Outraged by the Singapore government’s collection of pre-funding taxes of S$13.30 per passenger, the International Air Transport Association (IATA) called for the Singapore government to make transparent how much does the new Terminal 5 costs:
“We are also hoping to have greater transparency on what is the projected cost of Changi East and Terminal 5, and how the costs are being apportioned between the government, Changi Airport Group, airlines and passengers.”
The cost of building Prime Minister Lee Hsien Loong’s pet project Terminal 5 remains a state secret. The Singapore government earlier said it will use S$9 billion taxpayers money and an additional S$3.6 billion from state-owned company Changi Airport Group. However, the government said they will need to borrow more money to fund the elusive airport terminal, which is way unaffordable even for one of world’s richest countries.
The IATA also slammed the tax increase as unfair and the practice as against international standards:
“the industry is against pre-funding for infrastructure projects, where passengers and airlines have to pay for services and facilities they do not currently utilise. It is unfair to expect passengers and airlines to pay in advance for a facility they may or may not use in the future when the facility is ready. It also goes against the International Civil Aviation Organization’s (ICAO) charging principle of cost relatedness – where passengers and airlines are charged for the cost of services actually used.”