Singapore Changi Introduces Fee Incentives

The Changi Airport Group (CAG) has announced several reductions and rebates to aeronautical fees at Singapore Changi Airport, which will benefit airlines, ground handling agents and passengers. These include reductions to passenger service fees for transfer/transit passengers, landing fees for larger aircraft types, and franchise fees for flight catering and ground handling services. Existing rebates on landing fees for long-haul flights, aircraft parking and aerobridge charges will also be extended. In addition, CAG says there will be strategic support measures designed to encourage airlines and ground handlers to attain high service and efficiency standards at Changi Airport, and to support them in the implementation of productivity enhancement initiatives at the airport. Together, CAG says, the various measures will provide support to airlines and ground handlers amid challenging business conditions, while strengthening the competitiveness of the Changi air hub.
CAG seeks to increase its transfer and long-haul traffic. Towards this end, the Passenger Service Charge for transfer and transit passengers will be reduced by two-thirds from S$9 to S$3 for travel from July 1, 2015, onwards on tickets purchased from May 1.
In addition, a 50% landing fee rebate – for direct long haul flights exceeding a duration of nine hours – which is currently in place and due to expire on March 31, 2016, will be extended for another year. These measures will strengthen the attractiveness of Changi Airport as a long-haul transfer hub for both airlines and passengers.
Also, with effect from May 1, 2015, there will also be a decrease in landing fees of up to 5% for large aircraft weighing over 360 tonnes, including the A380 and certain B747 aircraft types. This will make it more attractive for airlines to operate larger aircraft at Changi Airport, which allows for more efficient utilisation of runway capacity so as to serve more traffic.
CAG will extend a number of existing rebates enjoyed by airlines. The ongoing 50% parking fee rebate and 15% aerobridge fee rebate – which were originally scheduled to end on June 30, 2015 – will be extended to March 31, 2017.
In addition, to support the cargo sector, the existing 50% landing fee rebate for scheduled freighter operations – which was due to expire on March 2015 – has been extended to September 30, 2015. Following which, the rebate will be adjusted to 30% and apply until March 31, 2016. Separately, incentives for cargo agents leasing CAG’s cargo facilities at the Changi Airfreight Centre have also been extended to March 31, 2016.
To help ground handling companies during what it describes as a: “difficult operating backdrop of rising business costs and tight labour supply” CAG says it will help its airport partners by introducing a 20% rebate on both flight catering and ground handling franchise fees from May 1. The airport operator says this should provide funds to enable ground handling companies to enhance service levels by increasing staffing levels during peak periods.
CAG’s CEO, Mr Lee Seow Hiang, commented: “Changi Airport’s success is very much dependant on the contributions of our airport partners, including airlines and ground handlers.
“The range of measures we have announced is a demonstration of CAG’s continued commitment and support to our partners, as we work with them to achieve success and growth of their operations at Changi Airport. At the same time, we hope to spur the continual pursuit of high service standards at the airport.”