Changi Airport Group commits S$15 million to support air cargo sector

it has put in place a S$15-million cargo support package under the Changi Airport 
Growth Initiative (CAGi) to support the air cargo sector for the new financial year 
starting 1 April 2012. The package includes a 20% landing fee rebate at Singapore 
Changi Airport for all freighter flights, partnership funding support for new cargo 
development initiatives, as well as up to 20% rental rebates for cargo tenants leasing 
CAG cargo facilities at the Changi Airfreight Centre. 
While passenger traffic at Changi has been growing strongly over the past two years, 
the air cargo sector has been facing strong headwinds due to the ongoing economic 
slowdown in the US and Europe, coupled with persistently high jet fuel prices. The 
International Air Transport Association has reported that the global air cargo market 
contracted 0.7% in 2011. Asia Pacific, the largest international air cargo market with 
40% market share, declined the most by 4.8%. Although airfreight movements at 
Changi Airport rose by 2.8% to 1.87 million tonnes last year, it has only recovered to 
2008 levels1. 

Under the CAGi scheme, CAG will also extend a 5% across-the-board rebate on 
landing fees for all passenger airlines at Changi Airport2 in the new financial year. 
Other CAGi incentives remain in place to support existing airlines’ traffic growth at 
Changi Airport and the launch of services to new destinations, as well as to attract new airlines. These rebates and incentives moderate operating costs for airlines at 
Changi Airport which together operate more than 6,100 flights each week. 
CAG will also continue to work with airlines to drive traffic demand to their key 
markets through joint marketing activities targeting both trade partners as well as 
passengers. For example, CAG twice partnered airlines, travel agents and the 
Japan National Tourism Organisation to promote travel to Japan following the 
earthquake which hit the country last March. On-going at the moment is a CAGsponsored 
campaign with airlines and travel agents to boost travel demand for the 
new flights between Singapore and Chinese secondary cities such as Changsha and 
Zhengzhou. 
Said Mr Lee Seow Hiang, CAG’s Chief Executive Officer, “Changi Airport could not 
have achieved its leading position as a key international air hub without the support 
of our valued airline and cargo partners through the years. We are hence fully 
committed to strengthening our relationship with them through win-win partnerships 
and support programmes that will enable our partners and us to overcome the 
challenges ahead together and sustain our mutual growth for the long-term.” 

1 Changi Airport recorded its highest air freight movements in 2006 when 1.91 million tonnes of air 
cargo passed through the airport. 
2 This 5% rebate is included in the 20% rebate on landing fees for freighter flights.