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Changi Airport strives to help aviation

Singapore Changi Airport

Since its inception in 1981, Singapore Changi Airport has established its mark as one of the world’s best airports and leading aviation hubs. As a major player in the fast-paced, competitive and demanding aviation landscape, Changi Airport understands the aviation industry intimately, and is constantly driven to innovate and expand its capabilities to suit its airline partners’ and other stakeholders’ business needs.

The Leading Aviation Gateway to Asia Pacific

Singapore is an excellent springboard for travel around the region. Within a seven-hour radius, Changi Airport has the potential to reach 2.8 billion people living in Southeast Asia, Australia, China and India. With some 84 airlines flying to and from more than 188 cities in over 60 countries worldwide, operating more than 4,500 flights per week, Changi Airport remains well-positioned as the international gateway to Asia Pacific, with superior connectivity to the Southwest Pacific and Southeast Asia.

Changi Airport’s strong performance underscores this immense potential. Despite the economic slowdown in the second half of 2008, Singapore Changi Airport handled a higher volume of passenger traffic, with 37.7 million passenger movements handled in 2008, a 2.7 per cent increase from 2007. Although the softening of travel demand has seen traffic slowdown for some markets as airline partners rationalise their networks at Changi Airport, Southeast Asia continues to register strong growth for Changi in 2008. Among the top 15 markets by passenger traffic, the sectors of Indonesia, Malaysia, the Philippines and Vietnam saw growth of 6.5 per cent , 9.4 per cent , 11.9 per cent and 19.4 per cent respectively.

Changi Airport believes in charting the way forward even with such challenging times ahead. For 2009, Changi Airport has recognised Southeast Asia as one of the potential markets with room for growth, and is continually engaging airline partners to tap into this burgeoning traffic, whilst supporting them for their network and traffic growth at Changi.

Strong Support for Airlines’ Operations

Changi Airport is committed to provide strong support for airline operations. Always striving to maintain a collaborative and consultative relationship with its airline partners, Changi Airport has a dedicated team, who are tasked with studying trends and developments within the aviation industry to identify possible growth opportunities, and engaging its airlines on various traffic development initiatives to ensure the success of their operations at Changi.

Cognizant that the current global economic downturn presents great challenges to the operating environment of airlines and airport partners, Changi Airport has set aside S$200 million (approximately US$129 million) in 2009 to help alleviate the financial burden of these stakeholders in this difficult economic climate. This comprises a S$130 million (approximately US$84 million) Air Hub Development Fund (AHDF) - recently extended by another year until 31 December 2009, a 30 per cent increase over the S$100 million (approximately US$65 million) annual budget under the AHDF for 2006-2008 - as well as a S$63 million (approximately US$40 million) relief package consisting of rental rebates and a newly set-up Promotions Development Fund for retail, food and beverage and service concessionaires at Changi Airport.

Under the extended AHDF and other cost relief packages, airline partners are able to enjoy a 25 per cent landing fee rebate for all operating flights at Changi Airport, which is 10 per cent points higher than the existing 15 per cent rebate that airlines had enjoyed in previous years. Tenants of offices, airline lounges and warehouses at Changi Airport enjoy 20 per cent across-the-board rental rebates for 2009, an additional 5 per cent in rental rebate compared to previous years. Recognising the need to drive traffic growth in spite of the difficult economic climate, part of the AHDF extension also supports the various continuing incentive schemes that Changi Airport has in place to encourage airlines to seek opportunities to expand their network and capacity or to drive traffic to and through Changi Airport.

Keeping Costs Competitive

Striving to provide a competitive environment for airline partners, Changi Airport has one of the lowest operating costs in Asia today. Key principles guiding the management of commercial activities include optimising returns from commercial facilities, growing non-aeronautical revenue, and reducing reliance on aeronautical revenue, thereby keeping charges to airlines low.

In addition to providing monetary assistance to airlines through rebates and incentives, Changi Airport has also implemented initiatives on the air traffic management front to help airlines reduce their operating costs.

Most notably, Changi Airport has worked with the International Civil Aviation Organisation to implement a regional air traffic management system to regulate Europe-bound air traffic over the Bay of Bengal. This would result in a reduction of air traffic congestion, which would in turn reduce delays and operating costs for airlines. Furthermore, the reduction of longitudinal separation between aircraft operating along the Singapore and China/Hong Kong routes allows more aircraft to operate at the same flight level at a specific time. This helps to increase the capacity and efficiency on the usage of airspace, and at the same time, reduce flight delays. Such initiatives have directly helped airlines reduce fuel burn, and resulted in estimated fuel savings of over S$45 million (approximately US$29 million) per annum for airlines.

An Ideal Environment for Airline Operational Needs

Ample Capacity for Growth

Recognising that airlines and other members of the airport community are integral to Changi Airport’s success as an aviation hub, Changi is committed to creating an environment conducive for airline partners that would support their operations and foster growth.

To provide ample capacity to cater to airlines’ growth, Changi Airport adopts a proactive policy of building in anticipation of future demands of traffic growth, as well as upgrading existing facilities to maintain its competitive edge as an attractive operating environment for airlines.

From a single terminal in its formative years, Changi Airport now operates four terminals – Terminals 1, 2 and 3, as well as the Budget Terminal. The latest addition to Changi Airport, Terminal 3, commenced operations on 9 January 2008 and increased Changi Airport’s passenger handling capacity by 22 million passengers per annum. With a total handling capability of 70 million passengers per annum, Changi Airport is well-positioned to serve Singapore’s future aviation needs well into the future.

With upgrading work for Terminal 2 completed in 2006, Changi Airport has since commenced upgrading work on Terminal 1 in May 2008, which is scheduled to be completed in the third quarter of 2011. The upgraded Terminal 1 will see the offering of more facilities and services, to enhance passenger experience at the terminal.

More Choice of Facilities to Suit Different Operational Models

Within Changi Airport are different facilities to suit the different operational requirements of airlines. Launched in 2006, the Budget Terminal was specifically designed for airlines whose business models focus on fewer frills while still maintaining high operational efficiency. The Budget Terminal is being expanded to increase its handling capacity from 2.7 million passengers per annum to 7 million in anticipation of future traffic growth.

High Efficiency and Service Performance

Changi Airport strives to maintain an integrated and effective airport system by setting rigorous performance standards for each and every crucial operation function and through close cooperation with all airport agencies to ensure seamless service delivery. At Changi Airport, airlines are always assured of high standards of service and operational efficiency.

Singapore Changi Airport believes that a collaborative and consultative approach with its airline partners is its winning formula, securing the airport more than 300 prestigious awards over the years, making it the most awarded airport in the world. One of the most recognised is the International Air Transport Association (IATA)’s Eagle Award which honours airports for outstanding performance in customer satisfaction, cost efficiency and continuous improvement. These accolades are a testament to Changi Airport being a world-class airport that is committed to grow with their airline partners, right here in the heart of Asia.

For more information please visit www.changiairport.com

 

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