Gov't extends support package for aviation's digital transformation
The package is likely to include cost relief and salary support measures.
The government has extended its aviation support package and it is believed to help airlines in their digital transformation and to ensure their smooth and safe transition as Singapore reopens.
The extension of the package is outlined in the proposed 2022 budget unveiled on Friday, but details of the package will be announced at the Committee of Supply Debate (CSD) by the Minister for Transport.
OCBC Investment Research said the package would likely include cost relief measures such as rebates on aircraft landing and parking charges and salary support measures.
These measures, however, could “be in lower quantum” this year, and will potentially just be extended for a short period to aid the recovery of the sector.
The analyst said 2022 will be a year of continued technology improvements and digital transformation for the aviation sector.
“Aviation companies which can innovate and adapt quickly to the regulatory requirements and passenger needs will emerge stronger post-COVID-19,” OCBC said.
Apart from digital transformation, OCBC said airlines will also focus on sustainability efforts as they gradually recover from the pandemic.
This will be supported by the government’s initiatives under the 2022 budget to make Singapore the “go-to location in Asia for expertise in carbon services” and “frontrunner in the development of sustainable aviation and marine fuel.”
“We believe that companies with good ESG scores are poised to benefit from improved efficiency and service quality, and will be looked upon favourably by ESG-minded investors due to the companies’ long-term sustainability,” the analyst said.
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