Jan-Mar/2013 - Singapore Changi Airport · Jan-Mar/2013 Issue 12 A new milestone for Changi, as it looks ahead ... Passenger traffic at Changi Airport rose 10.1% in the first 11 months

Singapore Changi Airport Air Hub News

Jan-Mar/2013Issue 12

A new milestone for Changi,

as it looks ahead

FedEx facility at Air Cargo Express Hub

takes off

2 — CHANGI INSIGHT Issue 12

INGAPORE FOCUSS

Editorial tEam

Donald Tan, Vice President, Airline Development

James Fong, Assistant Vice President, Airline Development

Ng Koon Ling, Senior Manager, Corporate and Marketing Communications

Phau Hui Hoon, Senior Manager, Airline Development

Damon Wong, Senior Manager, Airline Development

Jaisey Yip, Senior Manager, Airline Development

Liew Zhong Yao, Senior Manager, Air Hub Strategy

Ang Ngah Bee, Senior Manager, Cargo & Logistics Development

Alicia Chen, Manager, Airline Development

Amy Tan, Manager, Airline Development

Toh Ern Chong, Manager, Airline Development

Neo Wei Shan, Assistant Manager, Airline Development

Tan Ping Hong, Assistant Manager, Airline Development

Sim Pei Wen, Assistant Manager, Passenger Development

Changi Insight is published quarterly.

Design by Meta Fusion Pte Ltd.

MICA (P) 167/05/2012

For enquiries on aviation business opportunities with Changi Airport,

please contact [email protected]

www.changiairportgroup.com

CONTENTS

04 FEATURE STORYA new milestone for Changi, as it looks ahead

NETWORK GROWTHLatest updates on Changi Airport’snetwork and services

06 CHANGI STATISTICSPassenger and airfreight data

08 FIRST PERSONMr Nicodemus Lampe, Vice President (Asia Region), Garuda Indonesia

09

10

11

AIR CARGOFedEx facility at Air Cargo Express Hub takes off

EVENTS

14 CHANGI NEWS

Marine Life Park

Marine Life Park (MLP), the world’s largest oceanarium housing more than 100,000 marine animals of over 800 species in 60 million litres of water, opened its doors to visitors on 22 November 2012. Located at Resorts World Sentosa, MLP is the integrated resort’s second anchor attraction and targets to bring in 16 million visitors in 2013. The MLP inauguration caps a list of 12 major launches in the 49-hectare integrated resort’s three-year history. MLP comprises two ticketed attractions, giving guests the option of either getting wet or staying dry. Adventure Cove Waterpark is the region’s only water park with marine life elements. Visitors can choose to get their adrenaline pumping with six water slides, including the region’s first hydro-magnetic coaster – Riptide Rocket; chill out at the Bluwater Bay wave pool; or relax while tubing along the Adventure River. One of the world’s longest lazy-rivers, the 620-metre river meanders through 14 themed scenes of tropical jungles, grottos, a surround aquarium and more. The waterpark is also the only of its kind in the region to have marine life. Guests will have the opportunity to snorkel among thousands of fish at the colourful Rainbow Reef, or to sign up for ray-feeding and interaction programmes with sharks and dolphins, which will be introduced later in the year. The second attraction, Southeast Asia Aquarium (S.E.A. Aquarium), is the world’s biggest aquarium, featuring animals ranging from magnificent sharks to rarely sighted fish and dolphins, allowing visitors to explore the awe-inspiring universe of life in the ocean. The centrepiece of the Aquarium is the Open Ocean habitat, seen through the world’s largest viewing panel, at 36 metres wide by 8.3 metres tall. Guests viewing the habitat could experience the feeling of being on a cavernous ocean floor.

Source: rwsentosa.com

CHANGI INSIGHT Issue 12 — 3

river Safari River Safari will become Asia’s first and only river-themed wildlife park when it opens in early 2013. The newest addition to Wildlife Reserves Singapore’s portfolio of award-winning parks, River Safari spreads over 12 hectares of land and is built at a cost of $160 million. The park is expected to attract 820,000 visitors annually. Inspired by eight great rivers of the world such as Amazon, Nile, Mekong and Mississippi, River Safari will transport visitors to 10 different river ecosystems offering them a peek at the exotic freshwater flora and fauna as well as animals. There will be a display of more than 150 plant species, 300 species of animals and over 5,000 individual animal specimens, including one of the world’s largest collection of freshwater aquatic animals. Rarely seen animals such as the endangered beavers and giant salamander will also be showcased. This is in line with River Safari’s role in the global captive breeding programme which ensures the long-term survival of endangered and threatened species such as the manatee and the giant river otter. The key highlight will be a pair of giant pandas, loaned to Singapore for 10 years to commemorate two decades of close diplomatic relations between China and Singapore. The pandas will live in a special climate-controlled exhibit along the ‘Yangtze River’.

Source: Wildlife Reserves Singapore

CHRISTMAS in the troPiCS As the much-loved “Christmas in the Tropics” returned from 17 November 2012 to 6 January 2013 with a myriad of interactive fringe activities, attractive retail promotions and exciting events, visitors to Singapore received a sensory experience. The Singapore Christmas festive season has been gaining momentum and popularity, with 6.57 million people visiting both Orchard Road and Marina Bay during the festive season last year. The extravaganza has also gained a measure of international recognition, with Orchard Road, Singapore’s main shopping strip, being awarded the Merit Award for Events and Programming by the International Downtown Association for its Christmas decorations in 2011. The Orchard Road light-up itself was also ranked among the Top 10 Christmas Markets of the World in 2011 by Lonely Planet (UK), and one of the World’s Best Holiday Lights: 10 Decorated Cities in 2010 by Frommer’s (US).

