Singapore's Changi Airport Group (CAG) says it is increasing its support for the air cargo sector in the face of continuing headwinds in the air freight business.
According to the Shipping Gazette, for the first six months of 2013, rebates for landing fees at the airport will be raised from 20 to 50 per cent for all scheduled freighter flights. This additional initiative, amounting to S$4.5 million (US$3.7 million), brings CAG's total support for the air cargo sector close to S$20 million since the start of FY2012/13, an official statement said.
In March 2012, CAG announced a S$15 million cargo support package for FY2012/13 consisting of a 20 per cent landing fee rebate for freighter flights, partnership funding support for new cargo development initiatives, as well as up to 20 per cent rental rebates for cargo tenants leasing CAG cargo facilities at the Changi Airfreight Centre.
The air cargo sector has been facing downward pressure due to falling yields among carriers, as well as persistently high jet fuel prices. The International Air Transport Association has reported that the global cargo tonnage is likely to contract two per cent in 2013.
In Singapore, the manufacturing sector has declined for four consecutive months, and the country's growth forecast for 2012 has been cut to around 1.5 per cent on the back of a sharp contraction in electronics manufacturing in the third quarter.
Correspondingly, total cargo throughput at the airport has declined 2.7 per cent year-on-year to 1.65 million tonnes for the first 11 months of 2012. In November 152,000 tonnes of cargo were handled, representing a decrease of 5.1 per cent compared to the same month a year earlier.
Said CAG chief executive Lee Seow Hiang: "Our cargo industry partners have expressed continued concern about the outlook for the sector given the on-going uncertainty about the health of the world's major economies. Thus, CAG has decided to provide this additional support to moderate operating costs for cargo airlines at Changi Airport. This is our commitment to building strong partnerships, in good times as well as bad." |
