To combat sluggish cargo demand.
As airlines grapple with depressed cargo volumes, Changi Airport Group (CAG) will roll out a series of support measures to help operators deal with 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. In total, these measures for 2016/17 would amount to about $14 million.
Under the programme, CAG will extend the current incentive scheme which rewards cargo agents based on the volume of cargo handled.
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 cargo operators.
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% on their annual rental.
Apart from this, CAG will be extending the existing 30% landing fee rebate for scheduled freighter operations for another year to 31 March 2017.
“The soft industry outlook is likely to continue in 2016, due to continued headwinds brought about by weaker economic conditions and slowing global trade,” said Lim Ching Kiat, Senior Vice President, Market Development, Changi Airport Group.
Do you know more about this story? Contact us anonymously through this link.