Changi Airport Branding and Promotion

This assignment examines strategies to promote Changi Airport's brand within Singapore. It suggests incorporating an airport museum and flight simulators to educate citizens about aviation history, ultimately fostering a stronger sense of national pride and awareness of the airport's significance.

Running head: CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC
GROWTH
Changi Airport and Its Contribution to Economic Growth
Name of the Student
Name of the University
Author Note

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
Executive Summary
The purpose of the report is to evaluate the operation and management system in one of the
leading international airport, Changi Airport and its important role in Singapporean economic
development. The report further analyses the challenges faced by the Singaporean airlines
and also elaborate the future planning and strategy to overcome the same. Having analysed
the industry, the report concludes with a clear understanding of the policies undertaken by the
Singapore government and also provide recommendation to improve the same.

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Operation and Management in Singapore Changi Airport.....................................................3
It’s Role in Singapore Economic Development.....................................................................4
The economic contribution of Changi Airport to the Singapore economy............................5
The fierce competition faced by the Changi Airport..............................................................5
The future planning and strategies.........................................................................................7
Government policy in helping this sector...............................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
Introduction
Changi Airport, Singapore’s main civilian airport is located at the eastern side of Singapore is
famous for its superior business performance and providing excellent passenger experience. In fact,
the world’s seventh most active airport is named as the Skytrax’s World’s Best Airport from the year
2013 to 2017 (Mot.gov.sg, 2017). Till now Changi airport has received a total of 24 awards in the
period 2009-2010. The report analyses the management and operations of Changi Airport and its role
in the economic development of Singapore. In the next section, the report discusses the economic
contribution provided by this International airport and the competition it faces over time. In this
context, the report further analyses the future planning and strategies undertaken by Changi Airport
and also provide remedial actions taken by the respected Government to help them overcome this
problem.
Discussion
Operation and Management in Singapore Changi Airport
Changi Airport operates 365 days a year and their teams operate implacably to
provide an excellent tension-free experience to the passengers. Apart from that, they provide
a cluster of luxurious and unblemished facilities starting from elegant movie theatre and
luxurious lounges to gaming and recreation zones. They design passenger terminals in such a
way so that it can augment the passenger experience. In this regard, they have introduced Fast
and Seamless Travel Initiatives or FAST initiative that help to automate bag drop machine
with face recognition technology and self check-in and out facilities to the passengers. In
2015, Changi Airport has introduced the above facility where passengers can self print their
boarding passes and luggage tags on their own (Changiairport.com 2017).
.

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
Apart from that, their management teams are responsible for many important and
critical tasks related to the taxiways, runways and aprons which includes accidents and safety
analysis, lessen the illegal work practices inside the airport terminal, risk management
practices and many other (Halford 2016). Along with this, they are equally responsible for
airplanes take off and landing at this international airport (Lawton 2017).
It’s Role in Singapore Economic Development
Changi Airport has the significant role in Singapore economy. According to the IATA
source in 2010 data, the country had 92 routes that connect Changi International Airport to
the other international airports around the world (Changiairport.com 2017).
Out of these, 20 routes were connected to Singapore to the other parts of the world consisting
of 10 million inmates with an average 5 international flights a day. In fact, this prevalence is
quite higher in the major economic destinations (Changiairport.com 2017). In recent days, the
improvements in connectivity have lessened the air transport services and it has fallen to 1%
in the last four decades. Real cost has been lower around 2.5% in the last 2 decades
Image 1: Passenger Movements At Changi
Airport Source: Lawton 2017