Source: Singapore Tourism Board


ASIA – AvIAtION’S NExt ENGINE OF GROwtH

There is little doubt that the world’s economic centre of gravity is shifting to Asia. Against this backdrop, the long-term potential of aviation in Asia shines brightly. Airports Council International2 has forecast that by 2031, “Asian airports will handle three times more aircraft movements than in 2011” and by the same year, “over 41% of global passengers will travel in Asia Pacific.” Owing to rising demand for both business and leisure travel, Asia’s aviation markets have been enjoying substantial growth over the past decade, with many routes growing by double digits. These include India-Australia, intra-ASEAN and China-Southeast Asia. At Changi Airport, many of the new routes launched in 2012 reflect the strong travel demand within Asia, such as to Padang (Indonesia), Wuhan (China), Ilo Ilo (Philippines) and Visakhapatnam (India). The rise of the middle-income group in China, India and Indonesia means that these countries will become the most important outbound travel markets over the next 10 to 20 years. Asian hub carriers with excellent connectivity to these countries look well positioned to leverage the emerging traffic flows. At the same time, much of the growth in Asia Pacific has been driven by low-cost carriers (LCCs) through rapid expansion of routes, development of new operating bases and market cultivation with attractive fares that put air travel within the reach of many more people. This can be clearly seen in airlines such as AirAsia, Jetstar, Tiger Airways and Lion Air. They are no longer the small start-ups from a decade ago. These carriers have spread their wings by setting up multiple bases in the Asia Pacific region and capturing share in lucrative markets previously accessible only to legacy carriers. Today, it is no longer inconceivable for full-service carriers (FSCs) to partner LCCs as any disparity in airline product offering is more than compensated by gains in network connectivity and enhanced access to markets, especially secondary cities. To remain competitive, many FSCs in the region have set up low cost subsidiaries with notable examples being SIA’s Tiger Airways and Scoot, as well as Qantas’ Jetstar Group. Even in Japan, long known for its reluctance to attempt the low-cost sector, All Nippon Airways has set up its first LCC - Peach Aviation - in early 2011. More recently in August 2012, a joint venture between Air Nippon Airways and AirAsia saw the launch of another new budget player, AirAsia Japan. At the same time, Japan Airlines also forged a similar partnership with Jetstar to set up Jetstar Japan. Such a multi-brand, multi-segment strategy may be construed as a defensive play, but it is also an excellent platform for carriers to participate in the future growth of fast expanding market segments.

EAtuRE STORYF

Changi Airport announced in December that it would end 2012 with more than 50 million passenger movements, a new milestone in

the airport’s 31-year history. The achievement broke the record of 46.5 million passenger movements registered in 2011. Passenger traffic at Changi Airport rose 10.1% in the first 11 months of 2012, building on the 10.7% rise for the whole of 2011. Similarly, aircraft movements for 2012 will surpass the 301,700 registered in 2011, following a growth of 7.9% for the 11-month period. The strong growth at Changi Airport was achieved despite a sluggish global economy and continuing uncertainty in the aviation sector. Positive contributory factors included a widening array of low-cost travel options and rising demand for travel within Asia. Travel to and from markets like Southeast Asia, Northeast Asia and South Asia has enjoyed healthy to strong growth in the past two years. This was made possible, in part, through Changi Airport Group’s (CAG) close partnership with airlines to establish new routes and add capacity on existing ones. Changi Airport’s status as a major air hub in Asia Pacific is reflected in the ranking of the world’s busiest international air routes based on seat capacity1. Changi accounts for three of the top five with SIN-CGK, SIN-KUL and SIN-HKG in second, third and fourth places respectively. Indeed, intra-Asia traffic flows have grown more than 10% each year in the last five years according to data from the International Air Transport Association (see graphic), outpacing growth on traditional long-haul routes such as Europe-Australia, Southeast Asia-USA and Southeast Asia-Europe during the same period. Analysts have estimated that Asia Pacific is likely to become the world’s largest aviation market, surpassing Europe, by the end of 2012.

a new MiLeStone for Changi, AS IT LOOKS AHEAD

1 Source: Centre For Aviation (CAPA), December 20122 ACI Global Traffic Forecast 2012-2031


OPPORtuNItIES IN ASIA

Besides the low cost segment, other gems lay hidden in Asia offering potential new business opportunities to airlines. While the key metropolitan cities in Asia have been well served by FSCs and LCCs, many secondary cities in the region remain relatively unexplored and under-served. Emerging cities such as Xi’an and Jinan in China, Busan in Korea, Pune and Madurai in India and Banjarmasin in Indonesia are potential low hanging fruit that can not only increase an airline’s market share, but differentiate the airline from the rest by giving it a first-mover advantage. CAG stands ready to partner with its airline partners to unlock these growth opportunities. For the better served cities in Asia, a fast growing middle class continues to suggest that traffic growth in the next two decades will be Asia-centric, and competition can only become more intense. To compete for a fair share of this growth, fostering a strong airport-airline product will be critical. For this, CAG has in place a host of customised programmes which airlines can tap on for their expansion and growth. For example, CAG partners airlines in joint marketing and publicity efforts both to cultivate new routes, as well as provide support to sustain them. Enterprising airlines have also expanded their footprint and gained exposure to other passenger markets by establishing partnerships with other airlines through interlining and codesharing arrangements. In recent years, the annual Changi Interline Conference organised

