Singapore's Changi Airport Group (CAG) has revealed a package of support measures for its cargo partners, which will offer cost relief for the sector, which is facing a challenging outlook. The 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 be valid for a year starting from 1 April 2016.
Currently, cargo agents which are leasing cargo facilities from CAG at the Changi Airfreight Centre, already enjoy an incentive scheme which rewards them based on the volume of cargo
Further rebates announced
While this scheme will be extended to 2016/17, CAG will be enhancing the scheme 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% on their annual rental, CAG said in a statement.
It added that the current 30% landing fee rebate for scheduled freighter operations will be extended for another year to 31 March 2017. In total, these measures for 2016/17 would amount to about S$14 million, the airport group said.
It noted that air cargo demand has been subdued by a tough global economic environment, feeble world trade and a slowdown in China’s economy. Consequently, global airfreight volumes only experienced a modest growth of 2.2% in 2015, a slower rate compared to 2014, with all major regions recording weakness in airfreight traffic.
Nol van Fenema