Singapore backs aviation with funds

SINGAPORE, 4 January 2021: Singapore will commit an additional SGD84 million to support aviation companies and workers as they weather the impact of Covid-19, the Civil Aviation Authority of Singapore reported last week.

The aviation sector remains hardest hit as passenger traffic movements at Changi Airport during November 2020 dropped 98% year-on-year.

“Given ongoing border restrictions and the resurgence of Covid-19 in many countries, air travel will not recover soon. It is therefore critical that we maintain our support for the sector to help aviation companies and workers tide through the crisis,” the media statement read.

To help mitigate some of the costs, the government will provide funding for the development, adoption and deployment of innovative technologies and measures to protect airport workers and aircrew from contracting Covid-19, including aircraft and baggage sanitisation systems.

Rebates for fees and charges at Changi Airport will continue. CAAS will waive the fees payable by Singapore-based airlines for their Certificates of Airworthiness, as well as their licence fees payable for providing scheduled air services.

The waiver will apply to fees payable between 1 April 2020 and 31 March 2021. CAAS will also provide 50% rebate for license fees payable for ground handling and catering services at Changi Airport and Seletar Airport from 1 April 2020 to 31 March 2021.

The assistance package will cost about SGD39 million.

Additional support for aviation workers who have taken wage cuts due to a reduction in working hours or have been placed on no-pay leave. Pilots, air traffic controllers and aircraft maintenance engineers who have to pay for their license fees and medical evaluation fees will get a full rebate for fees payable until 31 March 2021.  Around SGD20 million will be spent on workers support.

To encourage companies to be innovative an additional SGD25 million will go into the Aviation Development Fund (ADF) to provide funding support of up to 90% to companies until 31 March 2022.

“Through these measures, we will strengthen the resilience of our companies and workers in the aviation sector as the sector continues to weather the Covid-19 pandemic. It is critical to reviving our air hub and ensuring that we are well-positioned for the recovery of air travel,” CAAS stated.

For more details see:

Annex A – List of additional support measures for the aviation sector
Annex B – Quotes from industry in response to package