Business & Operations Review (Part 2) - Changi Airport Group

GROWING THE AIR HUB
1. CAG and Hong Kong Airlines management together with Hong Kong celebrities
at the airline’s inaugural launch event in January 2011
2. Capoeira and samba performers at Changi’s “Fly to Brazil” carnival held to
commemorate Singapore Airlines’ thrice-weekly flights from Singapore to Sao Paulo
3. Coolport@Changi, an airfreight terminal dedicated to handling perishable cargo
4. The Air Cargo Express Hub at Changi was unveiled by management
representatives from CAG, FedEx, EDB and CAAS
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Partnering for mutual growth
CAG is committed to working closely with its partners to
create win-win opportunities for growth. One such example is
the Jetstar Group’s decision to base its Asian hub at Changi.
Arising from this, Jetstar launched its first low-cost long-haul
services from Singapore to Melbourne and Auckland,
in December 2010 and March 2011 respectively.
The Changi Airport Growth Initiative (CAGi) was introduced
in January 2010 to enhance CAG’s partnership with airlines
and other airport stakeholders to drive Changi Airport’s
growth. Besides incentivising airlines to launch new routes
and increase frequency and capacity, CAGi also funds
joint marketing programmes with airlines to stimulate travel
demand and thicken routes.
During the year, CAG and Turkish Airlines collaborated on
networking events and trade shows in Singapore and Turkey
to promote the airline’s non-stop Singapore-Istanbul service.
The joint efforts resulted in the Turkish flag carrier’s expansion
of its services. Higher demand has also seen Turkish Airlines
use a larger aircraft on the route.
CAG also collaborated with five Chinese carriers (Air China,
China Eastern Airlines, China Southern Airlines, Shenzhen
Airlines and Xiamen Airlines) and several outbound travel
agents to promote travel to five Chinese cities – Dalian,
Hangzhou, Shenyang, Wuhan and Xi’an. The campaign
in Singapore’s major Chinese language dailies offered
promotional travel packages and was well-received with the
travel agents reporting significantly higher sales.
Tapping on the robust demand for short getaways among
Singapore residents, CAG highlighted the allure of regional
destinations in a marketing campaign to promote weekend
escapades. With support from AirAsia, Firefly, Jetstar, SilkAir
and Tiger Airways, as well as the Tourism Authority of
Thailand, the campaign raised awareness of Bandung,
Chiang Mai, Hat Yai, Ipoh, Jogjakarta, Krabi, Kuantan and
Shantou, and encouraged Singapore residents to experience
new holiday experiences at these locales.
CAG’s partnership approach also encompasses governments
and regulatory bodies. A Memorandum of Understanding
was signed with the Henan Civil Aviation Development and
Construction Committee in November 2010 to develop air
connectivity between Singapore and Henan’s cities. Shortly
after this, in March 2011, Changi welcomed Singapore’s first
air link with Henan Province when Xiamen Airlines started a
daily service linking Singapore to Zhengzhou, the capital
of Henan.
Building a world-class air cargo hub
Buoyed by Singapore’s extraordinary economic recovery in
2010, airfreight movements at Changi Airport rebounded
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