Singapore’s Changi Airport Group (CAG) announced on Dec. 19 that it is raising rebates for landing fees at Changi Airport to 50 percent for all scheduled freighter flights for the first six months of 2013.
This additional initiative, amounting to S$4.5 million (US$3.7 million), brings CAG’s total support for the air cargo sector to close to S$20 (US$16.4 million) since the start of FY2012/13 (year ending March 31, 2013)
In March 2012, CAG announced a S$15-million (US$12.3 million) cargo support package consisting of a 20 percent landing fee rebate for freighter flights, partnership funding support for new cargo development initiatives, as well as up to 20 percent rental rebates for cargo tenants leasing CAG cargo facilities at the Changi Airfreight Centre2.
While passenger traffic at Changi has been growing steadily over the past year, the air cargo sector has been facing downward pressure due to falling yields of airfreight carriers, as well as persistently high jet fuel prices. The International Air Transport Association has reported that the global cargo tonnage is likely to contract 2 percent in 2012. In Singapore, the manufacturing sector has declined for four consecutive months, and the country’s growth forecast for 2012 has been cut to around 1.5 percent on the back of a sharp contraction in electronics manufacturing for Q3 2012.