S$500m in aviation support as Singapore aims to get Changi passenger volume back to 50% of pre-Covid level this year

SINGAPORE is committing another S$500 million to tide the beleaguered aviation sector over its gradual recovery from the pandemic's economic impact, with relief in the form of continued wage support, fee rebates and funds to encourage transformation.

This is as Singapore aims to restore Changi Airport's passenger volumes to at least 50 per cent of pre-Covid levels in 2022, Minister for Transport S Iswaran announced at the ministry's Committee of Supply debate on Wednesday (Mar 9).

The OneAviation Resilience Package includes S$60 million of wage support through the aviation workforce retention grant, from April to September 2022. This covers 10 per cent of wages paid to local employees, up to a cap of S$4,600 of gross monthly wages per employee.

Another S$390 million is for cost relief and support for public health safeguards, with the rebates on fees and charges payable by aviation stakeholders at Changi Airport and Seletar Airport to be extended for six months. The government will review whether there is a need for this support to continue, based on the extent of air travel recovery.

The cost of implementing public health and safe management measures at the airport will continue to be defrayed to ensure safe air travel and protect airport workers and users. The Civil Aviation Authority of Singapore and the Changi Airport Group will share details with eligible players.

To encourage companies to invest in industry transformation efforts such as the use of autonomous and digital technologies, S$50 million has been set aside for the Aviation Development Fund.

Iswaran stated that the cost relief and other financial assistance will ensure that the aviation sector has the capabilities and capacity to capture the recovery as well as transform itself to emerge stronger from the pandemic.

He noted that while Changi Airport served more passengers in 2021 - recovering to about 15 per cent of pre-pandemic levels, up from 3 per cent the year before - this was still significantly below the levels before the pandemic hit.

But barring unexpected setbacks, the aviation sector should be able to make further progress on its recovery journey in 2022 as global border restrictions continue to ease, he said. "We must sustain this momentum. Other aviation hubs, like Dubai, Qatar and Istanbul, are already at up to 70 per cent of their pre-Covid international passenger traffic... We aim to restore Changi's passenger volumes to be at least 50 per cent of pre-Covid levels in 2022."

Reiterating Changi Airport's importance as an airhub, he said: "The OneAviation Resilience Package is an affirmation of the government's commitment and confidence in the long-term growth and success of our aviation hub."

Meanwhile, the ministry is closely monitoring the developing Russia-Ukraine conflict with its aviation partners and "will mount an appropriate response should the need arise".