Singapore Changi Airport Air Hub News
Changi Airport Crosses 55 Million Passenger Movements in 2015 Garuda Indonesia Celebrates Their 50th Anniversary in Singapore United Launches San Francisco - Singapore Non-stop in June 2016
Issue 25 April-June 2016
page 02
singaporeFocus
02
SINGAPORE FOCUS Singapore Announced 3rd Top City Tourist Destination Singapore Airshow 2016 Welcomes More Than 1000 Exhibiting Companies From 50 Countries
04
COVER FEATURE Year In Review: Changi Airport Crosses 55 Million Passenger Mark in 2015
06
CHANGI STATISTICS Passenger and Airfreight Data
08
NETWORK GROWTH Latest Updates on Changi Airport’s Network and Services United launches San Francisco – Singapore non-stop in June 2016 Singapore Airlines launches Canberra, Wellington Finnair and Jetstar Deepen Partnership in Singapore Air Mauritius Establishes “Air Corridor” between Asia and Africa Changi Deepens Connectivity to China
12
FIRST PERSON Garuda Indonesia: 50 Years of Partnership in Singapore
13
EVENTS
14
AIR CARGO
Singapore announced 3rd top city tourist destination In its annual study of top tourism destinations, Euromonitor International has announced Singapore as the worlds 3rd top city destination of 2014 with 17 million international visitor arrivals. This comes just behind London and Hong Kong at 2nd and 1st respectively. The achievement comes despite 2014’s tumultuous travel environment. The study acknowledged China’s stricter anti-graft regulations, combined with new “zero-dollar” tourism laws, and the competition of regional low-cost destinations as key challenges faced towards growth in visitor arrivals. Nevertheless, on top of political stability, low crime rates and language flexibility, recent developments in the tourism industry created a larger draw for travellers. Euromonitor noted Singapore’s growing cruise industry as a large draw for visitors. Furthermore, Singapore Airlines’ (SQ) strong expansion was acknowledged as an important opportunity for Singapore’s future tourism growth. The national carrier’s increasing partnerships were seen as crucial to grow in regions not previously operated to. Of note were its partnerships with Virgin Australia, which allowed SQ to expand in Asia Pacific, and Lufthansa, as its largest European partner. The study covered 100 of the world’s leading cities in terms of international tourist arrivals revealing continued growth in arrivals to global urban centres, illustrating the importance of tourism to urban economies. City arrivals data were sourced directly from national statistics offices, airport arrivals, hotel/accommodation stays or other methods for all 57 core countries and 93 market insight countries under review.
16
CHANGI NEWS
Editorial Team Lim Ching Kiat, Senior Vice President, Market Development Donald Tan, Vice President, Airline Development Damon Wong, Assistant Vice President, Airline Development Peh Ke-Wei, Vice President, Passenger Development Phau Hui Hoon, Senior Manager, Cargo & Logistics Development Lim Shyan Jun, Assistant Manager, Cargo & Logistics Development Tan Chun Wui, Senior Associate, Airline Development Changi Insight is published quarterly. Design by Meta Fusion Pte Ltd. MCI (P) 108/03/2016 For enquiries on aviation business opportunities with Changi Airport, please contact
[email protected] www.changiairportgroup.com
Contributors Team Toh Ern Chong, Senior Manager, Airline Development Tan Shu Yee, Senior Manager, Airline Development Samantha Yuan, Manager, Airline Development Pang Yee Huat, Assistant Manager, Airline Development Ng Sie Yen, Assistant Manager, Passenger Development Neo Wei Shan, Assistant Manager, Passenger Development Eileen Thian, Associate, Cargo & Logistics Development
page 03
singaporeFocus
Singapore Airshow 2016 welcomes more than 1000 exhibiting companies from 50 countries The Singapore Airshow, Asia's largest and one of the most important aerospace and defence exhibitions in the world, was held between 16 and 21 February 2016. During the course of the exhibition, the latest state-of-the-art systems and equipment, together with their related technologies and developments, were displayed by top aerospace companies around the world. The Singapore Airshow also played host once again to the Singapore Airshow Aviation Leadership Summit (SAALS) 2016 at the Raffles City Convention Centre (RCCC) from 14-15 February 2016. Jointly organised by the Singapore Ministry of Transport (MOT), Civil Aviation Authority of Singapore (CAAS), Experia Events and International Air Transport Association (IATA), the conference brought together more than 250 representatives from key stakeholders in aviation, including top government representatives, civil aviation authorities and senior executives of airlines, airport operators, aircraft manufacturers as well as the heads of the International Civil Aviation Organization (ICAO) and IATA to exchange valuable insights, network and strengthen the nexus between governments and the aviation industry. With the theme “Aviation Tomorrow: Managing New Challenges, Realising New Potentials”, SAALS 2016 focused on how new ideas and emerging technologies, while presenting new challenges for the sector, could also provide new opportunities and enablers to drive the success of global aviation. In his opening address, Mr Khaw Boon Wan, Coordinating Minister for Infrastructure and Minister for Transport, Singapore noted the volatility faced by the aviation industry, with collapsing fuel oil prices set against a darkened global economic outlook and turmoil in the global capital market. Mr Khaw called for greater collaboration in the areas of air services liberalisation, aviation safety and harmonising aviation regimes to achieve continued growth in the aviation sector,
The Singapore Airshow was officially opened by Coordinating Minister for Infrastructure and Minister for Transport Mr Khaw Boon Wan and Minister for Defence Dr Ng Eng Hen on 16 February 2016. Photo credits to Experia Events.
