Changi Airport beefs up cargo industry support with $14m package
Measures totalling S$14 million (US$9.96 million) include a one-time special assistance package, extended landing fee rebate and continuation of growth incentives
February 17, 2016
By Donald Urquhart
Changi Airport Group (CAG) announced today a S$14 million package of support measures for its cargo partners, which 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.
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 (subject to certain caps based on rental payable). 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 payment 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 per cent on their annual rental.
On top of this, CAG will be extending the existing 30 per cent landing fee rebate for scheduled freighter operations for another year to 31 March 2017. In total, these measures for 2016/17 would amount to about S$14 million (US$9.96 million).