by CAG has become a popular and effective platform for airlines operating at Changi Airport to seek new interline and/or codeshare partners, as well as expand the scope of cooperation with existing partner airlines. In addition to the growth opportunities in Asia, the outlook for long-haul routes is also positive due to growing demand and improved aircraft products. In 2013, Changi will see frequency increases in traditional long-haul markets, such as Copenhagen, Paris and Moscow, as well as new services to Zurich. Moving forward, ACI estimates that there will be an additional 6.8 billion passengers in the next two decades, with half expected to be in Asia Pacific. It notes that “this represents a challenge for several emerging Asian countries that will need to quickly add capacity. All aspects of the industry, be they airports, carriers or ATC, will need to rise to the challenge if demand is to be met.” At Changi Airport, CAG is investing significantly to ensure the airport keeps pace with future growth and that it continually provides passengers with a first class Changi Experience. The development of Terminal 4 at the old Budget Terminal site and the expansion of Terminal 1 will raise handling capacity at Changi Airport by some 29% to 85 million passengers per annum by 2017. For the longer term, a government-led steering committee is exploring options for the development of Terminal 5 and the construction of a third runway to ensure that Singapore remains an attractive hub for the world’s airlines.

PaSSenger traffiC growth – 2005 to 2011 ASIA AT THE HEART OF FUTURE GROWTH

Source: IATA Airport-ISCAGR: Compound Annual Growth Rate

HANGI STATISTICSC

Top 5 Short-Haul Cities (by Passenger Movements)

Cities Passenger Movements

(Dec 2011-Nov 2012)

1 Jakarta 4,090,670

2 Hong Kong 3,407,891

3 Bangkok 3,327,865

4 Kuala Lumpur 3,263,892

5 Manila 2,006,869

16,097,187 (32.5% of total pax movements)(Short-haul defined by flight time of less than 4 hours)

Top 5 Medium-Haul Cities (by Passenger Movements)


(Dec 2011-Nov 2012)

1 Tokyo 1,501,192

2 Sydney 1,290,900

3 Taipei 1,233,508

4 Shanghai 1,180,355

5 Melbourne 1,070,038

6,275,993 (12.7% of total pax movements)(Medium-haul defined by flight time of 4 – 8 hours)

Top 5 Long-Haul Cities (by Passenger Movements)


(Dec 2011-Nov 2012)

1 London 1,312,519

2 Frankfurt 754,517

3 Paris 472,544

4 Auckland 402,793

5 Amsterdam 327,516

3,269,889 (6.6% of total pax movements)(Long-haul defined by flight time of more than 8 hours)

Top 3 Fastest Growing Regions (by Passenger Movements)

West Asia South Asia & Africa North East Asia

DEC 2011–NOv 2012 DEC 2011–NOv 2012 DEC 2011–NOv 2012

1,065,469 4,332,066 12,299,464 DEC 2010–NOv 2011 DEC 2010–NOv 2011 DEC 2010–NOv 2011

889,333 3,880,297 11,082,959 GROwtH GROwtH GROwtH

19.8% 11.6% 11.0%

44%South East Asia

25%North East Asia

11%Oceania

8%Europe

9%South Asia & Africa

2%West Asia

1%Americas

Total Passenger Movement By Region (Dec 2011-Nov 2012)

PaSSenger STATISTICS

Passenger Movements (Rolling 12 months from Dec 2011-Nov 2012)


50.00

48.00

46.00

44.00

42.00

40.00

38.00

36.00

34.00

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

milli

ons

2011 / 2012

2010 / 2011

2009 / 2010

78,000

74,000

70,000

66,000

62,000

58,000

54,000

50,000

Weekly Scheduled Flights (Rolling 12 months from Dec 2011-Nov 2012)


2011 / 2012

2010 / 2011

2009 / 2010


airfreight STATISTICS

Top 10 Cargo Markets (Dec 2011-Nov 2012)

1. China2. United States3. Australia4. Hong Kong5. Indonesia6. India 7. Japan8. Thailand9. Germany10. United Kingdom

109 Scheduled Airlines235 City Links61 Country Links6,478 Weekly FlightsAs of 1 Dec 2012

internationaL LinkS

New Zealand

Australia

Papua New Guinea

timor-Leste

Brunei

Indonesia

South Korea

Japan

PhilippinesCambodia

Hong Kongtaiwan

Malaysia

thailand vietnamLaos

Macau

Myanmar

Russia

China

Nepal

Bangladesh

India

Sri Lanka

Maldives

MauritiusMadagascar

South Africa

Nigeria

Kenya

Ethiopia

Brazil

uSA

Canada

OmanSaudi Arabia

Egyptunited Arab Emirates

Sweden

Polandunited Kingdom

Denmark

NorwayFinland

turkeySpain

Azerbaijan

FranceHungary

LuxembourgSwitzerland

Italy

Czech RepublicBelgiumAustria

Netherlands Germany

Qatar

Singapore

1,900

1,850

1,800

1,750

1,700

1,650

1,600

1,550

Airfreight Movements (Rolling 12 months from Dec 2011-Nov 2012)


Thou

sand

Ton

nes

2011 / 2012

2010 / 2011

2009 / 2010

Bhutan

Kazakhstan


Mr Nicodemus Lampe

of the most popular weekend destinations for travellers particularly from Jakarta for leisure and there’s also a constant stream of business traffic between both cities. In fact, the Singapore-Jakarta service is our busiest route outside of Indonesia. Bali has always been a favourite of Singaporean holidaymakers, and we’ve also seen continual growth in passengers travelling to Balikpapan and Makassar since the launch of these services. Garuda currently operates 56 flights from Changi Airport to Jakarta, four flights each to Makassar and Balikpapan and seven flights to Bali every week. Some of the new upcoming destinations that are in the pipeline include Medan, Surabaya, Jogjakarta, Semarang and secondary cities in Indonesia.

