* Sees its fares rising by 15-20 pct in that mkt on Changi'smove
* Changi is world's 6th busiest airport for internationaltraffic
* Jetstar CEO hoping for continued profitability at AsianJVs (Adds comments on fleet, operations)
By Aradhana Aravindan
SINGAPORE, March 2 (Reuters) - Qantas Airways' QAN.AX budget arm Jetstar said Singapore's move to raise passenger feesat its Changi Airport will compel the carrier to "shift flightsaround" to cope with changes in demand and may impact thecity-state's aviation hub status.
The Civil Aviation Authority of Singapore (CAAS) saidearlier this week it would introduce a new airport developmentlevy effective July 1 of S$10.80 ($8.17) for passengers whobegin their trips from Changi and S$3.00 for those transiting.
Changi Airport is also raising a passenger service andsecurity fee, currently at S$27.90, by S$2.50 from July 2018.The fees will also be increased by S$2.50 annually over the nextsix years from April 2019. The measures are to help fund thecity-state's airport expansion plans, which include a fifthterminal that is to be completed around 2030.
Jetstar's CEO Gareth Evans said on Friday the additionalfees would lead to an average increase of 15-20 percent on thefares the company sells in this market.
"We are going to have to shift flights around because demandwill change," Evans told Reuters on the sidelines of the CAPAGlobal LCC Summit in Singapore.
"Singapore is competing with Hong Kong, China and MiddleEastern hubs. People will change hubs to fly to Europe, for afew dollars," he said.
Last month, the head of the International Air TransportAssociation (IATA) said that growing cost of airportinfrastructure posed risks to the global airline industry'sprofitability and growth. which is the world's sixth busiest airport forinternational traffic, saw a record 62.2 million passengers in2017.
Qantas, which reported a record half-year profit inFebruary, is due to move its hub to Singapore from Dubai at theend of this month. has three Asian joint venture units, Jetstar Asia(Singapore), Jetstar Japan and Jetstar Pacific (Vietnam). Evanssaid he hoped for continued profitability at the Asian ventures,after all three had a profitable half, which happened for thefirst time.
Jetstar is scheduled to take delivery of 18 Airbus AIR.PA A321neo LR from 2020, which have a longer range than the olderA320s they would be replacing. It has an order stream of 99A320neo family jets.
Evans said the company would probably ultimately need afleet that was equally balanced between A321neo and A320neoaircraft, but the Airbus order remained flexible. ($1 = 1.3214 Singapore dollars)