The Government will commit $500 million to the OneAviation Resilience Package to support aviation companies and workers over two years.
Transport Minister S. Iswaran made the announcement in Parliament on 9 March 2022.
The package aims to rebuild and reclaim Singapore’s status as an international aviation hub and will enable the sector to strengthen its core capabilities to manage the eventual increase in passenger air travel.
“Our companies are now ramping up recruitment. SIA has started hiring new cabin crew, and SATS is bringing back experienced workers. This is an important effort, but by no means an easy one,” he said.
The OneAviation Resilience Package will be apportioned towards manpower support, cost relief and safeguarding public health support, and industry and workforce transformation support.
Aviation companies will receive wage support through an extension of the Aviation Workforce Retention Grant for six months.
The wage support will cover 10 per cent of wages paid to local employees between April to September 2022, up to a maximum of $4,600 of gross monthly wages per employee.
The Government will also extend rebates on fees and charges payable by aviation stakeholders at Changi Airport and Seletar Airport for six months.
For Airlines
Between 1 April 2022 and 30 September 2022, all scheduled passenger flights (excluding freighters) landing in Singapore will receive a 10 per cent rebate on landing charges.
During that same period, all scheduled passenger flights (excluding freighters) at Changi Airport and Seletar Airport will receive a 60 per cent rebate on parking charges, and a 40 per cent rebate on rental paid for lounges and offices within Changi Airport and Seletar Airport terminal buildings.
Singapore-based carriers will receive a 60 per cent rebate off fees payable for their Certificates of Airworthiness, as well as for providing scheduled air services, between 1 April 2022 and 31 March 2023.
For Ground Handlers
Ground handlers will receive a 40 per cent rebate on rental paid for lounges and offices within Changi Airport and Seletar Airport terminal buildings between 1 April 2022 and 30 September 2022.
They can also expect to receive a 40 per cent rebate off license fees payable for ground handling and catering services at Changi Airport and Seletar Airport during that same period.
For Other Aviation Stakeholders
There will be rebates on fees, charges, and rental for other aviation stakeholders. Changi Airport Group and the Civil Aviation Authority of Singapore will share more details with eligible companies.
Through the Aviation Development Fund (ADF), the Government will provide support for companies’ innovation, productivity, and workforce transformation initiatives.
This is to encourage the sector to invest in long-term industry and workforce transformation efforts, thus ensuring that aviation companies and workers can emerge stronger in the post-COVID world.
Commenting on the package, NTUC Aerospace and Aviation Cluster Chair Ong Hwee Liang said: “We are certainly heartened for the continued Government support measures to further aid the aviation sector. This is especially important as we need to ramp up our core capabilities in anticipation of the recovery in passenger loads from 15 per cent to the expected 50 per cent towards end of 2022.
“We urge our employers in the sector to tap into the ADF to expand workforce transformation to create better jobs, with a better skilled and more productive workforce.”
NTUC Deputy Secretary-General Cham Hui Fong said that aviation workers have gone through a rough pandemic over the last two years.
Although work is picking up, it is still amidst strict safe management measures, coupled with a lean labour force.
She said: “We want to build the capacity and grow the sector again. It is important that business review their operations, redesign their work processes, and simplify their jobs to be less labour dependent.
“NTUC will continue to work with the tripartite partners to push for transformation, enhancement of jobs, and ultimately, improve the wages, welfare and work prospect for our aviation workers.”
