Friday, June 14, 2024
Changi’s $79m cost reduction plan to boost carriers

Changi’s $79m cost reduction plan to boost carriers

Changi Airport is to spend 100 million Singapore dollars ($79 million) lowering costs for airlines and improving operational efficiencies to make Singapore the gateway to and from the Asia-Pacific region.

From 1 July to 30 June 2015 Changi Airport Group (CAG) will introduce a 50 per cent rebate on aircraft parking fees and 15 per cent on aerobridge fees, subject to regularity approval, as part of its Growth and Assistance Incentive (GAIN).The chief executive officer of CAG, Lee Seow Hiang says: “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.” Incentives and reward programmes beyond this year will be calibrated depending on  traffic patterns and the operating conditions. CAG is making efforts to raise staff productivity and will be committing funds that reduce manpower requirements and optimise the efficiency of their operations. Changi has suffered from a strong Singapore dollar compared to its neighbours currencies, including India and Indonesia. Political instability in Thailand and weaker demand from China has also resulted in a slowdown.

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