Past achievements don't guarantee future success
By VEN SREENIVASAN
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(SINGAPORE) The restructured Civil Aviation Authority of Singapore (CAAS) and the newly corporatised Changi Airport Group will have to work together to ensure that Singapore retains its stature as a premier aviation hub.
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| New entities for a new era: MM Lee arriving at yesterday's launch of the restructured CAAS and the newly corporatised Changi Airport Group |
Delivering his keynote address at the launch event of the two separate entities yesterday, Minister Mentor Lee Kuan Yew noted the numerous achievements of Changi Airport and CAAS.
But he said it would be a mistake to believe that past achievements would guarantee future success.
'Competition amongst air hubs is increasing with new mega-airports in the region like the Beijing Capital International Airport, Shanghai's Pudong Airport, Incheon International Airport and Dubai International Airport,' he said. 'Our competitors are catching up, with some beginning to equal, if not outperform, us in certain areas.'
He pointed out that the government decided to corporatise Changi Airport in 2007 to meet these and other challenges ahead.
'Airports are run like business entities. They aim to be regional hubs. Airlines are re-examining their business models, especially after the proliferation of low-cost carriers in the region. Changi Airport, SIA, SilkAir and low-cost carriers Tiger Airways and Jetstar Asia Airways have to improve the way they operate to compete in the international premier league.'
He added that the corporatised Changi Airport Group must have the drive and initiative to capitalise on new opportunities and meet increasing competition.
'As a corporation, it is better able to aggressively pursue overseas business ventures and investment opportunities. It has the advantage of Changi as a brand name to enlarge its international presence. This will give greater flexibility to respond quickly to changes in the industry and in the global business environment. It will also attract and retain top talent to compete with global airport operators.'
Meanwhile, the restructured CAAS will have better focus as an industry regulator, with greater capabilities to develop new areas for vibrant growth.
'It must work closely with the corporatised Changi Airport Group to promote Singapore as an air hub; and to plan the future expansion and development of Changi Airport infrastructure,' Mr Lee said.
Tracing the history of Singapore civil aviation growth, Mr Lee said that the decision in 1975 to write off the $800 million Paya Lebar Airport and build the $1.5 billion Changi Airport was 'one of the best investments' Singapore has ever made.
He recalled that he was in the US at the time when South Vietnam had just fallen to the communist north. It was a time of pessimism, he recalled.
'We could either have taken an optimistic view and gone ahead, or been pessimistic and stayed put (in Paya Lebar),' he said.
Mr Lee decided Changi had to be built.
'If I had not intervened and we had built the second runway at Paya Lebar Airport as our foreign experts recommended, Singapore's airport could not have become an air hub. It was one of the best decisions I ever made.'
Paya Lebar, which is now operated by the air force, handled 10 million passengers in 1980. Last year, Changi - which serves over 180 airlines and has won over 300 global awards - handled 38 million.
Mr Lee said that although the aviation industry is facing a slump, recovery will come. And when it does, Singapore's aviation sector must be ready for the new challenges.
'The journey of the old CAAS concludes today,' Mr Lee said. 'But the vision, courage and dedication of its people will continue in the two new entities - the restructured CAAS and the corporatised Changi Airport Group. When they pull together for the common goal of achieving the best for Changi and Singapore, you will take civil aviation in Singapore to ever greater heights.'
The restructured CAAS will be helmed by a team led by chairman Lee Hsien Yang, while the Changi Airport Group will be led by a team headed by chairman Liew Mun Leong. Almost 1,000 guests attended yesterday's launch event at the new Changi Terminal 3.
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