Distinguished Guests

Ladies and Gentlemen

Changi has been a resounding success

1          I am happy to be here today amidst the hustle and bustle of Changi Airport, a global crossroads and meeting place of different languages and cultures. Changi Airport has come a long way from operating just a single passenger terminal in 1981 to becoming a mini airport city today.  The airport achieved over 35 million passenger movements in 2006.  Changi’s passenger handling capacity will be further increased with the opening of Terminal 3 in January next year.  The airport’s growth is synonymous with Singapore’s economic development and it has helped to put Singapore on the world map.  The iconic Changi Control Tower for instance is one of the most widely-recognised symbols of Singapore. 

2          Thanks to the dedication of the management and staff of the Civil Aviation Authority of Singapore (CAAS), Changi has seen constant quality improvement and innovations.  Changi is emblematic of Singapore’s culture of excellence. 

Changi is where it is today because of bold decisions made in the past

3          While constant improvement is necessary, it is also important to make major changes at strategic junctures.  Indeed, Changi owes its genesis to a decision that was made back in the 1970s, when the government chose to shift Singapore’s international airport from Paya Lebar to Changi.

4          What seems obvious today was then a daring decision.  Paya Lebar was facing capacity constraints and the easy way out would have been to build a second runway at the airport.  Building another runway would mean lower land acquisition costs and fewer uncertainties.

5          On the other hand, re-locating the airport to Changi would cost over $1 billion, a princely sum in the 1970s.  There were also engineering challenges to building a modern airport at Changi.  Moreover, when then-Prime Minister Lee Kuan Yew gave the go ahead for Changi in 1975, Singapore was still reeling from the aftershocks of the 1973 oil crisis and the fall of South Vietnam. 

6          Despite the odds, the decision was made with the vision of a vibrant hub for air travel.  The rest like they say was history. 

7          In tandem with the development of Changi airport, the Civil Aviation Authority of Singapore (CAAS) was formed as a statutory board in 1984 to replace its predecessor, the Department of Civil Aviation (DCA).

Soaring to greater heights

8          Having got Changi off the ground, we are now ready to soar even higher.

9          Hitherto CAAS has been performing two distinct roles under one organisation -- one as a regulator of civil aviation matters and another as an airport operator.  After careful consideration, the government believes that it is necessary to corporatise Changi Airport and to re-structure CAAS’ existing regulatory and strategic functions under a new regulatory body.

10        There has been a paradigm shift in the airport sector. Airports are increasingly seen more as a business rather than basic transport infrastructure. Corporatisation will enhance Changi Airport’s ability to compete in this changed landscape.   In being more nimble the new entity will further strengthen Changi’s position as a premier air hub.  Currently, CAAS has a dedicated subsidiary for overseas ventures but more can be done to market Changi’s expertise as a global airport operator overseas.  Just as Schiphol and Fraport Airport Groups have developed global brand names through their airport management and consultancy expertise, we will leverage on Changi Airport’s reputation to develop an international presence. Further, CAAS’ most valuable asset is its pool of experienced and dedicated officers.  This limited pool of talent is highly valued and is sometimes pursued by the competitors of Changi.  Through this corporatisation exercise, Changi Airport will have greater flexibility to attract and retain top talent to compete with global airport operators.  More career options would be made available.  While some may choose to focus on regulatory work, those who want overseas stints will have more opportunities as the new corporatised entity ventures overseas.

Seek everyone’s cooperation

11        Corporatisation is a complex process.  We will plan carefully and explore all possible options.  The entire process is expected to take 18 to 24 months.   We will be appointing a consultant to assist in the corporatisation of Changi Airport and to help the regulatory body design a new regulatory regime.

12        We will consult widely. A series of feedback sessions has been planned for CAAS staff and stakeholders in the aviation industry throughout the process.  We firmly believe that to be successful, we need to work together with our staff and customers, to ensure the best possible operating structure for Changi ahead.

Conclusion

13        Changi Airport has done well and continues to excel. But in whatever we do, we should never take anything as a permanent advantage.  We must always be willing to change to stay ahead of the competition. So we will corporatise Changi Airport. Just as the decision to re-locate the airport to Changi paid off for Singapore, I am confident that this change will better prepare us to soar to greater heights.

14        Thank you.