Garuda Indonesia has recently made Makassar its new eastern hub. what are some of the upcoming developments in Makassar that the airline will embark on? what can travelers expect to do in South Sulawesi and beyond?

Makassar is the largest city on Sulawesi Island and was the main harbour and trade centre in pre-colonial Indonesia. Due to strong economic growth that exceeded 7% a year on average, Makassar is now a lucrative commercial hub, an alternative to Jakarta, and is a beach-and-culture tourist destination to rival Bali. The government has also recently drawn up a 2 trillion rupiah (S$288 million) infrastructure plan to cope with the expected increase in commercial and leisure travel. The launch of Makassar as Garuda Indonesia’s third hub, after Jakarta and Denpasar, supports the government’s master plan to develop the Sulawesi Economic Corridor which proclaims the region as the centre of production and manufacturing of agriculture, plantation, fishery and the national nickel mining products. Currently, Garuda Indonesia flies from Makassar to 13 domestic and international destinations, namely Ambon, Balikpapan, Biak, Denpasar, Jakarta, Jayapura, Palu, Surabaya, Gorontalo, Manado, Ternate, Timika, and Singapore. Makassar is a charming harbour city less than three hours flight from Singapore, home to several prominent Indonesian landmarks and islands of unspoilt beauty. It is also dotted with beautiful beaches making it a great place for adventure buffs and divers. Shopaholics can enjoy a world class shopping experience at Trans Studio Mall, the largest shopping centre in Eastern Indonesia, while the Trans Studio Makassar, Asia’s largest indoor theme park, provides hours of fun for families.

IRSt PERSONF

EXCITING DEVELOPMENTS ABOUND FOR garUDa inDoneSiaAn exclusive interview with Mr Nicodemus Lampe, Vice President (Asia Region), Garuda Indonesia

“Singapore is an extremely important market for Garuda and remains a key country in our overall network expansion strategy. We expect more than 2.5 million tourists from Indonesia to visit Singapore in 2013.”

Garuda Indonesia has embarked on a 5-year Quantum Leap expansion programme which aims to make Garuda Indonesia a world-class airline. what are some milestones the airline has achieved to date?

Our ‘Quantum Leap’ strategy is a strategic expansion programme developed to enhance Garuda’s competitive edge to meet future challenges. There are seven elements to the programme, such as a focus on domestic travel and addressing low-cost travel through a subsidiary, and expansion of our current fleet. We have achieved a four-star rating with Skytrax and are on track to becoming a five-star carrier by 2015. Just this year, the airline was also named ‘The World's Best Regional Airline’ by Skytrax. The airline currently operates a new fleet of Boeing 737-800NGs, Airbus A330-200s aircraft and just last month received the delivery of our first Bombardier CRJ1000 NextGen aircraft which would boost our domestic and regional operations. Our aim is to almost double our current fleet of 87 aircraft to 154 aircraft over the next few years. As of 2011, we served over 17.1 million passengers and aim to carry 35.2 million passengers by 2015, a 182% increase from when we launched the programme in 2010. Our capacity in terms of available seat kilometres (ASKs) will increase 171% to 69.7 billion. The current average age of our aircraft fleet is 6.5 years, one of the lowest in the region, and we aim to lower that even further with the delivery of new aircraft to less than 6 years by 2015. As part of Garuda Indonesia’s commitment to continually improve and deliver the best service to passengers, we also enhanced the ‘Garuda Indonesia Experience’ concept of service that introduces the warm hospitality typical of Indonesia through all points of contact with customers. We recently launched a premium check-in area at Jakarta’s Soekarno-Hatta International Airport to better serve our premium passengers and help make their travels more comfortable and convenient.

Passenger traffic between Indonesia and Singapore has been registering strong growth in the last few years. Going forward, what are your views on the traffic potential between Singapore and Indonesia?

There’s huge potential for air travel between Singapore and Indonesia for both inbound and outbound and it is our goal to capitalise on that growth. Singapore is an extremely important market for Garuda and remains a key country in our overall network expansion strategy. We expect more than 2.5 million tourists from Indonesia to visit Singapore in 2013. According to a recent passenger arrival report, over 2.5 million tourists from Indonesia visited Singapore last year and that figure is expected to grow even further this year. We are confident that with Indonesia’s population of over 240 million and the close ties with Singapore, there will be continued strong air traffic flow between the two countries. Singapore is one


new ServiCeS anD freqUenCy ChangeS

EtwORK GROWTHN

Airline City

New weekly Services

(total Resultant weekly Services)

