Airlines to GAIN at Changi from Long-Haul and Transfer Traffic Boost

Following the announcement of the Growth and Assistance Incentive (GAIN) programme in June, Changi Airport Group has now provided additional details of landing fee rebates for long-haul flights and incentives for airlines to grow transfer traffic through Changi Airport. These measures designed to strengthen the Singapore air hub, would amount to as much as S$50 million over the next 19 months for airlines operating at Changi International Airport, it said.

“The underlying fundamentals of the Asia Pacific aviation market remain strong and attractive. We are, however, aware that airlines could be facing yield and cost pressures in the present environment,” said Lim Ching Kiat, senior vice president for market development, Changi Airport Group.

In its role as an active and committed partner, Changi Airport Group is rolling out these additional short-term measures to help airlines during this period. The new incentives are targeted at long-haul flights and transfer traffic, two important segments of the hub’s air traffic mix and a key part of Changi Airport’s global connectivity.

To help support airlines’ long-haul services, Changi Airport Group will offer airlines a 50 per cent rebate on landing fees for all non-stop long-haul passenger flights of longer than nine hours flying from September 1, 2014 to 31 March 2016.

“Changi Airport Group recognises that airlines commit significant investment into their long haul flights, hence we will be offering landing rebates on these flights to help share airlines’ costs,” said Lim Ching Kiat.

The airport operator is also launching next month a Gateway Incentive to motivate airlines to grow their transit and transfer traffic at Changi Airport. All airlines operating at Changi Airport will receive a S$10 incentive for every incremental departing transit/transfer passenger handled. The 18-month scheme, effective October 1, 2014, will also include passengers carried by foreign airlines interlining at Changi. The Gateway Incentive will encourage airlines to adjust their pricing and network revenue management models to meet growth targets and benefit from the scheme.

“Transfer traffic is another important component of our air traffic which helps bolster Changi Airport’s position as a premier air hub in Asia. Therefore, we will be rolling out incentives to reward our airline partners for growing transfer traffic,” said Lim Ching Kiat.

These incentives are in addition to the extension of the popular Changi Transit Programme which offers attractive vouchers to passengers using Changi as their transfer point to March 31, 2015. This was first introduced in October 2012 and offers passengers travelling on Singapore Airlines or SilkAir flights can continue to redeem up to S$40 in Changi Dollar Vouchers for use during their time at the airport.

According to a Changi Airport Group executive, more than one million passengers have already enjoyed the benefits of this programme to date, with travellers from the key transfer markets – Australia, China, India and Indonesia – topping the list of voucher recipients.

As previously announced, under the GAIN programme, Changi Airport Group is also offering all airlines operating at Changi International Airport across-the-board rebates of 50 per cent on aircraft parking fees and 15 per cent on aerobridge fees between July 1, 2014 and June 30, 2015.

Our analysis, below, shows Singapore’s Changi International Airport has seen a notable growth in departure capacity over the past ten years with available seats from the hub growing 58.4 per cent from 22.88 million in 2004 to 36.24 in 2013, an average annual growth rate of 6.5 per cent. The strongest growth was recorded in the first three years of this decade with increases of 8.1 per cent in 2010, 10.5 per cent in 2011 and 8.4 per cent in 2012. Based on current published flight schedules this will rise a further 0.5 per cent in 2014, versus last year.

Data provided by