-track refurbishment, positioning itself strongly for future recovery. This aggressive capacity reduction will intensify pressure on airport retailers, many of whom are already facing waived rents due to negligible passenger numbers. Unlike Hong Kong International Airport's recent Terminal 2 revamp during a less severe downturn, Changi's move signals a deeper, more proactive adjustment to prolonged disruption. The real test will be how quickly Changi can redeploy its optimised infrastructure when travel demand eventually returns, starting with any announcement regarding Terminal 4's full suspension.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

What is the primary reason for Changi Airport closing Terminal 2 and scaling down Terminal 4 operations?

The closures are a direct response to a steep decline in passenger traffic, caused by the coronavirus outbreak. This allows the airport to save on running costs and optimise resources during a period of low travel demand.

How will the closure of Terminal 2 affect its ongoing upgrade work?

Suspending operations at Terminal 2 will allow the current expansion works to be accelerated. These works were originally scheduled for completion in 2024 but can now be brought forward by up to one year.

What measures have been put in place for retailers operating in Terminal 4?

Due to very low passenger traffic in Terminal 4, rentals for retailers have been waived for two months. Shops in this terminal are also allowed to close early.

Will Changi Airport be able to resume full operations quickly once passenger numbers recover?

Yes, Changi Airport has stated that while capacity is currently optimised for the low demand, they will retain the flexibility and stand ready to ramp up operations quickly once recovery takes place.

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