SINGAPORE : The search is now on for a name for the new low-cost terminal at Changi Airport.
The site for the terminal was launched on Wednesday by Transport Minister Yeo Cheow Tong.
To be ready in about a year, it will serve the growing demand for low-cost travel into and out of Singapore.
Mr Yeo says the low-cost sector is seeing strong growth and the potential in Asia is tremendous.
Budget travel in Asia now comprises only 5 percent of the intra-regional market, compared to 10 percent in Europe, 25 percent in the US and 40 percent in Australia.
But with ASEAN's 500 million people, and 2.3 billion more in China and India, intra-Asian air travel may one day overtake even the US.
In Singapore, Mr Yeo says that as at May 1, low cost carriers operate 175 weekly services to 15 cities, up from 70 weekly services in just six months.
This accounts for about 7 percent of Changi's flights, with this phenomenal growth achieved in just one year.
But low-cost carriers still face many challenges in Asia because the operating environment in Asia is vastly different from that of the US or Europe.
First, many Asian cities do not have secondary airports for low-cost carriers.
Second, low Internet penetration means low-cost carriers have to provide call centres and rely on travel agencies, thereby increasing costs.
Third is the regulatory environment.
While some Asian countries have liberalised their aviation markets, most are still very protective of their air rights.
Notwithstanding these factors, Mr Yeo says the low-cost carrier phenomenon is here to stay.
Singapore has studied the developments elsewhere and looks forward to the significant multiplier effects that increased tourism will have on its economy.
It will continue to actively liberalise its Air Services Agreements with other countries, both through bilateral negotiations, as well as through multi-lateral frameworks.
And it welcomes all airlines to operate from Changi -- both low-cost and full service carriers. - CNA /ct
Perhaps should name it after our People's president, Mr Wee Kim Wee.
