"The industry appreciates the efforts of CAG and CAAS in suspending the planned increase in aviation related charges for 2020 and 2021 when COVID-19 brought air travel to a standstill. The pause, together with financial support packages provided by the Singapore government, contributed positively to helping the airline industry survive the most difficult period in its history," commented Philip Goh, IATA’s Regional Vice President for Asia Pacific.
"The Asia Pacific airline industry is still in the early stages of recovery from the COVID-19 slump, and ideally would have preferred that the pause of the planned increase in charges is maintained. In July 2022, international passenger demand in the region was only about 36% of 2019 levels, lagging behind other regions which are already seeing more than 70% of 2019 levels. Any additional cost burden at this stage will impact airlines financial position negatively. From that perspective, while we understand the cost pressures facing infrastructure providers and regulators, the timing of the reinstatement of these increases (to what was originally planned) is less than ideal.
Aviation hubs like Singapore must ensure they remain cost-efficient in order to maintain their attractiveness to airline operators. We hope the next regulatory review of these charges in 2024 will keep in mind a need for moderation and improvements when considering any further increase in aviation charges."