Effective Date

AirAsia Philippines Clark 7 (7) 15-Dec-12

Eithad Airways Abu Dhabi 4 (7) 2-Feb-13

Eithad Airways Brisbane 4 (7) 2-Feb-13

Malaysia Airlines Kuching 7 (14) 3-Feb-13

Mandala Airlines Padang 7 (7) 1-Dec-12

Mandala Airlines Denpasar 7 (7) 1-Dec-12

Mandala Airlines Surabaya 7 (7) 4-Jan-13

SCOOt Qingdao 3 (3) 11-Jan-13

SCOOt Shenyang 3 (3) 11-Jan-13

SCOOt Tokyo-Narita 7 (7) 29-Oct-12

SilkAir Chengdu 2 (9) 2-Jun-13

SilkAir Chiang Mai 1 (5) 31-Mar-13

SilkAir Coimbatore 1 (4) 31-Mar-13

SilkAir Danang 1 (6) 31-Mar-13

SilkAir Langkawi 1 (5) 31-Mar-13

SilkAir Manado 1 (5) 31-Mar-13

SilkAir Penang 7 (35) 31-Mar-13

SilkAir Phuket 7 (35) 31-Mar-13

SilkAir Siem Reap 1 (10) 31-Mar-13

SilkAir Wuhan 3 (7) 31-Mar-13

SilkAir Yangon 2 (11) 31-Mar-13

Singapore Airlines Adelaide 2 (12) 1-Jul-13

Singapore Airlines Fukuoka 2 (7) 31-May-13

Singapore Airlines Houston 2 (7)20-May-13-11-Aug-13

Singapore Airlines Melbourne 7 (28) 1-Jul-13

Singapore AirlinesMoscow-Domodedovo

2 (7)20-May-13-11-Aug-13

Singapore Airlines Osaka-Kansai 3 (14) 31-May-13

Singapore Airlines Perth 7 (28) 28-Oct-12

Singapore Airlines Yangon 7 (7) 28-Oct-12

Singapore Airlines Copenhagen 2 (5) 31-Mar-13

Swiss International Air Lines

Zurich 7 (7) 13-May-13

CODESHARESingapore Airlines (SIA) and Aegean Airlines commenced their codesharing agreement from 1 December 2012. Under the agreement, Singapore Airlines placed its code on Aegean-operated flights serving Athens from Frankfurt, London, Milan and Munich, as well as to flights serving Thessaloniki from Frankfurt and Munich. Reciprocally, Aegean Airlines will add its code to SIA-operated flights serving Singapore from Frankfurt, Milan and Munich, and flights beyond Singapore to Melbourne and Sydney. Aegean’s codeshare on SIA-operated flights will commence once regulatory approvals have been obtained.

CARGOEmirates increased its Dubai-Singapore-Sydney freighter frequency from twice-weekly to 4-times weekly for its winter schedule from end-Oct 2012.

Yangtze River Express increased its frequency from 7-weekly to 10-weekly freighter flights starting end-Oct 2012. This is comprised of one additional flight on the Shanghai - Chongqing - Bangkok - Singapore - Shanghai route, and two additional flights to the Shanghai - Singapore - Bangkok - Shanghai service. Both routes will become 5-times weekly services as a result of the increase in flights.


Joining in the official opening ceremony are senior management of FedEx Express' partners such as Airport Police Department, JTC Corporation, Singapore Customs, Civil Aviation Authority of Singapore, Economic Development Board of Singapore and CAG.

IR CARGOA

FedEx officially opened its new South Pacific Regional Hub at the unique first-of-its kind air cargo express facility located at Singapore

Changi Airport’s Air Cargo Express (ACE) Hub on 3 October 2012. The 282,700 square foot integrated facility houses FedEx delivery, pick-up and air-operations under one roof. This largest investment in Singapore since FedEx’s establishment in 1989 is also its biggest facility in Asia Pacific, consolidating air, ground and clearance operations under one roof. The Hub boasts an airside infrastructure that includes two aircraft parking bays. This close proximity means that FedEx could take less than four minutes to transfer its parcels from the aircraft to its sort belts. Within the hub, the facility houses a fully-automated high-speed intelligent sorting system that can sort up to 12,000 packages per hour and load onto over 280 delivery vehicles at the same time. Singapore is FedEx’s Asia Pacific transshipment point for shipments in and out of Australia, New Zealand and Southeast Asia countries such as Laos and Cambodia. FedEx is currently servicing 34 weekly flights in & out of Singapore, making it the international express company that operates the highest number of its own flights in & out of Singapore to Asian and US destinations. This new hub reinforces FedEx’s long-term commitment to Singapore and also underpins FedEx’s support for Singapore’s aim to be the leading air cargo hub in the region.

“We are delighted to join FedEx Express in celebrating the launch of its South Pacific Regional Hub. This facility will enhance FedEx’s service offering to its customers in the region, significantly boasts Changi’s express cargo handling capabilities and reinforces its leading position as a key cargo hub in Asia Pacific,” said Mr Yam Kum Weng, CAG’s Executive Vice-President for Air Hub Development. Despite the uncertain global economic outlook over the short-term, Asia is projected to account for about 60% of world trade in 2015*. With the rise of Asia, there will be a growing need for air logistics players to provide express delivery options for time-critical products. Leveraging on Changi’s strong connectivity to Southeast Asia and Southwest Pacific to capitalize on the increasing intra Asia trade, other than FedEx Express, global express companies like DHL Express, UPS and TNT have also set up regional hubs in Singapore. Changi Airport’s express cargo volume has grown more than 25% in the past three years, with more than 100,000 tons of express cargo handled in 2011.

