Changi slashes airline fees

Changi Airport faces increased competition from the Middle East.

Singapore's Changi Airport will slash fees from next month as airline customers face a tough operating environment and the hub faces increased competition from the Middle East.

Traffic at the airport - the fifth-largest by international passenger traffic - fell in February and March compared with the previous year.

From July 1 all airlines operating at the airport will benefit from an across-the-board reduction in operating costs including rebates of 50 per cent on aircraft parking fees and 15 per cent on aerobridge fees.

Air New Zealand is set to benefit from lower fees. It has plans to fly to Singapore after a break of eight years as part of an alliance with Singapore Airlines it hopes will be approved by the end of the year.

The airport said it would also introduce a new package to reward airlines for increasing transfer traffic at Changi Airport.

While passenger traffic has grown since the industry's recovery following the global financial crisis, a number of market factors contributed to the decline.

Changi handled 53.7 million passengers last year and handles 6700 flights every week, or about one every 90 seconds.