which could in turn catalyse and uplift the rest of the economic engines. The list of luminaries who attended SAALS 2016 included Dr Olumuyiwa Benard Aliu, ICAO Council President and Mr Tony Tyler, Director General & CEO, IATA. Ms Violeta Bulc, European Commissioner for Mobility and Transport, also delivered a keynote address during the lunch on 15 February 2016. Other notable speakers included Lord Ahmad of Wimbledon, Parliamentary Under Secretary of State for Transport and Parliamentary Under Secretary of State (Minister for Countering Extremism), United Kingdom, Mr Michael Huerta, Administrator, US Federal Aviation Administration, Mr Henrik Hololei, European Commission DirectorateGeneral for Mobility and Transport, Ms Angela Gittens, Director-General, Airports Council International, Capt Martin Chalk, President, International Federation of Air Line Pilots’ Associations, Mr James Hogan, CEO, Etihad Airways, Mr Willie Walsh, CEO, IAG Group, Mr Christoph Mueller, CEO, Malaysia Airlines and Mr Vikram Widge, Head of Climate and Carbon Finance, World Bank. The Singapore Airshow, which opened to trade visitors on 16 February 2016, saw a total of 51 deals inked this year, up from 44 in 2014. 11 of these deals had disclosed values of approximately
US$12.7 billion (S$17.9 billion). On the sidelines of the show, major aerospace firms like GE Aviation and Pratt & Whitney also announced multi-million dollar investments to boost their manufacturing capabilities in Singapore. More than 1,000 companies from about 50 countries attended Singapore Airshow 2016, including 65 of the top 100 aerospace companies in the world. This year's Airshow came to a close on 21 February 2016 after drawing more than 80,000 visitors when the exhibition was opened to members of the public over the weekend. Visitors on the final day were treated to the sight of the massive B-52 Stratofortress, while aerobatic displays by South Korea's Black Eagles (ROKAF) and the Republic of Singapore Air Force (RSAF) continued to wow the crowd. The next edition of the Singapore Airshow is scheduled from 6 to 11 February 2018.
page 04
COVERFEATURE
year in review: Changi Airport crosses 55 million passenger mark in 2015 Singapore Changi Airport capped a resilient performance in 2015 with new benchmarks for passenger traffic and aircraft movements, handling a record 55.4 million passengers and 346,330 landings and take-offs during the year. This represented an increase of 2.5% and 1.4% respectively. On the cargo front, airfreight movements remained stable at 1.85 million tonnes for the year. In December 2015, Changi Airport registered a total of 5.29 million passenger movements (+3.9% on-year), the highest ever traffic the airport has achieved in a month since it opened in 1981. Changi Airport’s daily record was also broken on the Saturday before Christmas (19 December 2015), with more than 192,000 passengers passing through during the 24 hours. Traffic was positive for most of Changi Airport’s top 10 country markets with Thailand (+12.5%), Vietnam (+7.2%) and China (+7.0%) registering the strongest growth. This was offset by a softer showing for Indonesia (-7.3%) and Hong Kong (-1.2%). While the broader trend for air travel was positive, traffic to Singapore was impacted by the strength of the Singapore Dollar against some regional currencies.
Changi continues to roll out innovative systems to ensure quality service to passengers.
Shaping the best possible travel experience Changi Airport received its 500th Best Airport award in November 2015 and this milestone rounded up another year of excellence during which Changi clinched a total of 28 ‘Best Airport’ awards, including the World’s Best Airport accolade at the 2016 Skytrax World Airport Awards, an honour Changi achieved for the third year in a row and the sixth time in its history. Changi Airport Group CEO Mr Lee Seow Hiang, said, “Going forward, economic uncertainty in many markets, made worse by lacklustre business and consumer confidence, may dampen travel demand
in the near term. However, low fuel prices should support airlines’ profitability. The outlook for Changi is also bolstered by positive developments such as the addition of new city links and airlines in the coming months. These include Singapore Airlines’ new services to Dusseldorf, Canberra and Wellington in the second half of this year, as well as the arrival of Fiji Airways’ new direct service from Nadi in April." Mr Lee added, “Closer to our hub, Asia continues to present exciting growth opportunities, with untapped tourism potential in many parts of the continent, and growing affluence in the emerging economies driving air travel. Here, Changi Airport is well placed to capture future
page 05
COVERFEATURE
Investing in new cargo infrastructure While Changi Airport’s total cargo throughput was little changed at 1.85 million tonnes for the year, there were pockets of growth in niche cargo segments. For instance, there was strong doubledigit growth in the pharmaceuticals cargo segment, which registered a 44% growth on-year in 2015.
The ever-changing Changi skyline, soon to include the Jewel centrepiece and a fourth terminal.
growth with our expanding network, including many secondary cities, to key markets like China, India and Indonesia. We will continue to work closely with our airline partners to establish new connections to develop the Singapore air hub and better serve our passengers.” Cultivating new airlines and destinations During the year, seven new carriers commenced operations at Changi Airport. The return of Air New Zealand boosted capacity on the Singapore-Auckland route while the addition of Batik Air, Thai Lion Air and Myanmar National Airlines strengthened Changi’s connectivity within Southeast Asia. Three other airlines (My Indo Airlines, Polar Air Cargo and AirBridgeCargo) enhanced Changi’s cargo network.