* Global Insight, BCG Analysis, 2009.

feDex faCiLity AT AIR CARGO EXPRESS HUB TAKES OFF

Changi Airport Group (CAG) has increased its support for the air cargo sector in the face of continuing headwinds for the airfreight business. For the first six months of 2013,

rebates for landing fees at Changi Airport will be raised to 50% for all scheduled freighter flights. This additional initiative, amounting to S$4.5 million, brings CAG’s total support for the air cargo sector to close to S$20 million since the start of FY2012/13. In March 2012, CAG announced a S$15-million cargo support package for FY2012/13 consisting of a 20% landing fee rebate for freighter flights, partnership funding support for new cargo development initiatives, as well as up to 20% rental rebates for cargo tenants leasing CAG cargo facilities at the Changi Airfreight Centre.

While passenger traffic at Changi has been growing steadily over the past year, the air cargo sector has been facing downward pressure due to falling yields of airfreight carriers, as well as persistently high jet fuel prices. The International Air Transport Association has reported that the global cargo tonnage is likely to contract 2.0% in 20121. Said Mr Lee Seow Hiang, CAG’s Chief Executive Officer, “Our cargo industry partners have expressed continued concern about the outlook for the sector given the ongoing uncertainty about the health of the world’s major economies. Hence, CAG has decided to provide this additional support to moderate operating costs for cargo airlines at Changi Airport. This is our commitment to building strong partnerships, in good times as well as bad.”

Changi airPort groUPINCREASES SUPPORT FOR AIR CARGO SECTOR


Fly Me to Singapore, the first ever consumer fair organised by CAG, opened with fanfare in Wuhan, China on 29 November 2012. A major intermodal transport hub in China, Wuhan city in Hubei province is an up-and-coming Chinese city strategically located in central China. Direct flights have been launched from Singapore to Wuhan since April this year, with SilkAir and China Eastern Airlines

operating a total of seven weekly services between them. This consumer fair was jointly organised with CAG's partners, Singapore Tourism Board and International Enterprise Singapore, in a newly opened shopping mall owned by Singapore developer CapitaMall Asia - CapitaMall Wusheng. The fair received active participation from both operating carriers, their authorised travel agents, and 10 Singapore companies offering a wide range of goods and services to visitors. Among them were tourist attractions (such as Resorts World Sentosa and Marina Bay Sands), food distributors (such as Bee Cheng Hiang), property developers (such as Ascott) and educational institutions (such as National University of Singapore and Singapore Institute of Management). The inaugural fair was widely covered by local news and radio stations. The Vice Secretary General of Wuhan City Municipal Government and other senior government officials graced the grand opening ceremony. Mr Wong Woon Liong, Senior Advisor of CAG said the consumer fair was built upon the firm foundation of Singapore and Wuhan's relationship, and the success of the collaboration will further strengthen the warm ties between the two cities.

The CAG booth was dressed in a garden theme and showcased partner airlines through an array of aircraft models.

The "Fly me to Wuhan" consumer fair was jointly opened by CAG and its partners at CapitaMall Wusheng.

Changi Airport took home the Best Airport Marketing Award (Asia Region) at the World Routes Conference this year! The award

recognises excellence in air service development by airports and winners are decided by peer votes from other airports. CAG would like to express its gratitude to all its partners for their strong and unwavering support! In Abu Dhabi itself, the CAG team also brought Changi Airport to the world with its garden-themed display and hospitable offerings – visitors were treated to Singapore-styled coffee and tea. Response was so overwhelming that more than 850 cups of coffee and tea were served in just in 3 days! CAG’s trademark array of aircraft models enthralled visitors, just as instant print photography and its very friendly airport staff. Souvenirs this year took on a meaningful spin in the form of seed paper and a small pot, representing CAG’s aspirations to continue to grow with our partners.

CHANGI WINS AT worLD roUteS ConferenCe 2012

vENtSE

FLY ME froM wUhan to SingaPore


vENtSE

Changi Airport Group participated in the Latin American and Caribbean Air Transport Association Airline Leaders Forum 2012 held from 14 to 16 November 2012. This year’s event

was held in Panama City and marked CAG’s first participation at the annual event. The event is the largest of its kind in the Latin

American and Caribbean commercial aviation industry and serves as a platform for leading CEOs and top-level industry speakers to discuss issues of importance in the region's airline industry. CAG sponsored a pavilion and hosted a booth at the event. Besides networking opportunities, CAG showcased Changi Airport’s global connectivity and shared latest developments in Singapore with the delegates.

A team from Singapore Changi Airport was in Johannesburg, South Africa to participate at the 44th Africa Airlines Association Annual General Assembly from 18 to 20 November 2012. At the same time, CAG organised a

“Spectacular Singapore” networking seminar at the Renaissance-style Hotel Michelangelo to update the South African travel trade and media about the latest developments of Singapore’s aviation and tourism. Graced by Singapore High Commissioner to South Africa Bernard Baker, “Spectacular Singapore” was also supported by Singapore Airlines, Singapore Tourism Board and CAG’s travel trade partners such as Star Cruises, and inbound travel agents GTMC and Siam Express. Through participation in the event, CAG hopes to forge more air links and to drive higher passenger traffic flows between Africa and Singapore.

CAG INTRODUCES SingaPore to SoUth afriCa

INCREASING PRESENCE IN Latin aMeriCa

CAG's partners for "Spectacular Singapore" – Singapore High Commissioner to South Africa, Singapore Airlines and Singapore Tourism Board.

South African travel agents learn more about what Singapore has to offer.

CAG impressed delegates with Changi Airport's global connectivity network.


