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Jetstar Asia, Valuair reject no-frills terminal

Singapore, June 19

Singapore-based budget carriers Jetstar Asia and Valuair have decided against operating from Changi Airport’s no-frills Budget Terminal, an aviation official confirmed today.

 ‘‘CAAS was in discussion with Jetstar and Valuair to operate from the Budget Terminal. They have recently informed us that they will continue to operate in Terminal One,’’ a CAAS spokesperson said.

 Jetstar Asia and Valuair merged last July and are held by the main shareholder Orangestar Holdings Pte Ltd. Jetstar is 49 per cent owned by Australia’s Qantas.

 The airlines were prepared to operate out of the Budget Terminal to cut costs but a survey of 3,000 passengers led to a change in thinking.

 ‘‘An overwhelming majority said ’No’ to moving to the Budget Terminal,’’ Chong Phit Lian, chief executive officer of Orangestar Holdings, was quoted 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 said.

 Changi Airport operates two other terminals with a third to open in 2008. Terminals One and Two are known for their wide array of duty-free shops, eateries and entertainment options including a poolside bar.

 The Budget Terminal, in contrast, is sparsely furnished and has no escalators or travellators.

 Singapore’s USD 27.8-million budget facility opened in March with a capacity for 2.7 million passengers a year and up to five million after future expansion.

Wonder what Air India Express will do now. They were to have become the second LCC to move into this terminal and operate Chennai to Singapore flights.