Changi Airport introduces support package for cargo partners
19 February 2016 • Author: Katie Sadler, Digital Content Producer, International Airport Review
Changi Airport Group has announced a package of support measures for its cargo partners as industry conditions remain weak.
Measures totaling S$14 million have been announced by Changi Airport (CAG) to provide support for its cargo partners. The funding will provide the sector with cost relief against the backdrop of a challenging outlook for the global airfreight industry. These measures, which include a one-time Special Assistance Package (SAP) for cargo agents and the extension of a landing fee rebate for scheduled freighter flights will apply for a year starting from 1 April 2016 (2016/17).
Changi Airport support package totals S$14 million
Currently, cargo agents leasing cargo facilities from CAG at the Changi Airfreight Centre enjoy an incentive scheme which rewards them based on the volume of cargo handled. This scheme will be extended to 2016/17 to provide Changi’s cargo partners with continued cost assistance while encouraging growth. In addition, in view of the uncertain industry outlook, CAG will be enhancing the scheme in 2016/17 with a one-time SAP to provide increased cost support to the cargo partners. With this enhancement, cargo agents that achieve strong growth will potentially be able to enjoy cost relief equivalent to a rebate of up to 45 percent on their annual rental.
CAG will also be extending its existing 30 percent landing fee rebate for scheduled freighter operations until 31 March 2017. In total, these measures for 2016/17 would amount to about S$14 million.
Global airfreight volumes experienced a slowdown in growth during 2015 measuring a 2.2 percent increase compared to the previous year. The slump has been attributed to a tough global economic environment, and a subdued Chinese economy.
Mr Lim Ching Kiat, Senior Vice President, Market Development, Changi Airport Group, said: “The soft industry outlook is likely to continue in 2016, due to continued headwinds brought about by weaker economic conditions and slowing global trade. In light of the trying business conditions, we are committed to support our cargo partners through these difficult times. Amid the challenges, we hope that CAG’s package of support measures for our cargo partners will serve as a source of optimism.”