Changi Airport Group (CAG) will introduce a wide-ranging Growth and Assistance Incentive (GAIN) program over the coming year that will see a total investment of S$100m (US$80m) in various initiatives and measures aimed at lowering costs for airlines, boosting passenger traffic and improving operational efficiency at Changi Airport.
From July 1, 2014 to June 30, 2015, all airlines operating at Changi Airport will enjoy an across-the-board reduction in operating costs including rebates of 50% on aircraft parking fees and 15% on aerobridge fees.
In addition, CAG will introduce a new package that will reward airlines for growing transfer traffic at Changi Airport. CAG is also keen to work with airlines to raise efficiency of terminal operations and will provide funding support where appropriate.
To stimulate traffic demand, CAG will invest in destination marketing campaigns to promote Singapore in major source markets including Australia, China, India, Indonesia and Russia. CAG will work with the Singapore Tourism Board as well as travel partners in these markets to increase the awareness of Singapore and spur travel demand from these countries. These efforts will also support the development of new city links to Singapore.
CAG will also work with ground handling and security agencies at the airport to raise productivity levels of their workforce. It will commit funds to support enhancements that reduce these agencies’ manpower requirements and optimize the efficiency of their operations at Changi.
Lee Seow Hiang, CAG’s chief executive officer, said, “CAG values the deep partnerships we have with our airline partners and we are cognisant of the market conditions faced by them. While we cannot iron out the volatilities of the industry cycle, we believe that GAIN will provide helpful temporary cost relief as airlines implement the necessary measures needed to adjust to the evolving market environment.
“At the same time, we believe the programme provides encouraging opportunities for our partners to collaborate with us to explore new ideas and initiatives – whether to stimulate travel demand or to boost productivity – that will collectively position us strongly for the next wave of growth.”