Singapore's Changi Airport Group (CAG) has announced support measures for its cargo sector to reduce costs and boost the global airfreight industry amid challenging conditions.
The support package includes a one-time special assistance package (SAP) for cargo agents and an increase in the landing fee rebate for scheduled cargo flights.
These measures will be applicable for one year starting from 1 April.
Agents who lease cargo facilities from CAG at the Changi Airfreight Centre are rewarded with an incentive scheme based on the volume of freight handled.
This incentive scheme will be extended for the period of 2016-17 and will provide cost assistance to the cargo partners of CAG and help them improve their business.
With the extension of the incentive scheme, the cargo agents will be able to enjoy a cost reduction equivalent to a rebate of up to 45% on their annual rental.
CAG will also extend the existing 30% landing fee rebate for scheduled cargo operations for another year to 31 March 2017.
The entire support package provided to the cargo partners will amount to approximately S$14m ($9.98m).
The air cargo industry of CAG has received a blow due to a challenging global economic environment, a fall in China's economy and weakening world trade.
Changi Airport Group Market Development senior vice-president Lim Ching Kiat said: "The soft industry outlook is likely to continue in 2016, due to continued headwinds brought about by weaker economic conditions and slowing global trade.
"In light of the trying business conditions, we are committed to support our cargo partners through these difficult times.
"Amid the challenges, we hope that CAG's package of support measures for our cargo partners will serve as a source of optimism."
In 2015, Changi International Airport handled 1.85 million tonnes of cargo, which shows a 0.5% annual growth compared with 2014.
Image: CAG has announced a package of support measures to boost its cargo sector. Photo: courtesy of Changi Airport Group.