Following S ingapore A i r l i nes ’ launch o f f l igh ts to Sao Pau lo , B raz i l i n Ma rch 2011 , es tab l i sh i ng Changi Airport’s first direct air link with South America, CAG

has been working closely with the airline to grow the market. On 23 October 2012, CAG organised a networking event in Sao Paulo which saw the overwhelming attendance of over 100 Brazilian outbound travel agents in Sao Paulo. The participants had a great evening meeting the four Singapore inbound travel agents present – Star Holiday Mart/JTB, RMG, Tour East and Tradewinds – and enjoying a performance by a popular stand-up comedian, Dani Calabresa.

From 24 to 26 October 2012, CAG, together with Singapore Airlines and the four inbound travel agents, exhibited at the ABAV – Fair of the Americas travel trade show. Considered an attractive and exotic destination in the East, Singapore was very well-received and generated much interest in the travel operators in Brazil. With strong contacts forged between the Singapore and Brazilian travel trade, Singapore is ready to welcome even more Brazilian travellers visiting Singapore or transiting via Changi Airport.

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Brazilian outbound travel agents getting to know more about Singapore from their Singapore inbound counterparts.

CAG, together with Singapore Airlines and the four inbound travel agents, exhibited at the ABAV – Fair of the Americas travel trade show.


With CAG’s close engagement of Shenzhen Airlines over the years, coupled with the attractiveness of Changi Airport's comprehensive regional network, the airline

has selected Changi Airport as the first airport to relaunch their international services to the Southeast Asian region. Shenzhen Airlines launched its first return flight to Singapore on 29 October 2012. The Chinese delegation from the airline, led by Vice President, Mr Wang Jie, was greeted with a roaring lion dance performance in Changi Airport’s Terminal 1. Senior management from CAG, Air China (a major shareholder of Shenzhen Airlines) and SATS (the airline’s ground handler at Changi Airport) joined in the welcome celebrations. To show appreciation to Shenzhen Airlines for selecting Changi Airport as a strategic partner in its international expansion plan, CAG EVP (Airhub Development), Mr Yam Kum Weng, hosted the Chinese delegation to a dinner that evening. With daily morning flights out from Changi Airport to Shenzhen, the new service by Shenzhen Airlines provides an extra option for passengers travelling to Shenzhen or other parts of China through the airline's wide domestic connectivity from Shenzhen Airport.

RETURN OF Shenzhen airLineSTO CHANGI AIRPORT

A rousing welcome to Shenzhen Airlines' return to Changi Airport.

viSakhaPatnaM LAUNCHES FIRST NON-STOP INTERNATIONAL SERVICE TO SINGAPORE

On 28 October 2012, SilkAir commenced thrice-weekly services to Visakhapatnam, a fast growing coastal port city and an important industrial hub in the southeastern coast of

India. Changi Airport celebrated the special occasion with SilkAir’s senior management and passengers at a welcome ceremony held at the gate holdroom prior to the airline’s first departure to Visakhapatnam. Upon arrival at Visakhapatnam, the Changi Airport and SilkAir delegations were warmly welcomed by the State Minister for Investments and Infrastructure, Airports and Ports, airport officials as well as the local business community. With the Visakhapatnam-Singapore service being the Indian airport’s first non-stop international service, its successful launch was also celebrated with more than 200 guests from the local business community and travel trade at a gala dinner the following night. With links to 12 cities in India and more than 200 weekly departures, Singapore is more connected to India than any other Southeast Asian airport. The new SilkAir service will be the first international non-stop service to Visakhapatnam departing Singapore every Wednesday, Friday and Sunday.

Mr Wong Woon Liong, Senior Advisor, Changi Airport Group and Mr Leslie Thng, CEO, SilkAir, officiating the welcome ceremony at Changi Airport.

HANGI NEWSC

On 1 December 2012, Mandala Airlines launched a new service to Padang, Indonesia, a new city link for Changi Airport, with daily flights. With a flight time of just an hour,

the provincial capital of West Sumatra offers exciting activities for everyone – from surfing at the Mentawai Islands, to diving at Bungus Bay, and trekking at Kerinci Seblat which is the largest national park in Sumatra. Padang is also the principal gateway to the Minang highlands, which is the ancient homeland of the Minangkabau in western central Sumatra. It’s where you can marvel at lush rice fields, towering volcanoes and spectacular crater lakes amidst a unique culture. The new service enhances Singapore’s connectivity with Indonesia, linking Singapore to a total of 16 Indonesian cities.

PaDang – A NEW CITY LINK FOR CHANGI AIRPORT

A Minangkabau house in Western Sumatra that gives Padang a distinctive flavour.


Changi Airport's first Boeing 787 Dreamliner arrival was greeted with a rousing water canon salute performed by Changi’s Airport

Emergency Service as the aircraft cruised into the airport on 14 October 2012. The flight operated by Japan Airlines took off from Tokyo's Narita Airport and was the first to replace the existing Boeing 767 fleet which flies between Tokyo and Singapore. To mark the significant event, Mr Yoshiharu Ueki, Japan Airline’s President, personally flew on this inaugural flight to join the celebrations in Singapore. A media conference was held in Changi Airport, followed by a ribbon cutting ceremony. CAG CEO, Mr Lee Seow Hiang, and CAG Senior Advisor, Mr Wong Woon Liong, hosted the celebrations. In addition to choosing Singapore as one of its first international destinations to operate the Dreamliner, the airline will be increasing its Narita-Singapore service from the current daily to twice daily. This potentially increases the Dreamliner flights between Singapore and Tokyo to a total of three daily services – twice daily to Narita Airport and once daily to Haneda Airport.

firSt Boeing 787 DreaMLiner ARRIVES AT CHANGI AIRPORT

inCreaSeD CaPaCity froM SingaPore to eUroPe FROM SUMMER 2013Changi Airport will see enhanced capacity to Europe from the Northern Summer 2013 season starting at end-March 2013.

