Changi Airport to Scale Back Operator’s Rebates

Over the last year Singapore’s Changi International Airport has been offering its airline operators a 25% rebate for its airport fees, but it looks like this will be slowly changed to a performance based system.

In an effort to persuade carriers to retain their air services to Singapore, Changi International Airport was one of the first major gateway hubs to lower airport fees for the year.

However last week, the airport announced that it will be changing its incentive program to reward the carriers who contribute most to growth.

Seow Hiang Lee, Changi Airport Group CEO said: “While the priority of the [rebates] in the past year was to provide urgent across-the-board cost relief, the key thrust… is to increasingly shift towards promoting growth – for both Changi Airport, as well as our partners.”

Going by the name of Changi Airport Growth Initiative (CAGi) the new scheme will scale back the rebate program slowly, with a 15% landing fee rebate for the first six months of 2010 and a 10% rebate for the second half of next year.

“With CAGi, we will adopt a far more customised approach by using an effective and optimum mix of targeted and performance-based incentives,” continues Mr Lee.
Changi says the “one-size-fit-all” is not effective for its needs to grow, and will begin to work individually with partners in order to encourage growth.