Changi Airport added nine new destinations in 2015, highlighted by four new Chinese city links (Changchun, Quanzhou, Sanya and Yinchuan), strengthening the airport’s position as the most connected airport in Southeast Asia to China, with a total of 32 city links to the country. Besides the Chinese cities, Changi also saw new services to Cairns in Australia, Lucknow in India, Luang Prabang in Laos, Pattaya (U-Tapao) in Thailand and Cincinnati in the United States, a new freighter link.
Supporting the growth of the express cargo segment, Changi Airport Group and DHL Express announced plans in March 2015 to build a 24-hour express facility at the Changi Airfreight Centre that will be completed later in 2016 to support the growth of trade within the region. The new facility would increase DHL’s throughput by three times and processing speed by six times, and further anchors Changi Airport’s position as a key cargo and logistics hub in Asia. Similarly, SATS is also investing in an e-Commerce Hub at Changi Airport to tap the region’s booming e-commerce market, with Singapore Post (SingPost) as its anchor customer. Expected to be completed in December 2016, the new facility will improve efficiency and space utilisation, as well as enhance the consignment handling capabilities for both SATS and SingPost. SATS will be the first ground handler in the world to own such an airside facility.
page 06
changistatistics
Total Passenger Movement By Region
Top 10 Cargo Markets
(Rolling 12 months from Feb 2015-Jan 2016)
(Rolling 12 months from Feb 2015-Jan 2016)
44%
26%
South East Asia
3%
7%
Europe
9%
10%
Oceania
North East Asia
1. China 2. Australia 3. Hong Kong 4. United States 5. India 6. Indonesia 7. Japan 8. Germany 9. United Kingdom 10. Thailand
South Asia & Africa
1%
America
West Asia
International Links
(As of 1 Jan 2016)
Sweden Finland
Norway
Canada United Kingdom
Netherlands Belgium Luxembourg Switzerland France Italy
USA
Russia
Denmark
Lithuania Poland Germany Czech Republic Austria Hungary
Kazakhstan China
Ukraine Turkey Azerbaijan
Spain
South Korea Japan Nepal Bhutan
Qatar
Egypt Saudi Arabia Oman Nigeria
Bangladesh
Myanmar United Arab Laos Emirates India Thailand
Ethiopia
Hong Kong Taiwan
Vietnam
Cambodia Malaysia
Maldives
Kenya
Macau
Sri Lanka Singapore
Philippines
Brunei Indonesia
Papua New Guinea Timor-Leste
Brazil Mauritius
Madagascar
Australia
South Africa
New Zealand
112
80
Scheduled Airlines
208
Country Links
330 City Links
Note:
Weekly Freighter Flights
6,854 Weekly Flights
**The statistics are provided for your convenience only and are not to be treated nor relied upon by any person as any kind of advice.
54
Weekly Freighter Links
As the statistics have been provided to Changi Airport Group ("CAG") by third parties, CAG is in no position to verify the veracity or correctness of any of the published statistics. CAG shall not be liable for any damage or loss suffered by any party as a result of the use of, or reliance upon the statistics or information provided in this publication.
page 07
changistatistics
Top 3 Fastest Growing Regions
(by Passenger Movements)
Southwest Pacific
North East Asia
West Asia
FEB 2015-JAN 2016 5,764,908
14,504,316
1,509,759
FEB 2014-JAN 2015 5,502,771
13,692,714
1,291,932
+ 4.8%
+ 5.9%
+ 16.9%
Passenger Movements
Top 5 Short-Haul Cities
(Rolling 12 months from Feb 2015-Jan 2016)
(by Passenger Movements)
56.00
54.00
3,813,434
1. Bangkok 2013 / 2014
2. Jakarta
2014 / 2015
3. Kuala Lumpur
3,812,298 3,783,890
4. Hong Kong
52.00
5. Manila
2012 / 2013
3,710,297 2,104,715
50.00
17,224,634
48.00
(Short-haul defined by flight time of less than 4 hours)
46.00 Feb
MAR
APR
MAY
jun
jul
aug
sep
oct
nov
dec
jan
Aircraft Movements
Top 5 Medium-Haul Cities
(Rolling 12 months from Feb 2015-Jan 2016)
(by Passenger Movements)
380
320
1,549,470
2. Taipei 2013 / 2014
3. Sydney
2014 / 2015
4. Shanghai 5. Seoul
2012 / 2013
7,709,313
300
280 Feb
MAR
APR
MAY
jun
jul
aug
sep
oct
nov
dec
jan
Cargo Movements
(Medium-haul defined by flight time of 4 – 8 hours)
1,501,075 1,360,190 1,243,593
13.9%
of total pax movements
Top 5 Long-Haul Cities
(Rolling 12 months from Feb 2015-Jan 2016)
(by Passenger Movements)
1870
1860
2,054,985
1. Tokyo
360
340
31.2%
of total pax movements
1,137,525
1. London 2014 / 2015
610,890
2. Frankfurt
419,337
3. Auckland
1850
4. Paris 1840
2013 / 2014
5. Zurich
2,977,854
1830 2012 / 2013 1820 Feb
MAR
APR
MAY
jun
jul
aug
sep
oct
nov
dec
jan
(Long-haul defined by flight time of more than 8 hours)
418,741 391,361
5.4%
of total pax movements
page 08
Networkgrowth
New Services and Frequency Changes Airline
City
Air Mauritius
Mauritius
Bangkok Airways
Koh Samui
Cebu Pacific Air Cebu Pacific Air
Increase in Weekly Svs
Resultant Weekly Svs
Effective Date
2
3
12-Mar-16
2
14
27-Mar-16
Davao
1
3
2-Apr-16
Iloilo
1
3
30-Mar-16
EVA Air
Taipei-Taoyuan
2
13
27-Mar-16
EVA Air
Taipei-Taoyuan
1
14
10-Jun-16
Fiji Airways
Nadi
2
2
