How much profits does Changi airport generate?
I refer to the article “Parliament: Changi Airport to put part of profits into government funds to support expansion, deal with crises” (Straits Times, Mar 19).
It states that “Changi Airport will soon have to park part of its annual profits into two separate funds, as part of the Government’s plans to ensure that there are enough resources to deal with aviation crises and support expansion plans.
Separately, Changi Airport will also have to make annual contributions to the Changi Airport Development Fund (CADF), which was set up in 2015 to support airport expansion projects.
So far, the Government has injected about $4 billion into the kitty.”
I found it rather odd that there was no mention of the profits of Changi Airport Group (CAG).
According to CAG’s annual report for FY2016/2017 – its profit (total comprehensive income) after tax was $719 million for FY2016/2017.
Its combined Share capital and reserves ($3.4 billion) and Retained profits ($3.7 billion) was about $7 billion.
As to “T5 is slated to open around 2030” – if its annual profits ($719 million) and dividends paid ($274 million to its parent company (Temasek)?) continue into the future – it may total up to about $8.6 billion ($719 x 12 years) by 2030, when terminal 5 is completed.
If we add this figure ($8.6 billion) to the current retained profits of $3.7 billion – we get $12.3 billion.
By the way – how much dividends have been paid to its parent company in the past – billions?
In this connection, I understand that Changi airport was transferred to Temasek at a very low price of just $3.3 billion, for the ‘World’s Most Awarded Airport’ which then had total assets of $7.2 billion.
Leong Sze Hian