Changi rolls out major incentive programme for airlines

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

Singapore’s Changi Airport has unveiled a major package of incentives designed to help existing airlines and attract more carriers to the hub.

Through its Growth and Assistance Incentive (GAIN) programme, which will be implemented over the coming year, Changi Airport Group (CAG) will commit SG$100 million (US$80m) to lowering costs for airlines, boosting passenger traffic and improving operational efficiency. The company said the move was intended to “strengthen the airport’s hub status and anchor Singapore as a major air gateway to and from the region”.

Changi will offer rebates on aircraft parking and aerobridge fees
Changi will offer rebates on aircraft parking and aerobridge fees

From 1 July 2014 to 30 June 2015, all airlines operating at Changi Airport will be offered discounted operating costs, including rebates of 50% on aircraft parking fees and 15% on aerobridge fees.

In addition, CAG will introduce a new package to reward airlines for growing transfer traffic at Changi. To boost operational efficiency, CAG said airlines “are being encouraged” to become part of its ‘FAST@Changi’ initiative, which offers self-service options for departing passengers.

Meanwhile, in an effort to stimulate traffic, CAG said it will work with the Singapore Tourism Board (STB) on marketing campaigns to promote Singapore in major source markets including Australia, China, India, Indonesia and Russia. These efforts are also designed to spur new links to Singapore by international carriers.

“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, CAG’s CEO. “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.”

While passenger traffic at Changi has grown strongly since in recent years, the airport suffered declining demand in February and March this year.

Klook.com

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