The Ministry of Transport (MOT) has announced an $870 million OneAviation Support Package for the ailing aviation sector on 17 February 2021.
The Government hopes that the package will enable aviation companies to preserve their core capabilities, tide them through the crisis, and preserve Singapore’s position as an aviation hub.
Transport Minister Ong Ye Kung said that the sector is one of the hardest-hit sectors of the COVID-19 pandemic.
Changi Airport Group and its stakeholders have lost 97.5 per cent of its customers since the beginning of the pandemic.
“Yet for a city-state like Singapore, the air hub is essential to connect us with the rest of the world and continues to be our lifeblood. This support will help Changi tide through the crisis, while we explore ways to reopen borders safely,” he said.
Mr Ong will be speaking more on the sector and the package during the Committee of Supply debate later this month.
The OneAviation Support Package consists of two key components. Some $330 million will go towards enhancing manpower support, while $540 million will be set aside as cost relief.
Manpower Support
As announced by Deputy Prime Minister Heng Swee Keat on 16 February 2021, aviation companies will receive 30 per cent support for wages paid from April to June 2021, and 10 per cent support for wages paid from July to September 2021 under the Jobs Support Scheme (JSS).
The OneAviation Support Package will further enhance wage support through an Aviation Workforce Retention Grant (AWRG).
Under the AWRG, companies will receive an additional 20 per cent of the first $4,600 of gross monthly wages paid to each local employee from April to June 2021. This is on top of the 30 per cent support they will receive under the JSS.
They will also receive an additional 40 per cent of the first $4,600 of gross monthly wages paid to each local employee from July to September 2021 – also on top of the 10 per cent support they will receive under the JSS.
On the AWRG, NTUC Deputy Secretary-General Cham Hui Fong said that the enhancement to JSS will be very critical in savings many jobs for the sector.
She said: “The aviation sector is greatly stressed, and the support will be a relief to the companies and workers. It will be timely to build and keep the core capabilities of the workers which are important for us to grow our aviation hub.
“Workers we spoke with are deeply appreciative and we look forward to the details to better support the companies and the workers.”
In addition to wage support, companies in the Air Transport sector will continue to receive training support through the Enhanced Training Support Programme, which has been extended until December 2021.
Cost Relief
The OneAviation Support Package will also extend existing rebates on fees at Changi and Seletar Airport for another year.
The rebates will include fees such as landing and parking fees for airlines, rental for lounges and offices, and licence fees for ground handling and catering services.
The rebate on fees payable by pilots, air traffic controllers and aircraft maintenance engineers – such as medical evaluation fees – will also be extended for another year.
