1. To boost the recovery of the aviation sector as air travel picks up, the Government will commit S$500 million to support aviation companies and workers in Financial Year 22/23. The OneAviation Resilience Package will enable the sector to bolster core capabilities and ramp up its capacity to manage increased traveller volumes, in order to rebuild and reclaim our status as an international aviation hub.
2. The aviation sector remains among the hardest hit sectors by the COVID-19 pandemic. While passenger traffic at Changi Airport has improved from 3% at the beginning of 2021 to about 15% of pre-COVID levels by the end of the year with the launch of the Vaccinated Travel Lanes (VTLs), it is still significantly below pre-pandemic levels. Barring unexpected setbacks, further aviation recovery is anticipated in 2022, as border restrictions globally are progressively eased. We will provide funding to the sector to ensure that it has the capabilities and capacity to capture the recovery, as well as transform itself to emerge stronger from the crisis.
3. The OneAviation Resilience Package comprises three key components, namely (i) manpower support; (ii) cost relief and support for public health safeguards; and (iii) industry and workforce transformation support.
4. Manpower support ($60 million).
This aims to help companies bolster core capabilities and rebuild the sector’s workforce. Aviation companies will receive wage support via an extension of the Aviation Workforce Retention Grant for six months, covering 10% of wages paid to local employees from April to September 2022 (up to a cap of S$4,600 of gross monthly wages per employee).
5. Cost relief and support for public health safeguards (S$390 million).
We will extend rebates on fees and charges payable by aviation stakeholders at Changi Airport and Seletar Airport for six months in the first instance. We will review the need for further support, based on the extent of air travel recovery. Please refer to Annex A for a list of the rebates on fees and charges. We will also continue to defray the cost of implementing public health and safe management measures at the airport. This will enable safe air travel and protect our aviation workers and the wider community.
6. Industry and workforce transformation support ($50 million).
We will provide support for companies’ innovation and productivity, and workforce transformation initiatives through the Aviation Development Fund (ADF). This will encourage the sector to invest in longer-term industry and workforce transformation efforts, so that our aviation companies and workers can emerge stronger in the post-pandemic world. Examples of such efforts include the deployment of autonomous and digital technologies to optimise airport operations and enhance manpower productivity, as well as job redesign initiatives to upskill and provide quality jobs in the aviation sector.
7. Minister for Transport and Minister-in-charge of Trade Relations Mr S. Iswaran said, “The aviation sector plays a crucial role in ensuring Singapore’s position as a global trading and business hub. It supports economic linkages and enables people-to-people flows with the rest of the world. Therefore, it is critical that we continue to support companies and workers in the sector, so that we can emerge stronger, and reclaim Changi’s status as an international aviation hub. 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.”
Annex A - OneAviation Resilience Package - Extension of Cost Relief for Aviation Companies