6-Apr-16
Garuda Indonesia
London-Heathrow
5
5
31-Mar-16
Qantas Airways
Melbourne
3
10
29-Apr-16
Qantas Airways
Perth
7
10
20-Jun-16
Sichuan Airlines
Chengdu
7
7
25-Jan-16
Silkair
Changsha
1
4
19-Apr-16
Silkair
Cochin
3
10
1-Apr-16
Silkair
Hanoi
1
5
27-Mar-16
Silkair
Hyderabad
1
10
27-Mar-16
Silkair
Koh Samui
2
14
27-Mar-16
Silkair
Trivandrum
1
5
27-Mar-16
Singapore Airlines
Bangkok (Suvarnabhumi)
7
42
27-Mar-16
Singapore Airlines
Brisbane
3
24
28-May-16
Singapore Airlines
Canberra
4
4
19-Sep-16
Singapore Airlines
Colombo
3
10
30-Mar-16
Singapore Airlines
Dusseldorf
3
3
21-Jul-16
Singapore Airlines
Mumbai
4
18
21-Apr-16
Singapore Airlines
Wellington
4
4
19-Sep-16
Scoot
Jeddah
3
3
1-May-16
West Air
Chongqing
3
3
4-Feb-16
Tigerair
Wuxi
4
4
28-Apr-16
Tigerair launches inaugural flight to Lucknow Tigerair launched its new 3x weekly service to Lucknow on 3 December 2015, signifying Tigerair’s sixth destination in India as well as Changi Airport’s 13th city link with the fast-growing country. Not only is Lucknow the capital city of Uttar Pradesh, which is the most populous Indian state, it is also an important cultural centre of India. Passengers on the inaugural flight were treated to a captivating performance of the Kathak dance in the gatehold room before their departure. The Kathak dance is one of the most renowned classical dances in India, and it was nourished and refined in Lucknow. Travel bloggers, radio station DJs as well as winners of preconducted lucky draws also joined the inaugural flight to experience the beauty of Lucknow for themselves and provided strong publicity for the service thereafter.
The Bara Imambara shrine, a prominent of icon Lucknow.
page 09
Networkgrowth
United launches San Francisco – Singapore non-stop in June 2016 On 29 January 2016, United Airlines (UA) announced plans to launch non-stop passenger services between Singapore (SIN) and San Francisco (SFO) in June 2016. The inaugural SFO-SIN flight will take off on 1 June, with the return flight departing from Changi Airport on 3 June. The daily service will be operated by a 252 seat Boeing 787-9 Dreamliner in a two-class configuration. The new service will be Changi’s only non-stop service to North America. United’s new flight schedule is specially timed to meet business travel needs. Business travellers will appreciate the early 7.15 am (local time) arrival into San Francisco to connect to more than 80 destinations throughout North, Central and South America as well as the Caribbean. Similarly, the SFO-SIN leg is scheduled to arrive at Singapore
Changi Airport at 6.45 am (local time) allowing North American travelers ample connection time to a plethora of destinations in the Asia-Pacific region connected to Changi. Westbound journeys will take 16 hours and 20 minutes while eastbound journeys will take 15 hours and 30 minutes, saving travelers up to four hours each way when compared to existing UA services transferring through Narita airport in Tokyo, Japan.
SINGAPORE AIRLINES launches Finnair Canberra, Wellington and Jetstar deepen Starting 20 September 2016, Singapore Airlines (SQ) will be commencing four weekly Singapore-Canberra-Wellington flights. Dubbed the “Capital Express", the new route will partnership be operated by a 266-seat Boeing 777-200 aircraft fitted with 38 Business Class seats and 228 Economy seats. The route will establish Changi Airport as Canberra’s first international in Singapore destination and Wellington’s first Asian city link. SQ’s new route will add Canberra and Wellington as Changi’s 9th Australian city and 3rd New Zealand city links respectively. The “Capital Express” will further strengthen SQ’s existing partnerships with Virgin Australia (VA) and Air New Zealand (NZ) with both carriers codesharing on the service. The flight schedules to be operated are as follows: Flight Number and Routing
Days of Operation
Time of Departure
Time of Arrival
SQ291 Singapore-Canberra
Tuesday, Thursday, Saturday, Sunday
23:00
08:35+1
SQ291 Canberra-Wellington
Monday, Wednesday, Friday, Sunday
9:50
15:05
SQ292 Wellington-Canberra
Monday, Wednesday, Friday, Sunday
20:15
22:05
SQ292 Canberra-Singapore
Monday, Wednesday, Friday, Sunday
23:30
05:50+1
Developing on previous interlining partnerships, Jetstar Asia and Finnair have launched new codeshare cooperation in Singapore. The partnership offers Nordic travelers greater options to 5 points in Asia Pacific via Singapore. Since 15 December 2015, Finnair’s codes have been added to Jetstar Asia flights to Penang, Kuala Lumpur, Phuket, Perth and Darwin. Additionally, Finnair has also announced an upgauge of its daily services from A343s to A350, increasing capacity to Singapore. Apart from greater connectivity choices, passengers have benefitted from the partnership with the conveniences of single-ticket itineraries, onward boarding passes at check-in, seamless transfers and through-checked baggage.
