Lim Ching Kiat, senior vice president for market development, CAG, 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. As an active and committed partner, CAG 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 our air traffic. Long-haul services are a key part of Changi Airports global connectivity. CAG recognises that airlines commit significant investment into their long haul flights, hence CAG will be offering landing rebates on these flights to help share airlines costs.
Transfer traffic is another important component of our air traffic which helps bolster Changi Airports position as a premier air hub in Asia. Therefore, we will be rolling out incentives to reward our airline partners for growing transfer traffic. This is on top of the extension of our popular Changi Transit Programme which offers attractive vouchers to passengers using Changi as their transfer point.
To help support airlines long-haul services, CAG will offer airlines a 50 per cent rebate on landing fees for all non-stop long-haul passenger flights from September 1, 2014 to 31 March 2016.
In addition, CAG is 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 is effective October 1, 2014 and 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.