It will now be cheaper for airlines to land at Changi Airport.
Changi Airport Group (CAG) announced yesterday that it will be committing $100 million to initiatives to strengthen Singapore's status as a hub and as a major air gateway in the region.
This includes across-the-board reduction in operating costs for airlines, including 50 per cent rebates for aircraft parking fees and 15 per cent for aerobridge fees.
"These rebates will incentivise airlines to fly to Changi, especially at a time when they are facing stiff competition from KLIA (Kuala Lumpur International Airport)," said K. Ajith, director, AIt will now be cheaper for airlines to land at Changi Airport.sia Transportation Research, UOB Kay Hian.
The Growth and Assistance Incentive (Gain) programme aims to boost passenger traffic and improve operational efficiency at the airport.
The incentives for airlines come amid challenging times for the aviation industry because of the political crisis in Thailand, as well as the disappearance of Malaysia Airlines Flight MH370.
Funds will also be committed to help raise productivity and counter the increasing manpower challenges faced by the ground handling and security agencies at Changi Airport.
In a bid to increase traffic, CAG will also be working with the Singapore Tourism Board on marketing campaigns to raise Singapore's profile in markets like China and Indonesia.
"CAG values the deep partnerships we have with our airline partners and we are cognisant of the market conditions faced by them," said Lee Seow Hiang, chief executive officer of CAG.
He said the programme would provide temporary cost relief while airlines adjusted to the market environment.
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