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
(Mot.gov.sg, 2017). Along with this benefit, other economic benefits can be visualized
through their long-term achievement in the economy.
The economic contribution of Changi Airport to the Singapore economy
As per the report published in 2014, Changi Airport has served around100 airlines to
270 major economic destinations in 60 different countries (Mot.gov.sg, 2017). They also
partnered with Singapore Airlines (SIA) and be able to make onward flights for domestic as
well as international destinations. In 2013 National Day Rally, the then prime minister Lee
Hsien Loong argued that Changi Airport contributed around 163,000 jobs and 6% of the
Singapore economy (Homsombat, Lei and Fu 2014). The study also showed that in 2014,
passenger rates had been increased to 0.7% compared to the last year (Homsombat, Lei and
Fu 2014). However, with the growing competition of various other Southeast airlines, Changi
Airport needs to be efficiently modified in the upcoming days.
In 2015 budget report, logistics and supply chain management has been identified as
the major growth sector in near future. This is the major reason, Changi Airport plans to build
several air hubs and widen their range of consumer services which are important for their
business in recent future (Lee and Worthington 2014).
Image 2: The countries with the highest number of cities served by flights from
Source: Homsombat, Lei and Fu 2014

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
The fierce competition faced by the Changi Airport
Changi Airport’s brand name attracts foreign investors and consultancy firms to
invest more in that sector and turn out businesses to the next level. In this regard they are
encountered with several projects from the emerging economies like China, India, Middle
East and many others (Homsombat, Lei and Fu 2014). This drastic increase in investment
augmented its revenue from more than $18 million in 2012-13 to $41 million in 2015-16.
However, this hike in revenue is associated with the contested assets which are sought by
national pension funds, international funds and sovereign wealth funds, loss in foreign
exchanges, and huge operating costs that include capital-induced taxes. This led to their
revenue to drastically down to $6 million in the same year.
When it comes to competition, Changi Airport is not as advanced as Incheon (Seoul) or
Schipol (Amsterdam).
Image 3: Changi Airport 2015/16 Revenue Mix
Source: Graham 2013

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
When it comes to the air hubs, Changi has ranked fifth compared to the other
international airports. The reason is that low-cost carriers like AirAsia, Jetstar and Tigerair
extending their capacity by extending the aircraft seats (Graham 2013). Changi should
increase its air hub to do well in the market. As low cost carriers are expanding continuously
in Asia, this particular airport can extend their positions to megahubs in recent years which
are significant in global airlines and provide customer satisfaction in terms of providing more
scope for ticket booking, desired destinations. Another major development by all the
significant airlines is the non-stop flight from the one destination to the other that misses out
Changi as the internal route. For example non-stop services are provided by Chinese airlines
from China to Australia.
As compared to Changi, Amsterdam’s Schipol has most effective rail connection.
They also provide outside terrace facilities with airport library including specially designed
wing chair. On the contrary, Northern Kentucky International airport which ranked as first in
Image 4: Asia’s top air hubs
Source: Heracleous and Wirtz 2012

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
the United States as per Sytrax report has an elegant art decorated mosaics. Copenhagen
airport is listed as one of the safest airport around the world. On the other hand, Incheon
International Airport is famous for displaying their Korean culture that spans around 5000
years of Korean history with ice-skating rink and free spa therapy (Graham 2013). All of the
above mentioned facilities set the Changi Airport to be more competitive compared to the
other airports.
The future planning and strategies
Changi International Airport, the world’s one of the best airports has already started
taking their expansionary strategy in order to preserve their caption. Recently, they formed a
three-year partnership with Singapore Airlines and Singapore Tourism Board to promote
their country as a lucrative tourist destination. Together they are planning to invest $33.75
million for their business expansion (Heracleous and Wirtz 2012). This partnership has also
increased the Free Singapore Tour. The speciality of this program is to offer a free view of
Singapore’s offering to the international passengers. Apart from that, this partnership has also
enhanced the passengers experience in the country. This partnership further strengthens in
developing its home base in Changi.
Singapore’s Changi Airport is planning to extend its capacity of around 135 million
every year by 2025 by creating Asia’s leading air hubs. Changi Airport is also planning to
develop Changi East in association with terminal 5 which will be the world’s largest terminal
(Bo et al. 2012). are Terminal 5 is expected to connect with terminal 1, 2 and 3 in order to
expand their operations between different terminals. Along with that, as per their official
report, they are soon planning to introduce third runway by 2020 and expected to complete
their fourth terminal by the end of this year (Bo et al. 2012). On the contrary, a joint
collaboration between Changi Airport and CapitalLand is going to start in 2018 near terminal
1 (Bok 2015). Besides this, they are also planning to extend their capacity to 1.4 billion

