Singapore freezes fee hike for aviation firms

A Singapore Airlines plane sits on the tarmac at Singapore’s Changi Airport March 11, 2020. — Reuters pic
A Singapore Airlines plane sits on the tarmac at Singapore’s Changi Airport March 11, 2020. — Reuters pic

SINGAPORE, July 16 — The Civil Aviation Authority of Singapore (CAAS) will freeze scheduled fee increases from April 1, 2020 to March 31, 2021, aiming at helping to mitigate the significant impact of the Covid-19 pandemic on the aviation industry.

In a statement today, CAAS said the freeze will apply to three type of fees, including for inspection, testing or evaluation during the certification or approval process for the design, production or distribution of aircraft components or aircraft materials.

The other types are fees for safety inspections during the certification or approval process for the maintenance of aircraft or aircraft components; and fees for renewal of an approval or certificate for inspection, overhaul, repair, replacement and modification of aircraft or aircraft components.

The approval or certificate must have been issued before Oct 31, 2017.

CAAS said companies which have already paid the stated fees at increased rates will have the increments refunded to them via their original payment mode.

According to the authority, about 170 aviation companies will save around S$200,000 (RM613,053) in total.

CAAS said the freeze is on top of earlier help measures announced for the aviation sector to complement the government’s Enhanced Aviation Support Package.

The package includes a 50 per cent rebate on regulatory fees for new and renewed Certificates of Airworthiness, estimated to save Singapore carriers about S$6 million in total.

Under the package, Singapore carriers and the airport operator can defer payment of certain fees by up to one year, amounting to some S$140 million worth of fees in total.

The Airport Development Levy (ADL), which is payable by passengers departing from or connecting through Singapore Changi Airport, is also waived for passengers whose airline tickets are issued between April 13, 2020 and March 31, 2021, both dates inclusive, for travel over the same period.

The ADL was introduced on July 1, 2018 to help fund airport developments, including the new Terminal 5, and related infrastructure at Changi East.

Passengers beginning their trips from Changi Airport pay a rate of S$10.80, while those starting their trips elsewhere and connecting through Changi Airport pay a rate of S$3.00. — Bernama

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