SwISS REtuRNS tO CHANGI AIRPORt

Swiss International Air Lines (SWISS) will introduce daily non-stop services between Zurich and Singapore from May 2013, using 3-class A340-300 aircraft. SWISS’ new services will not only boost seat capacity on the route, but also provide more options for travellers from Singapore to Switzerland and Europe. Passengers from Switzerland can also use Changi as the hub for the region and tap on its excellent connectivity for their travel to Southeast Asia and Southwest Pacific.

AIR FRANCE tO INCREASE CAPACItY BEtwEEN SINGAPORE AND PARIS

From Northern Summer 2013, Air France will be increasing capacity on its Paris-Singapore service with the introduction of an additional weekly A380 service, bringing operations of the superjumbo on this route from 3-weekly to 4-weekly. B777-300ER aircraft will be used on the other three weekly services.

SINGAPORE AIRLINES tO INCREASE CAPACItY BEtwEEN SINGAPORE AND SCANDINAvIA

Singapore Airlines (SIA) will increase services between Singapore and Copenhagen in Denmark from the current 3-weekly to 5-weekly from 31 March 2013. This follows final regulatory approval being obtained for a joint venture between SIA and Scandinavian Airlines (SAS). SAS will add its code to these flights.

Come 31 March 2013, British Airways will enhance its service for Singapore where both daily services from London Heathrow will depart from the airline's award-winning home in Terminal 5. The

terminal was named as the world's best airport terminal by Skytrax in 2012. It is also the gateway to British Airway's extensive European network, enhancing passengers' experience for even faster and smoother onward connections. In addition, one of the two daily London-Singapore services will be operated by British Airways' latest aircraft in the fleet - the Boeing 777-300ER. The 297-seat aircraft is fitted with their latest onboard seat products in all 4 cabins, including First Class, Club World, World Traveller Plus and World Traveller.

BritiSh airwaySENHANCES SERVICE TO SINGAPORE


HANGI NEWSC

air traffiC CaPaCity to Be inCreaSeD AT CHANGI AIRPORT

The Civil Aviation Authority of Singapore (CAAS) has unveiled plans to increase Changi Airport's air traffic capacity by 40%, in line with

projections that air traffic will grow at 5% per annum in the coming years. This follows the findings of a study commissioned by CAAS, conducted by UK air navigation service provider, NATS, which revealed that Changi Airport’s current two runways can handle around 40% more flights if they are better utilised. Last year, Changi Airport handled 302,000 air traffic movements and NATS estimates that Changi can handle as many as 430,000 movements without sacrificing service standards.

Some measures to achieve this growth are already being introduced. For example, the minimum interval between take-offs by aircraft of the same wake category has been reduced from two to 1.5 minutes. Changi Airport Group is also reducing the duration of scheduled runway inspections by leveraging IT systems and beefing up resources to improve the efficiency of these inspections. Flight routes have also been reconfigured to increase air traffic predictability and speed restrictions have been applied to more air traffic sectors, in order to better regulate air traffic flow. These new measures have already yielded positive results, with CAAS revealing that on-time performance has improved by around 50% over the last six months, compared with the same period last year. Notwithstanding the above capacity enhancements, the Singapore government has already commenced a long-term capacity growth study for Changi Airport which will cover, among other areas, plans for a third runway.

Low-cost carriers (LCCs) have experienced strong growth since their introduction in 2004, with LCC traffic accounting for a quarter of Changi Airport’s

total passenger movements annually in 2012. Travellers are also becoming savvier by travelling on different LCCs and performing self transfers at airports for a better fit to their travel schedules. To provide these passengers with a hassle-free experience, CAG launched Changi Connects, a facilitated transfer service at a fee of $16 per person per connection. This new service allows passengers to remain in transit and proceed to their connecting flights while their checked baggages are transferred. Scoot is the first LCC to partner CAG to bring this service to its passengers. Tiger Airways will be the latest airline to offer this service for travel commencing 1 Feb 2013. Moving forward, CAG hopes to bring onboard other airlines (both low-cost and full service carriers) to Changi Connects, so that more airlines can benefit from the fast-growing LCC feed traffic at Changi.

Changi ConneCtS ENHANCES TRANSFER EXPERIENCE AT CHANGI

Transiting via Singapore has just become more attractive with the launch of the Changi Transit Programme. This joint promotion between CAG, Singapore Airlines (SIA) and SilkAir, will allow qualifying transit

passengers to redeem up to S$40 worth of vouchers for shopping, dining and even lounge access during this campaign*. To collect their vouchers, eligible customers simply present both their electronic ticket and boarding pass of their Singapore-bound flight at any of the seven Information Counters in the transit areas of Changi Airport's Terminals 2 and 3. For passengers interested in a stopover, CAG and the two airlines are offering value packed holiday deals that showcase the best that Singapore has to offer. Priced from as low as S$54*, the Singapore Stopover Holidays promotion will offer travellers great value on hotels, key attractions and transportation during their stay in Singapore.

* Subject to terms and conditions.

great DeaLS FOR PASSENGERS TRANSITING AT CHANGI

Documents

Jan-Mar/2013 - Singapore Changi Airport · Jan-Mar/2013 Issue 12 A new milestone for Changi, as it looks ahead ... Passenger traffic at Changi Airport rose 10.1% in the first 11 months