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SINGAPORE – An $ 870 million support package for the worst-hit aviation sector will increase wage subsidies to 50 percent for local workers for another six months, the Ministry of Transport (MOT) said on Wednesday (February 17) .
The Employment Support Plan, which would be expanded, as announced by Deputy Prime Minister Heng Swee Keat in his budget speech on Tuesday, provides companies in the sector with 30 percent wage support from April to June and 10 percent from July to June. September.
The Aviation Workforce Retention Scholarship, which will cost $ 330 million, will increase that to 50 percent of wages paid to Singaporeans and permanent residents from April to September, MOT said.
This means that eligible businesses will receive an additional 20 percent of wages paid to each local employee from April to June, and an additional 40 percent from July to September.
The wage subsidy is capped at up to $ 4,600 gross monthly salary.
Transport Minister Ong Ye Kung pointed out that aviation has been one of the sectors most affected during the pandemic, “if not the most affected”, as Changi airport and its stakeholders lost 97.5% of Your clients.
At the end of January this year, total passenger movements in Changi accounted for only about 2% of pre-Covid-19 levels.
“However, for a city-state like Singapore, the air hub is essential to connect us with the rest of the world and remains our lifeblood,” said Ong. “This support will help Changi overcome the crisis, while we explore ways to reopen the borders safely.”
In his budget speech, Heng emphasized the need to position the aviation sector for recovery as part of efforts to deepen Singapore’s position as a global node for Asia.
The remaining $ 540 million from OneAviation’s support package will go toward cost reduction, MOT said.
This includes extending existing discounts on fares and charges at the Changi and Seletar airports for one more year. The reduction in fees to be paid by pilots, air traffic controllers and aircraft maintenance engineers will also be extended for another year.
“The package will allow aviation companies to preserve core capabilities and overcome the crisis, and preserve Singapore’s position as a post-Covid-19 aviation hub,” MOT said.
Funding for the sector is included in the $ 11 billion Covid-19 resilience package announced in the budget speech.
MOT said that many aviation companies around the world had reduced their workforce over the past year, noting that Singapore companies did so “in a very judicious way, mainly affecting foreign workforces.”
“We must avoid further reductions in the aviation workforce so that companies do not lose their core local capabilities, which have taken many years to develop. If the sector weakens its capabilities, this will hamper its resilience,” the ministry added.
Companies whose activities are mainly based in Changi Airport will receive the Aviation Workforce Retention Grant. These companies in the aviation sector are already receiving support from the Level 1 Employment Support Plan.
Companies do not need to apply for the grant, and the Singapore Civil Aviation Authority will notify eligible companies of the amount of support they will receive.
They will receive two payments under the grant. Support for salaries paid from April to June will be given in September and in December for salaries paid from July to September.
In addition to salary support, companies in the air transport sector will continue to receive training support, MOT said.
This will be done through the Enhanced Training Support Program, which has been extended through December.
Singapore-based airlines will also receive support to convert some of their existing pilots to operate other types of aircraft, to provide an adequate pool of trained pilots in eventual recovery, MOT added.
Changi Airport Group CEO Lee Seow Hiang said that the aviation support package would not only provide further financial relief, but would also help strengthen the capabilities of its workforce and promote new ways to provide safe travel experiences. business and pleasure trips.
He said air travel demand is unlikely to return to pre-Covid-19 levels anytime soon despite the promise of Covid-19 vaccines. Many countries around the world continue to maintain strict border controls, he noted.
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