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
which includes luxurious hotels, indoor waterfall and recreation zones along with luxurious
dining and shopping centre and are expected open in 2019 (Pearson and Merkert 2014).
Government policy in helping this sector
The finance minister of Singapore government Mrs. Teo has risen the government’s
planning to share the entire investment cost of Changi Airport between them and the
government and of course with those who are capable of using this facility (Castro and
Lohmann 2014). Government has undertaken this initiative in order to make their economy to
be more competitive compared to the rival airports including Amsterdam, Hong Kong, China
and Korea (Bok 2015). In this context, the Singaporean government is planning to spend 90%
of the cost associated with the development of Changi Airport as government can understand
its importance in world economy (Castro and Lohmann 2014). However, the respected
government should also involve some other private sector involvement in the Changi East
project in order to utilize their resources efficiently (Bo et al. 2012).
On the other hand, in 2003, a bilateral agreement has been started between Australia
and Singapore known as the Singapore-Australia Free Trade Agreement (SAFTA) (Bok
2015). This bilateral relationship creates an opportunities in international trade and
investment in both the Australia and Singapore.
Conclusion
Changi Airport is better known for retail, dining and education. Although many
people in Singapore are not at all aware of this international airport as it is known to the
foreigners. Therefore, in order to promote the brand name within the country, they should
incorporate airport museum so that students could visit there for learning new things. On the
hand, they can introduce flight stimulator on the terminal terrace so that visitors can be able

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
know the aviation history of Singapore. These actions can help their citizen to know a lot
more about their aviation history at a larger scale.

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
Reference
Bo, M.W., Chang, M.F., Arulrajah, A. and Choa, V., 2012. Ground investigations for Changi
East reclamation projects. Geotechnical and Geological Engineering, 30(1), pp.45-62.
Bok, R., 2015. Airports on the move? The policy mobilities of Singapore Changi Airport at
home and abroad. Urban Studies, 52(14), pp.2724-2740.
Castro, R. and Lohmann, G., 2014. Airport branding: Content analysis of vision
statements. Research in Transportation Business & Management, 10, pp.4-14.
Changiairport.com. 2017. Changi Airport. [online] Available at:
http://www.changiairport.com/ [Accessed 17 Nov. 2017].
Graham, A., 2013. Understanding the low cost carrier and airport relationship: A critical
analysis of the salient issues. Tourism Management, 36, pp.66-76.
Halford, C.D., 2016. Implementing Safety Management Systems in Aviation. Routledge.
Heracleous, L. and Wirtz, J., 2012. Strategy and organisation at Singapore Airlines: achieving
sustainable advantage through dual strategy. In Energy, Transport, & the Environment(pp.
479-493). Springer London.
Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines
strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and
Transportation Review, 63, pp.1-16
Lawton, T.C., 2017. Cleared for take-off: structure and strategy in the low fare airline
business. Routledge.

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CHANGI AIRPORT AND ITS CONTRIBUTION TO ECONOMIC GROWTH
Lee, B.L. and Worthington, A.C., 2014. Technical efficiency of mainstream airlines and low-
cost carriers: New evidence using bootstrap data envelopment analysis truncated
regression. Journal of Air Transport Management, 38, pp.15-20.
Mot.gov.sg. (2017). First Gate At Singapore Changi Airport Is Ready For Airbus 380 |
Ministry of Transport, Singapore. [online] Available at: https://www.mot.gov.sg/News-
Centre/News/2005/First-Gate-At-Singapore-Changi-Airport-Is-Ready-For-Airbus-380/
[Accessed 16 Nov. 2017].
Pearson, J. and Merkert, R., 2014. Airlines-within-airlines: A business model moving
East. Journal of Air Transport Management, 38, pp.21-26.