Singapore's Changi Airport Group (CAG) has announced a S$14m 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”.
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 apply for a year, starting from April, said the airport group.
Changi handled 1.8m tonnes of airfreight in 2015, a 0.6% increase on the prior year.
Said CAG: “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 experienced a modest growth of 2.2% in 2015, a slower rate compared to 2014, with all major regions recording weakness in airfreight traffic.”
Lim Ching Kiat, senior vice president, market development at CAG, 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.”
Currently, cargo agents leasing cargo facilities from CAG at the Changi Airfreight Centre have access to 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”.
The airport authority added: “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% on their annual rental."
On top of this, CAG will be extending the existing 30% landing fee rebate for scheduled freighter operations for another year to the end of March 2017.
