Singapore's Changi Airport handled a record 35.03 million passenger traffic and 1.9 million cargo throughput in 2006, an increase by eight per cent and 4.2 per cent respectively over 2005.

Describing the performance as excellence, Transport Minister Raymond Lim said that Changi had risen above many challenges which include high fuel prices and the continuing threat of terrorist attacks.

"Today, Changi Airport is connected to more than 180 cities in 57 countries by more than 80 airlines. The number of weekly scheduled flights has reached an all-time high of 4,199," he said at an annual airport reception here Tuesday.

The year 2006 also saw seven new airlines flying to airport, namely Shanghai Airlines Cargo, Egypt Air, Cebu Pacific, South African Airways, Air India Express, Jetstar Airways and Air Madagascar.

Changi also continued to enjoy strong endorsement from the travelling public and industry, receiving a record of 25 awards last year, he said.

However, Lim said much is still needed to be done as the world changes and competition intensifies.

"To meet these challenges, 2006 saw several infrastructural improvements in Changi Airport. The three-year project to upgrade Terminal 2 was completed at a cost of S$240 million (US$155.4 million)," he said.

Two new terminals were opened for operations -- the S$45 million Budget Terminal for low cost operations and the CIP Terminal to cater to the luxury travel segment.

Infrastructural preparations to handle A380 aircraft operations were also completed at a cost of S$68 million.

Changi's Terminal 1 would also be upgraded this year and works will commence in the third quarter of 2007, he said.