Assignment about Singapore Changi Airport

SINGAPORE CHANGI AIRPORT 1
SINGAPORE CHANGI AIRPORT
by Student’s Name
Code + Course Name
Professor’s Name
University Name
City, State
Date

SINGAPORE CHANGI AIRPORT 2
Introduction
Singapore Changi Airport is a major civilian airport found in Singapore. The airport serves
Singapore and other areas throughout Asia and the world. It is one of the largest air transport hub
in the Asian continent. For seven consecutive years since 2013, it has been rated by skytrax as
the world’s best airport.
Thesis: The factors that has contributed to the development of the airport in the past 3-4 years,
those possibly that will improve it in the next decade amidst the global crises, structural
capabilities, capacity constraints, and the plan of action that the local authorities have to put in
place to overcome turbulent issues will be looked into precisely.
Factors influencing development
There are a couple of factors that have influenced the development of Singapore Changi Airport
in the last 4 years and will probably influence it in the next decade amidst global crises,
structural instabilities and capacity constraints. Each of the factors is precisely discussed below.
a) Environmental factors
Singapore Changi airport serves as the major transit hub for all major airlines in Asia. It is also
the gateway for all individuals and visitors who would like to visit other Asian countries via the
Airports. It is also a major Cargo center for goods which are either destined for Singapore or
other Asian countries. Recently, the airport was rated for the seventh time by Skytrax as the best
Airport in the world. The Airport has 5 ecological friendly features which are so appealing to
customers. The foliage of green welcomes individuals even before setting foot into the airport.
The serene environment with limited carbon emissions to atmosphere courtesy of the trees and
flowers planted all over is soothing to the soul and health wise appealing. The buildings are well

SINGAPORE CHANGI AIRPORT 3
lit with natural lights especially terminal 3 which is fitted with translucent iron sheets. Movement
of luggage in Changi airport is modernized such that limited effort is required to move them.
Minimal waste can be seen in the airport as food waste is recycled to pure water and recycled
concrete has been used all through to build pavements.
b) Political factors
The government of Singapore is directly involved in the development of the aviation sector. The
government has been directly mitigating conditions and events that have got any adverse effect
on the aviation system. Just as the 2003 SARS outbreak paralyzed every activity in the aviation
sector, so was the 2008 financial crises which shook the entire globe. To prevent such
occurrences in the future, the Singapore parliament came up with a rule that the airport will have
to bank half of its profit in a bid to pull resources to deal with aviation crises and support
expansion plans. The reserve fund will have to contributed annually by the Changi airport group
and has to be maintained annually. Lin, 2018 p. 81 says in 2015 a streamlined contribution
Changi Airport Development Fund was set up to ensure there is always ready cash to support
expansion of the airport and combat any rising needs. By now the government only has
contributed close to $4 billion to the kitty and currently the 4th terminal was built with a higher
capacity than the other existing terminals. The construction of the 5th terminal which will be
bigger than terminal 1,2 and 3 combined is already set out to be built. In a month the airport
handles around 5 million passengers and the aim of the government is to ensure the airport
handles more than 10 million passengers within a month and more than 120 million annually.

SINGAPORE CHANGI AIRPORT 4
c) Economic factors
The economy of Singapore has been stable and at the same time growing drastically. The GDP
of Singapore in 2017 was US$ 54,530 per capita an aspect that makes the country a high-income
economy. It is ranked as one of the world’s countries with the most competitive economies and
Singapore stands out in that it provides the best business-friendly environment for investors. The
stability aspect in the past 4 years has enabled the Singapore Changi Airport to run its errands
smoothly thus obtaining surplus income which is used for development. Due to the laid down
measures, the economy will continue to boost the development of airport given that the GDP is
projected to be US$ 88 billion in the next 15 years according to International Air Transport
Association (IATA). With the projected growth of Air travel in Asian countries, Singapore is
investing billions on modern infrastructure to remain relevant and at the top by the time other
countries are developing. Currently with 3 terminals, the airport handles 66 million passengers
per annum. The 4th terminal will be opened this year and numbers are expected to rise to about
90 million a year. The fifth terminal construction is already underway and by completion the
airpoert will be holding 135 million customers annually. The jobs in the air travel sector are also
expected to triple up by the finish of terminal 5 since new investment in aircraft repair and
maintenance is slowly taking shape in the country.
d) Social factors
Singapore is naturally a peaceful nation with hospitable citizens. 3 decades ago, Singapore was a
third world country but at the moment it is among the first. The transformation was realized
when the authorities came together in a unitedly with the locals and pulled together resources to
transform the old Changi Airbase into an Airport. Other nations had advised the then leadership