Changi extends rent relief package

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The Civil Aviation Authority of Singapore (CAAS) has announced it will be setting aside S$210m ($119m) over the next three years to help its partners tide over the uncertainty in the aviation industry and to further strengthen Singapore's position as an aviation hub in the region

Under the Air Hub Development Fund (AHDF), effective from January 1, airport tenants will enjoy an extension to the 15% discount on rents introduced on July 1 2001. Changi estimates this will translate into an estimated S$40m ($23m) in savings for retail, cargo and other tenants over the three years. The discount was due to end on December 31 2002.

Airlines will also receive a 15% discount on aircraft landing fees at Changi worth approximately S$90m ($51m). Other programmes within AHDF include financial incentives to attract new airlines and other promotional activities to increase the presence of airlines in Singapore.

Speaking in Parliament today Singapore Transport Minister Yeo Cheow Tong said: "Globally, the aviation industry has yet to fully recover from the economic downturn exacerbated by the September 11 events.  Regionally competition has become more intense with many airports offering new facilities and larger capacities. Against this backdrop of continued uncertainty in the global aviation industry and intensifying airport competition, my Ministry has embarked on a fundamental review of Changi airport's competitive strategy.

What we aim to do is to not just help our partners tide through this difficult period, but more importantly position Singapore for the long haul," he said.