SINGAPORE. Changi Airport Group (CAG) has revealed a programme of reductions and rebates to aeronautical fees at Singapore Changi Airport, which it said would benefit airlines, ground handling agents and passengers. It said the initiatives would enhance Changi’s competitiveness.
The move may have implications for commercial operators at Changi. At airports worldwide, reduced income from traditional sources, principally aeronautical, has led to increased pressure on non-aeronautical revenues, from retail to food & beverage to car parking.
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“The range of measures we announce today is a demonstration of CAG’s continued commitment and support to our partners.“ |
Lee Seow Hiang Chief Executive Officer Changi Airport Group |
The measures at Changi 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, there will be strategic support measures designed to encourage airlines and ground handlers to improve service and be more productive.
CAG said: “CAG remains committed to ensure Changi Airport’s position as a major global air hub, and seeks to grow transfer and long-haul traffic as part of this goal. 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 1 July 2015 onwards.”
In addition, a 50% landing fee rebate for long haul flights, which is currently in place and due to expire on 31 March 2016, will be extended for another year to 31 March 2017.
CAG will extend a number of existing rebates. A 50% parking fee rebate and a 15% aerobridge fee rebate – which were originally scheduled to end on 30 June 2015 – will be extended to 31 March 2017.
The airport company said: “Against a difficult operating backdrop of rising business costs and tight labour supply, CAG will help airport partners alleviate these challenges and support them to achieve high standards in service and efficiency levels.
With effect from 1 May, there will be a 20% rebate on both flight catering and ground handling franchise fees.
In addition, CAG will roll out incentives for airlines and ground handlers to drive higher levels of efficiency and productivity, as it accelerates new processes and technologies – including Fast and Seamless Travel (FAST) and early check-in services.
CAG Chief Executive Officer Lee Seow Hiang said: “Changi Airport’s success is very much dependant on the contributions of our airport partners, including airlines and ground handlers. Notwithstanding lower fuel prices, the operating environment in the near-term remains challenging for the region’s airline industry. Likewise, there are also tough conditions for our ground handlers. They face severe manpower constraints which may affect their ability to maintain the high level of service and efficiency expected by airlines and their passengers.
“The range of measures we announce today 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.”
