Three Ideas For Singapore Air Hub

1.       Singapore Inc. Mindset

The Emirates Group adopts a ‘Dubai Inc.’ mindset with its many company brands under the group comprising airline, ground handling & food catering, tour operator & events management, hotels & resorts, retail, F&B etc. This means there is monopoly in the supply chain e.g. all airlines in the airport must go through the only one ground handler and food caterer. 

The Singapore system chose to move away from this model and intentionally have more players to compete for greater efficiency.  For instance, Singapore Airport Terminal Services (SATS) used to be part of the Singapore Airlines Group but was divested from SIA in 2009 and now there are SATS and dnata.  Swissport started in 2005 and left four years later with losses of more than $50 million. ASIG started in October 2014 but has terminated its contract with Jetstar, its first and only airline customer.  Nonetheless, industry players agree there is still room for three ground handlers in this sector.

So, can we follow the Emirates Group and have a ‘Singapore Inc.’ mindset for all companies under a single entity?  We doubt so.  This system of having corporatized and private companies with free market competition has been in place for all sectors of the economy, and it will continue.  It will not change in Singapore, unless there is a crisis, an industry player commented.

In fact, The Straits Times recently reported on 20 May 2016 "Who will pay for and run Changi Airport Terminal 5" that the Government is rethinking how the airport could be owned and run, including alternative models for the ownership of new airport facilities. This is because the development cost is expected to be tens of billions, as the airport prepares to handle 135 million passengers by the time T5 is completely ready. Some options being considered include future terminals being owned and operated jointly by the public and private sectors, noting that there are arguments for and against any model. 

2.       Beyond An Air Hub

The key ingredient to be a hub, is to increase connectivity; the more connections, the more busy the hub. An idea was raised to look beyond an air hub e.g. Hong Kong airport links ferries to Macau and Zhuhai. Similarly the Singapore airport can consider ferry links to Batam, Bintan, Desaru and rail links to Johore.  The ViaMilano The Flight Connection provides a service by Milan airports to help passengers find the best travel solution.

3.       The Changi Experience

Singapore Changi International Airport was recently named the World’s Best Airport for the 4^th consecutive year and has been in the top three for the last fourteen years.  The ‘Changi experience’ is about being able to “anticipate what your needs are when you need them.” So Changi has to continue to enhance passenger convenience and provide services that are beyond expectations.

… to be cont’d