These support measures will be put in place for a year starting in April and will include a one-off Special Assistance Package for cargo agents, which will reduce annual facility rental by up to 45% compared to the standard rates, as well as a 30% landing fee rebate for scheduled freighter flights. The group has said that these “support measures” have been put in place to provide “cost relief against the backdrop of a challenging outlook for the global airfreight industry”.
Changi Airport Group SVP market development, Lim Ching Kiat, anticipates that the industry will see “strong headwinds” in 2016 that will continue to reflect the weak economic performance in Asia.
In 2015, Changi saw poor growth statistics, with only 0.5% increase in overall cargo volumes for the year compared to 2014. It has consequently placed particular emphasis on high value and perishable goods in a move to combat this ongoing decline. To this end, it recently opened new cold storage facilities for temperature-sensitive and trans-shipment capacity in specialist sectors like the pharmaceutical industry.
In addition, CAG is proposing an incentive scheme to help reduce costs to the cargo handler, whereby it will offer further discounts on facility leasing agreements, based on the volume of cargo handled. “In light of the trying business conditions," Lim added, "we are committed to support our cargo partners through these difficult times." Encouragingly, actions certainly seem to be speaking as loudly as words on this occasion.
