Statute Details
- Title: Civil Aviation Authority of Singapore (Service Charge) Order 2009
- Act Code: CAASA2009-S310-2009
- Type: Subsidiary legislation
- Enacting Act / Power: Made under section 88 of the Civil Aviation Authority of Singapore Act 2009
- Approval requirement: With the approval of the Minister for Transport
- Commencement: 1 July 2009
- Current status (as provided): Current version as at 26 Mar 2026
- Key provisions: ss 1–6 and the Schedule (Service charges)
- Notable defined terms: “air navigation services”, “airport licensee”, “service charge”, “3-month compounded SORA”, “SORA”, “business day”, “prescribed methodology”
- Remission authority: Chief Executive (waive/remit service charge or interest)
What Is This Legislation About?
The Civil Aviation Authority of Singapore (Service Charge) Order 2009 (“Service Charge Order”) sets out how the Civil Aviation Authority of Singapore (“Authority”) charges airport licensees for the provision of air navigation services. In practical terms, it establishes a statutory charging mechanism: the airport licensee must pay the Authority a service charge for each specified air navigation service, calculated according to a schedule of rates and rules on when and how the charge is payable.
The Order is designed to operationalise the Authority’s statutory role in providing (or procuring) air navigation services that support safe and efficient air traffic management. It does not itself describe operational standards for air traffic services; rather, it focuses on the financial and administrative framework for recovering costs through service charges.
In addition to setting the charging obligation, the Order addresses late payment economics and payment administration. It specifies a prescribed interest rate for arrears, provides how the Authority may apply payments, and grants a remission discretion to the Authority’s Chief Executive. These provisions are important for practitioners advising on compliance, disputes over amounts, and the consequences of late payment.
What Are the Key Provisions?
1. Citation and commencement (paragraph 1)
Paragraph 1 provides the citation and states that the Order came into operation on 1 July 2009. This is relevant for determining the temporal scope of charging and for assessing whether any payment obligations arise for periods before or after commencement.
2. Definitions (paragraph 2)
Paragraph 2 defines key terms used throughout the Order. The most legally significant definitions include:
- “air navigation services”: services provided to air traffic during all phases of operations to ensure safe and efficient movement. It includes air traffic control, air traffic advisory services, flight information services, alerting/search and rescue-related services, communications/navigation/surveillance services, meteorological services, and aeronautical information services.
- “airport licensee”: the holder of an airport licence for an airport.
- “service charge”: any charge payable under the Order.
- “SORA” and “3-month compounded SORA”: these are benchmark interest rate concepts published by the Monetary Authority of Singapore (MAS). The Order specifies how “3-month compounded SORA” is computed and when it is published, including different publication dates depending on whether the relevant period falls within the 6-month windows beginning on 1 April or 1 October.
- “business day” and “bank holiday”: used to determine publication timing and, indirectly, the interest calculation mechanics.
- “prescribed methodology”: the methodology document titled “Compounded Singapore Overnight Rate Average Index (“SORA Index”), Compounded SORA and MAS Floating Rate Notes (“MAS FRN”): A User Guide” dated 16 March 2021.
3. Service charge for air navigation services (paragraph 3)
Paragraph 3 is the core charging provision. It imposes a direct obligation on the airport licensee to pay the Authority a service charge for each air navigation service specified in the Schedule. The amount is calculated as the sum of the amounts in the second and third columns of the Schedule corresponding to each air navigation service.
Several sub-rules are particularly important for compliance and accounting:
- Coverage across airports (paragraph 3(2A)(a)): the service charge amount is payable in respect of all airports for which the airport licensee holds an airport licence.
- Monthly or part-month liability (paragraph 3(2A)(b)): subject to paragraph 3(3), the charge is payable for each month or part thereof in which the air navigation service is provided to any of those airports.
- Due date (paragraph 3(2A)(c)): the charge must be paid on the last day of the month to which it relates.
- No abatement for non-availability (paragraph 3(3)): crucially, no abatement is allowed even if an air navigation service is not available. This is a strict rule: the liability is not reduced due to service interruptions or unavailability, at least as a matter of “abatement” under the Order.
4. Prescribed interest for late payment (paragraph 4)
Paragraph 4 sets the interest rate for late payment. For purposes of section 88(1) of the Act, the prescribed interest is calculated as 4.5 percentage points above the 3-month compounded SORA, for the relevant arrears period.
The interest period runs:
- from the date the payment (or part) is in arrears; and
- until the date the service charge is paid in full to the Authority.