page 10
Networkgrowth
Air Mauritius establishes “Air Corridor” between Asia and Africa MK and CAG kicked off a slew of activities celebrating and promoting the Air Corridor on 15 March 2016 with an inauguration ceremony held right in the heart of Changi Airport. The event was graced by a high level delegation led by the Honorable Charles Gaëtan Xavier Luc-Duval, Deputy Prime Minister of Mauritius and Minister of Tourism & External Communications and Mr Khaw Boon Wan, Coordinating Minister for Infrastructure and Minister for Transport of Singapore. On 12 March 2016, Changi Airport Group (CAG) celebrated a significant development in its connectivity to Africa with the launch of three-weekly non-stop flights between Mauritius and Singapore by Air Mauritius (MK). The new non-stop services linking Mauritius and Singapore, operated with Airbus A330-200 aircraft, replaces the airline’s previous one weekly service via Kuala Lumpur, and marks a significant milestone in building a new Air Corridor connecting Africa and Asia. The launch of the non-stop service between Mauritius and Singapore comes on the heels of an agreement signed between MK and CAG to create the historic Air Corridor bridging Asia and Africa back in October 2015. The air corridor will offer passengers from Singapore new options to access several African destinations which Singapore is currently not connected to. These destinations include Antananarivo (Madagascar); Durban (South Africa); St. Denis (The Reunion Islands); Rodrigues Island, (Mauritius); and Nairobi (Kenya). This list of destinations will be increased from May 2016 when another two routes to Maputo (Mozambique) and Dar es Salaam (Tanzania) are opened by MK from their hub in Mauritius’ Sir Seewoosagur Ramgoolam International Airport.
That very same afternoon, a business seminar was conducted by the Mauritius Board of Investment where Singaporean investors were given a thorough introduction of the opportunities in Mauritius. The days following saw both Mauritian and Singaporean tourism industry representatives familiarizing themselves with what their respective destinations had to offer. A roadshow on 16 March 2016 introduced Singaporean outbound tour agents to MK’s services and Mauritius’ wide variety of natural, cultural and sporting tourism offerings, while Mauritian tour agents were introduced to Singaporean hotels, attractions and wide variety of cultural delights.
Similarly, Singapore will offer passengers travelling with MK connecting options to 196 different cities in Asia and the Southwest Pacific. This increases Mauritius’ connectivity to its 5th largest tourism source market, China, by 30 cities and 10th largest market, Australia, by 8 cities, while providing a gateway into 32 cities in Southeast Asia.
The Mauritius-Singapore Air Corridor inaugurated with a handshake between the Honourable Charles Gaëtan Xavier Luc Duval and Mr Khaw Boon Wan.
page 11
Networkgrowth
Changi deepens connectivity to China Singapore recently celebrated the 30th anniversary of establishing direct air links to China in 2015. Today, Singapore is connected to 32 cities in China with approximately 80 daily flight departures and arrivals between the two countries. Apart from first-tier metropolitan cities such as Shanghai, Beijing, Guangzhou, Shenzhen and Chengdu, Singapore is also connected to many emerging secondary cities such as Lanzhou, Yinchuan, Zhengzhou and Quanzhou. In 2015, Changi Airport recorded 4.9 million passengers to/from China, translating into year-on-year growth of +7%. In the same year, China also overtook Indonesia as the largest source of visitor arrivals by air to Singapore with 2.1 million Chinese visitors, registering a strong rebound of +22% against the backdrop of challenging macroeconomic conditions in 2014. Having identified Western China as an important driver of growth in the coming years, Changi Airport has been increasing efforts to widen and deepen its connectivity with this region. In March 2015, Changi Airport Group signed a Memorandum of Collaboration with Kunming Changshui International Airport, demonstrating both parties’ commitment to deepen their partnership through network and frequency expansions between Singapore and Kunming. In November 2015, the third governmentto-government bilateral project between China and Singapore was officially announced to be based in Chongqing. Named "China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity", this project serves to
Ribbon cutting ceremony in celebration of West Air’s first international service to Singapore featuring Mr Wong Woon Liong, Senior Advisor of Changi Airport Group (4th from left) and Mr Guo Hong, Marketing Director of West Air (2nd from right). Guests of honour included Mr Chen Xiao Dong, Chinese Ambassador to Singapore (4th from right), Mr Gan Thiam Poh, Member of Parliament in Singapore (3rd from right) and Mr Calvin Phua, Deputy Secretary (International) at Singapore’s Ministry of Transport (3rd from left).
enhance connectivity and drive the development of Western China. Four priority areas of collaboration have been identified: Financial services, aviation, transport and logistics, and information and communications technology. Following the announcement, a six-party Memorandum of Strategic Cooperation was inked on 8 January 2016 amongst Changi Airport Group, Chongqing Airport Group, Air China Limited Chongqing Branch, West Air, Chongqing Airlines and SilkAir. Under this MOU, both airports will be working closely with the airline partners to mount new flights and increase flight frequencies, not just between Singapore and Chongqing, but also to boost traffic via both hubs. For instance, the airports will support the airlines to develop connectivity from cities in Northwestern China (such as Urumqi, Xining and Hohhot) via Chongqing to Singapore, cultivating the aviation market between Singapore and relevant cities under China’s One Belt, One Road plan.
