Singapore’s Changi Airport Group is launching an S$15 million initiative to boost airfreight volumes in the Asia-Pacific. Beginning April 1, freighters landing at Changi Airport will receive a 20-percent fee rebate, while cargo tenants leasing property at the Changi Airfreight Center will enjoy rental rebates of up to 20 percent.
In a press release, Changi officials explained that the Changi Airport Group Initiative, or CAGi, is designed to offset the 4.8 percent, year-over-year, loss the Asia-Pacific airfreight sector experienced in 2011. Changi cited escalating fuel prices and economic problems throughout the U.S. and eurozone as contributors to this decline.
Even so, Changi Airport saw modest freight gains last year, welcoming 1.87 million tonnes of cargo. Although this translates to a 2.8-percent, year-over-year, increase, it’s a figure that’s only on par with 2008 levels, according to the press release.
Changi officials hope CAGi will provide incentives for cargo carriers to operate at the airport. Passenger carriers will also benefit from the initiative, albeit on a lesser level, obtaining 5-percent rebates on landing fees.
“Other CAGi incentives remain in place to support exciting airlines’ traffic growth at Changi Airport and the launch of services to new destinations, as well as to attract new airlines,” according to the press release.
Changi Airport Group CEO Lee Seow Hiang believes these rebates will benefit cargo and passenger carriers tremendously. “We are, hence, fully committed to strengthening our relationship with them through ‘win-win’ partnerships and support programs that will enable our partners and us to overcome the challenges ahead together and sustain our mutual growth for the long-term.”