For practitioners, this matters in two ways. First, it provides a formulaic benchmark rather than a fixed rate, so interest can vary over time with SORA. Second, it ties the interest accrual to the “in arrears” date and the “paid in full” date, which can be relevant where partial payments are made or where there is a dispute about the quantum.
5. Application of payments (paragraph 5)
Paragraph 5 gives the Authority discretion to apply monies paid by the airport licensee. The Authority may apply payments first towards interest payable under the Order, and then apply any remaining balance towards outstanding service charge.
This provision can be commercially significant. If an airport licensee makes a payment that does not cover both principal and interest, the Authority’s discretion may result in interest being cleared first, potentially affecting how quickly principal arrears are reduced and how interest continues to accrue.
6. Remission (paragraph 6)
Paragraph 6 empowers the Chief Executive to waive or remit wholly or in part any service charge or interest payable under the Order. This is a discretionary relief mechanism. While it does not create an automatic right to remission, it provides a legal basis for the Authority to consider mitigating circumstances and to reduce financial exposure where appropriate.
The Schedule (Service charges)
The Schedule contains the actual service charge rates/amounts for each air navigation service. Although the extract provided does not reproduce the Schedule’s numerical content, paragraph 3 makes clear that the service charge for each service is the sum of the amounts in the Schedule’s second and third columns. For any practitioner advising on liability, the Schedule is therefore indispensable: it determines the quantum and the classification of services for charging.
How Is This Legislation Structured?
The Order is structured in a straightforward manner:
- Enacting formula: states the legal basis (section 88 of the Act) and that the Authority makes the Order with ministerial approval.
- Paragraph 1: citation and commencement.
- Paragraph 2: definitions, including detailed interest-rate benchmark definitions tied to MAS publication and a specified methodology.
- Paragraph 3: the charging obligation and calculation mechanics, including monthly payment timing and the “no abatement” rule.
- Paragraph 4: prescribed interest for late payment using a SORA-linked formula.
- Paragraph 5: application of payments (interest first, then principal).
- Paragraph 6: remission discretion by the Chief Executive.
- Schedule: lists the air navigation services and the corresponding service charge amounts.
Who Does This Legislation Apply To?
The Order applies primarily to the airport licensee—the holder of an airport licence for an airport. Where an entity holds licences for multiple airports, the service charge is payable in respect of all those airports (paragraph 3(2A)(a)).
Operationally, the Order also assumes the Authority provides (or is responsible for) “air navigation services” as defined. However, the direct payment obligation is placed on the airport licensee. The remission discretion is held by the Authority’s Chief Executive, and the Authority has discretion on payment allocation under paragraph 5.
Why Is This Legislation Important?
This Order is important because it converts the Authority’s air navigation service function into a legally enforceable charging regime. For airport operators and their counsel, it provides the statutory basis for invoicing, payment schedules, and the consequences of non-payment.
Strictness on abatement is a key feature. Paragraph 3(3) states that no abatement is allowed if an air navigation service is not available. This can be a flashpoint in commercial disputes. Practitioners should note that the Order forecloses arguments for reduction of service charges on the basis of non-availability alone (at least within the framework of “abatement”). Any relief would likely need to be pursued through remission (paragraph 6) or other legal avenues outside “abatement” under the Order.
Interest and payment allocation further increase the compliance stakes. The SORA-linked interest formula means arrears can become more expensive over time, and the Authority’s discretion to apply payments first to interest can affect settlement strategy. Where there is a dispute about the amount payable, counsel should consider whether to make payments “under protest” or otherwise to reduce interest exposure, while preserving arguments on quantum—bearing in mind the “paid in full” trigger for stopping interest accrual.
Finally, the remission power offers a practical safety valve. While discretionary, it is a statutory mechanism that can be invoked to mitigate hardship or address exceptional circumstances. For practitioners, this means that even where strict charging rules apply, there may be an administrative route to partial or full relief.
Related Legislation
- Civil Aviation Authority of Singapore Act 2009 (Act 17 of 2009) — in particular section 88 (power to prescribe service charges and related matters)
- Banking Act 1970 — definition of “bank holiday” reference (section 60(1))
- Monetary Authority of Singapore (MAS) SORA publications — relevant for the benchmark used in the interest calculation (as referenced in the Order)
Source Documents
This article provides an overview of the Civil Aviation Authority of Singapore (Service Charge) Order 2009 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.