On the back of this MOU, West Air launched its very first international service to Singapore from its Chongqing base on 4 February 2016. The introduction of this new thrice-weekly service on a 180-seat A320 aircraft almost doubled the seat capacity between Singapore and Chongqing. In addition, Changi Airport also welcomed Sichuan Airlines on 25 January 2016 with an additional daily service from Chengdu. Two new links to Western China were also established in 2015 – Air China extended its daily Chengdu-Singapore service to Yinchuan, capital of the Ningxia Hui Autonomous Region, whilst Jetstar Asia launched 2x weekly services to Guiyang, capital of the Guizhou Province. Changi Airport is currently connected to seven key Western Chinese cities, namely Chengdu, Chongqing, Guiyang, Kunming, Lanzhou, Xi’an and Yinchuan. Passenger traffic between Singapore and these cities grew by +13% from 343,000 in 2014 to 387,000 in 2015.
page 12
FIRSTperson
GARUDA INDONESIA: 50 YEARS OF PARTNERSHIP IN SINGAPORE passenger traffic on the route up 9.4% last year. Apart from transporting passengers, such key services also enhance economic, business, tourism and cultural activities between both countries.To embrace increasing demand, Garuda Indonesia introduced a 10th daily flight in December 2014, becoming the frequency leader for the Jakarta-Singapore route.
An exclusive interview with Pak Sentot Mujiono, Regional Vice President Asia Region
Q
: Can you share a bit more on your background and your affinity for Singapore? I have witnessed the growth of Garuda Indonesia for 29 years. I started in the reservations control department, moved to Sales and Marketing, then to Sales Manager Jogjakarta, General Manager for Beijing and Shanghai, and finally to the current position of Vice President Asia Region. I would like to stay in Singapore longer and witness more of our company’s growth. On this occasion I would also like to congratulate Changi for being awarded the World's Best Airport for the 7th time. Without a doubt, Changi Airport is the best and most efficient airport in the world. The plane-to-cab journey is always within 20 minutes, including luggage collection. In these 2 years, I have adapted well to Singapore’s environment, weather and food - which is almost as good as home. My family is also doing well here.
Q
: What are some of the key highlights of Garuda Indonesia’s operations in Singapore over the past half century? Over the last 50 years, Garuda Indonesia has carried 32 million passengers, with around 8.2 million passengers over the last 10 years. The Jakarta-Singapore route is one of the most important, busiest and fastest growing routes in Garuda Indonesia’s network with
Garuda Indonesia now operates over 102 weekly direct flights from Singapore to Jakarta, Bali, Surabaya, Amsterdam and London Heathrow with further plans to expand our market presence through new routes to Medan and Bandung. Our growth has been forged hand-inhand with key industry partners who have supported us through the years. On behalf of Garuda Indonesia, I would like to express our sincerest thanks to CAG for your excellent service towards our passengers and I have no doubt with CAG’s continued support, Garuda Indonesia’s latest developments will meet the expectations of both Indonesians and international customers alike.
Q
: Congratulations to Garuda Indonesia on attaining the Skytrax 5-star Airline Award and Best Cabin Crew Award once more. To what extent do these awards represent the focus of Garuda Indonesia’s growth plans and what are the airline’s key focus points looking forward? Thank you and we are honored to have received such a prestigious award. These awards establish Garuda as an industry leader, demonstrating the success of our aggressive "Quantum Leap" expansion strategy launched in 2014 to enhance our competitive edge to meet future challenges. The programme focused on seven drivers through domestic travel; international travel; addressing low-cost travel through our subsidiary Citilink; expanding our fleet; rejuvenating the brand; improving cost discipline; and getting greater productivity from our staff. Now, we are ready to soar into the “Sky Beyond 2020” company expansion
program which focuses on 3 core strategies - company group synergy, effectiveness and efficiency, and caring service. Our success stems from forging strategies that compete beyond price points to deliver valued service to our passengers. The dedicated Jakarta-Singapore service localizes elements of the signature onboard experience such as meal options and offers preferred baggage handling services with a dedicated belt in Soekarno-Hatta International Airport, guaranteeing a seamless travel experience for passengers arriving from Singapore. As a national flag carrier, Garuda Indonesia has always been committed to help boost the national tourism industry. To commemorate the 50th year of services to Singapore and to thank our loyal customers for their support, we have cooperated with the Ministry of Tourism Republic of Indonesia to proudly present the ”Wonderful Indonesia Travel Pass”, a travel pass product that provides simplicity and affordable prices to travel around Indonesia with Garuda Indonesia.
