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Singapore's budget terminal spurned by Jetstar Asia, Valuair

20-Jun-2006

SINGAPORE (XFNews-ASIA) - Low-cost carriers Jetstar Asia and Valuair have decided against operating from the Budget Terminal at Changi Airport here, a spokesperson for the aviation authorities said.


"They have recently informed us that they will continue to operate in Terminal One," the spokesperson said.

Jetstar Asia and Valuair merged last July and their main shareholder is Orangestar Holdings Pte Ltd.

Earlier, the Straits Times reported that the airlines were prepared to operate out of the Budget Terminal to cut costs but that a survey of 3,000 passengers had led to a change in thinking.

"An overwhelming majority said 'no' to moving to the Budget Terminal," the newspaper quoted Chong Phit Lian, chief executive of Orangestar Holdings, as saying.

"Assigned seating was also very high on their priority list. The customer must come first so it's Terminal One for us," she reportedly said.

The Budget Terminal opened in March. It has capacity for 2.7 mln passengers a year and, after expansion in the future, will have capacity for up to 5 mln passengers a year.

Tiger Airways, another low-cost carrier, is the only operator using the new facility.

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