S$130m to keep airlines flying in

Singapore - The Civil Aviation Authority of Singapore (CAAS) is extending the existing Air Hub Development Fund (AHDF) with an expanded S$130 million budget.

The expanded AHDF package, which was originally due to expire on 31 December 2008, will represent a 30% increase over the S$100 million annual budget under the AHDF for 2006-2008. 

Under the new package, airlines are expected to benefit from enhanced incentives such as a 25% landing fee rebate which will be given to airlines operating flights at Singapore Changi Airport and Seletar Airport.

The rebate is a one-time economic relief measure for 2009 which is 10% higher than the existing 15% rebate that airlines currently receive.

CAAS said it will continue to offer the 15% across-the-board rental rebate for tenants of offices, airline lounges and warehouses at Changi Airport and Seletar Airport, to aid other airport business partners like ground handlers, airport concessionaires and freight forwarders.

Part of the AHDF extension package would support the various ongoing incentive schemes to encourage airlines to look for growth opportunities to extend their network and capacity or drive traffic to and through Changi Airport.

"CAAS recognises the tough operating environment that airlines and airport partners are currently operating under," said Lim Kim Choon, director-general and CEO of CAAS. "By extending the Air Hub Development Fund at an expanded budget of S$130 million, CAAS hopes to help them tide over the downturn."