Q
: With more new products and network in the pipeline, what can passengers of Garuda Indonesia look forward to? In line with the “Sky Beyond” development program and our mission to become an airline that focuses on the needs and desires of our customers, we have revitalised our fleet with our latest B777 and A330-300 aircraft in February 2016. Starting October 2016, the latter will be servicing the Jakarta-Singapore route with its special feature, the "Super Diamond Business Class Seat". This special feature will offer distinct service and comfort for all our passengers. Service experience is what sets us apart by putting forward Indonesia’s best across all levels. It has been an extraordinary 50 years that would not have been possible without our loyal passengers and business partners’ dedication and support. Once again, we look forward to a prosperous and collaborative future ahead with Changi Airport Group.
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events
Garuda Indonesia Celebrates their 50th Anniversary in Singapore On 26th January, Garuda Indonesia launched a 6-month long celebration to mark their 50th Anniversary of operations to Singapore. To commemorate this auspicious occasion, CAG and Garuda Indonesia jointly organized an event in Terminal 3 to welcome the arrival of flight GA826. Graced by Ibu Handayani, Director of Commercial, Garuda Indonesia and Mr Wong Woon Liong, Senior Advisor, CAG, the event highlighted the strong partnership between Changi Airport and Garuda Indonesia. The brightly lit backdrop featured icons of Indonesia, Singapore, Garuda Indonesia and Changi Airport. Passengers arriving on GA826 were welcomed by Singapore’s traditional Chinese lion dance performance to usher in the new milestone of our long-standing
CAG Senior Advisor Mr Wong Woon Liong marks the special occasion with Ibu Handayani, Director of Commercial Garuda Airlines.
collaboration. This was followed by a Nasi Tumpeng Cutting Ceremony, a Javanese tradition, to symbolize CAG’s gratitude for Garuda Indonesia ‘s continued operations to Singapore over the past half century and hopes for many more successful years ahead. CAG extends our heartiest congratulations to Garuda Indonesia on this auspicious milestone of their 50th Anniversary in Singapore.
Singapore and Indian Travel Trade Celebrate the Milestone of One Million Tourist Arrivals to Singapore from India from India is a 7.4% increase over the year before. To mark this occasion, the Singapore Tourism Board (STB) partnered with the Indian travel trade on a series of four exciting networking engagements in Mumbai, New Delhi, Bangalore and Chennai over the course of two weeks.
2015 was a year of celebrations between Singapore and India – it was the year of Singapore’s Golden Jubilee and when the two nations celebrated 50 years of diplomatic ties. 2015 was also the year Singapore welcomed more than one million Indian travelers to its shores. This landmark achievement in visitor arrivals
In New Delhi, a Singapore contingent led by STB, participated in the 23rd edition of India’s leading travel tradeshow event - South Asia Travel and Tourism Exchange (SATTE), from 29-31 January 2016. Gathering good responses from the Singapore travel trade’s previous years of participation, this year, STB, supported by CAG, organised and coordinated Singapore’s participation in SATTE 2016. Joining STB and CAG at the Singapore booth were 24 other trade partners
including airlines, attractions, inbound travel and hotel operators – the strongest Singapore contingent at SATTE yet. Collectively, the comprehensive Singapore representation at the booth transformed it into a one-stop-shop travel information centre for the Indian travel trade. With more than 20,000 attendees to the tradeshow, a significant 28% increase in visitorship over last year’s event, Singaporean partners were also given abundant opportunities to network and discuss business opportunities with potential partners. As the Singapore and India travel trade revel in the positive beginnings brought on by a great 2015, both sides are even more committed to fostering strong ties and businesses in the year ahead.
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aircargo
GAINING INSIGHTS ON SOUTHEAST ASIA’S AIR CARGO LANDSCAPE AT LET’S TALK CARGO! 2016 CAG organised the annual Let’s Talk Cargo! 2016 conference on 25 February 2016. The forum, now in its 7th edition, attracted more than 160 air cargo and logistics stakeholders, airlines, ground handlers, freight forwarders and shippers to exchange insights and discuss on the development on the air cargo industry. In addition to the sharing on the air cargo outlook for 2016 and the supply chain requirements from regional shippers, the 2016 edition of Let’s Talk Cargo! also covered the mid-long term impact of China’s One Belt, One Road Strategy and the effects of the Trans Pacific Partnership (TPP) on Southeast Asia’s air cargo landscape. The 1-to1 meeting session is also an on-going feature of the conference, allowing airlines and logistics stakeholders to discuss potential partnerships at Changi Airport, and for industry players to establish contacts, forge new partnerships and explore growth opportunities.
Ms Phau Hui Hoon, Senior Manager Cargo and Logistics Development addresses industry representatives in opening introduction.
SOFT AIRFREIGHT DEMAND IN THE SHORT TERM, BUT PROSPECTS FOR MID /LONG TERM REMAIN BRIGHT Aviation consultants Seabury shared that the majority of global trade lanes posted declines in 2015, with the exception of the Transpacific lane which saw healthy growth due to the various Japanese automotive recalls and industrial action at ports along the United States West Coast. Consequently, global air trade saw a 0.7% decline in first eleven months of 2015. From a commodity perspective, fashion products, flowers and telecommunications were key contributors of growth for 2015, while computers, capital equipment and automotive shipments saw the largest decline. Turning to pharmaceutical cargo, Ms. Christine Tan, Regional transport Manager of AbbVie shared on the increasing pressure to lower the cost of transportation. Concurrently, with the advancement of pharmaceutical products, there is a greater need for quality assurance and customization of cold chain product as the new products are highly sensitive to temperature fluctuations. Zooming to e-commerce sector, both Mr. Michael Tan from Boston Consulting Group and Mr. Ryusuke Shinagawa from Rakuten shared that the potential for growth of e-commerce remained bright. However, existing challenges such as high delivery cost and lack of proper infrastructure will limit the growth rate of e-commerce.
