Changi Airport Group is to extend its package of support measures for cargo operators for another year as the worldwide airfreight industry continues to struggle.
The measures, worth about 14 million Singapore dollars ($10 million) including a 30 per cent landing fee rebate for scheduled freighter operations and an incentive scheme rewarding agents on the volumes handled, will run until 31 March 2017. Under the special assistance package for cargo agents leasing facilities at the Changi Airfreight Centre, those achieving strong growth can receive a relief equivalent to a rebate of up to 45 per cent off their annual rent.
Changi Airport Group senior vice president for market development, Lim Ching Kiat says: “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.”
According to the International Air Transport Association, airfreight grew by 2.2 per cent in 2015 due to global weakness and the slowing Chinese economy. Changi Airport saw an increase of 0.5 per cent to 1.8 million tonnes. In 2015 it welcomed freighter airlines – My Indo Airlines, Polar Air Cargo and AirBridgeCargo Airlines. Pharmaceuticals at Changi grew by 45 per cent year on year, from a small base.