Singapore backs growth with Changi Terminal 5

[SINGAPORE] Singapore’s decision to proceed with the construction of Changi Airport Terminal 5 is being applauded by global aviation leaders as a well-timed and strategic move. Willie Walsh, Director-General of the International Air Transport Association (IATA), praised the investment as a forward-looking response to projected growth in South-east Asia’s aviation sector. He emphasized that capacity must be built ahead of demand to maintain Changi’s reputation for high service standards.

Terminal 5, expected to open in the mid-2030s, will add capacity for 50 million passengers annually, increasing Changi’s total throughput to 140 million. The project reflects both the scale of future demand and Singapore’s ambition to remain a global aviation hub. Walsh, formerly CEO of British Airways, noted IATA has been in regular talks with Singapore’s government and airport operator, stressing the importance of infrastructure that aligns with airline needs.

He also commented on broader industry issues, including the mismatch between airport investments and airline expectations in other markets. Walsh argued for better cooperation between airports and carriers to ensure efficient, cost-effective operations. He further supported the consolidation of Singapore Airlines and Scoot at T5, calling it a common and practical arrangement at hub airports. Meanwhile, India’s IndiGo CEO highlighted rising regional traffic between India and South-east Asia, reinforcing forecasts of continued demand across the region.

Implications

For Business and Infrastructure Planners

The development of T5 signals that Singapore is not only preparing for recovery from the pandemic-era downturn but positioning itself for long-term regional dominance. Infrastructure investors and suppliers across construction, engineering, and logistics should see opportunities tied to T5's multibillion-dollar buildout.

For Airlines and Travel Operators

Airlines with ambitions in Asia—especially low-cost and full-service carriers—should anticipate expanded routes and increased passenger flow through Singapore. Changi’s rising capacity may further shift network strategies, especially for regional carriers leveraging Singapore as a hub.

For Regional Economic Policy

The emphasis on India and China as growth engines underscores how regional connectivity policies and air traffic liberalization will shape competitive dynamics. Southeast Asian nations may seek to upgrade or reimagine their own airport infrastructure to compete or complement Singapore’s mega-terminal.

What We Think

Singapore is playing the long game in aviation, and Terminal 5 is its flagship bet on the future. In a sector where many airports react to demand rather than anticipate it, Changi’s forward investment strategy sets it apart. As Willie Walsh aptly put it, “capacity must be available ahead of the demand”—a mantra that more global hubs would do well to follow.

The decision to consolidate operations for Singapore Airlines and Scoot at T5 will also strengthen Changi’s appeal as a seamless interline hub, benefiting transit passengers and the broader ecosystem. While concerns over fairness for other carriers are valid, hub airports globally have long prioritized efficiency over neutrality.

T5’s success, however, will depend not just on architecture or capacity, but on how well Singapore aligns digital innovation, passenger experience, and regional connectivity. If India’s and China’s aviation demand continues its upward trajectory, T5 could be opening right on time—not too early, not too late.