LET’S TALK CARGO! 2016 POLLING RESULTS A poll was conducted during the event which offered various insights into the latest sentiments of the air cargo industry:
Majority of the airlines, GHAs and integrators were interested in growing transhipments.
Most participants had greater hopes for 2016 with 62% of attendees expecting better cargo performance as compared to 2015.
Attendees identified pharmaceuticals and e-commerce as key commodities in 2016.
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aircargo
CHANGI AIR CARGO COMMUNITY: ASIA’S FIRST CEIV COMMUNITY FOR PHARMACEUTICAL HANDLING
Left: Mr Yam Kum Weng (CAG) and Mr Conrad Clifford (IATA) at the launch of the IATA CEIV Pharma community initiative.
Stakeholders of the CEIV Community in Changi Airport, which included IATA, CAAS, WDA, dnata Singapore, Global Airfreight International, Expeditors Singapore, CEVA Logistics Singapore and Schenker Singapore.
On 10 March 2016, Changi Airport Group announced that it is the first airport in Asia, and third in the world, to host a community of cargo partners in undergoing certification for the IATA Center of Excellence for Independent Validators for Pharmaceutical Handling (CEIV Pharma). Under the community approach, at least one company from each segment of the air cargo supply chain will undergo certification, strengthening Changi’s capabilities to handle pharmaceutical cargo.
With a CEIV certified community in Changi Airport, facilities, equipment, operations and staff along the entire air cargo supply chain would comply with the highest standards, regulations and guidelines expected from pharmaceutical manufacturers, strengthening Singapore’s position as the preferred hub for handling and storage of pharmaceutical cargo.
This timely development comes as 2018 sees Asia poised to lead the global growth in cold-chain logistics with an estimated annual value of US$1 billion. In 2015, Changi Airport handled more than 223,000 tonnes of perishable cargo but with annual handling capacity of up to 325,000 tonnes, Changi is well-positioned to handle the rapid growth in perishable cargo expected for airports in Asia.
The six companies involved in the recent certification process included Singapore Airlines Cargo, dnata Singapore, Ceva Logistics, DB Schenker, Expeditors Singapore and Global Airfreight International. This is in addition to SATS Coolport being the first facility in the world to attain the IATA CEIV Pharma certification. What is IATA CEIV Pharma The IATA CEIV Pharma is an extensive certification that complies, or even supersedes, many existing pharmaceutical standards and guidelines such as the European Union’s Good Distribution Practice (EU GDP), World Health Organization Annex 5. For instance, companies undergoing this certification process will have to maintain a cargo hold temperature settings of between 10-25 degrees Celsius and ensure appropriate handling from tarmac to loading and unloading. Under the programme, companies will have to undergo training, as well as an assessment of their facilities and processes by independent, IATA-certified auditors to satisfy the strict requirements on pharmaceutical handling before receiving the certification.
IATA CEIV Pharma Community – An air cargo supply chain approach Airlines
Ground handlers
freight forwarders
page 16
changinews
Changi Airport’s Facebook page hits 1 million fans Facebook is a valuable asset to CAG’s On 14th January 2016, CAG welcomed its 1 millionth fan to the Changi Airport Facebook page with great delight. Since the humble beginnings of Changi Airport’s Facebook page in August 2009 (with 6,000 fans at the end of that year), CAG has come a long way, more than doubling its fan base every year. Today, CAG reaches out directly to a truly international fan base, uniting fans who love Changi from around the world. Through a myriad range of vibrant visuals, fun contests and video content, CAG’s efforts to engage fans daily have been well-received, even being featured regularly on various media online.
communications and brand building efforts. Moving forward, the airport seeks to continue growing the platform to engage and delight fans while providing prompt information and grow brand affection. To achieve this, one key effort in the coming year will be to build and cultivate a pool of Changi advocates to support campaigns via their voice on social media.
Early check-in made easy for passengers at Singapore Changi Airport More passengers departing from Singapore can now enjoy early check-in with a range of airlines at Changi Airport. Since the start of the year, common early check-in counters have been set up at Terminals 2 (Row 7) and 3 (Row 10), and an early check-in lounge at Terminal 1 (near Row 5), to facilitate early check-in. The counters and the lounge – open from 6.00am to midnight daily – serve as a common one-stop service point for passengers travelling with 23 participating airlines. Check-in is available from 12 or 24 hours before the flight’s scheduled time of departure (STD), depending on the airline. The 23 airlines serve more than 3.7 million passengers a year, or 13 per cent of passengers departing from Changi Airport. Besides the airlines served at the common counters, another 25 airlines separately offer an early check-in service at their own counters. Including these, early check-in of at least four hours before STD is presently available to more than 80% of departing passengers. Changi Airport Group (CAG) is working with airlines and ground handlers to increase this figure.
The provision of early check-in options will benefit passengers, especially visitors to Singapore who may have to check-out of their hotel rooms hours before their flight. Earlier entry into the transit areas also means more time for passengers to enjoy Changi’s award-winning facilities.