Critical Analysis of Partnership and Collaborative Working in Aviation

This report provides a critical analysis of collaborative working and partnerships within the aviation industry, examining the strategic management of airport operations. It delves into the external and internal environments influencing the sector, including political, economic, social, technological, environmental, and legal factors. The report explores various aspects of airport operations, such as commercial facilities, revenue sources, and the dynamics of airport-airline relationships. Furthermore, it investigates the specific context of Changi Airport Terminal-5, discussing its operations, planning, and construction, along with the influence of networking and collaborative partnerships on stakeholders. The analysis incorporates theoretical frameworks to understand the advantages of strategies and management for airport operations, aiming to provide a comprehensive overview of collaborative working in the aviation sector.

Partnership and Collaborative
Working
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Executive Summary
The aviation industry is going through different forms of structural change and
management based on a global scale. Such types of changes possess triggered effects
on the functions and roles of international airports which were contributed by
commercialization, deregulation, commercial, economic, political and privatization of
airports. Globalization has emphasized the need for consolidation to attain economies
of scale and comparative advantage as well as strategic competitiveness. The portal of
Changi Airport also involves functions of Outlet Inspection and Electric Application for
Renovation Permit enables the operational processes to enhance and streamline
productivity among all the stakeholders. Therefore, the paper critically evaluates and
analyzes theoretical frameworks to have collaborative working process.

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Table of Contents
Introduction................................................................................................................................................3
Part 1..........................................................................................................................................................3
Critical analysis of the Strategies and Management of Airport Operation.....................................3
Provision and operations of Commercial facilities............................................................................5
Nature of Airport Operations...............................................................................................................5
The external and internal environment of the Aviation sector's......................................................6
Part 2..........................................................................................................................................................9
Changi Airport Terminal-5 operations, planning, and construction................................................9
Justification of how stakeholders are influenced by networking, collaborative partnership, and
collaborative working..........................................................................................................................10
Conclusion...............................................................................................................................................12
References..............................................................................................................................................13

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Introduction
The paper will evaluate collaborative working and complex context of
partnership. It will discuss the factors that constrain and contribute collaborative working
and partnership interagency to observe the effectiveness of the influencing factors. It
will analyze a wide range of theoretical frameworks and tools for understanding the
advantages of strategies and management for airport operations. It will present the
internal and external environment of aviation industry based on strategic alliances,
partnership, collaboration, and networking. It would demonstrate airports functional
strategies, business and corporate. Thus, the paper would aim to analyze the
operations, planning, and construction of Changi Airport Terminal-5.
Part 1
Critical analysis of the Strategies and Management of Airport Operation
Strategic Management is determined to be a set of managerial actions and
decisions that consider the long-lasting performance of the aviation industry. It is
regarded as a science and art of evaluating, implementing and formulating cross-
functional decisions that helps aviation sectors to attain its target. The industry focuses
upon the internal aspects and particular changes made within the industry
(Chiambaretto & Fernandez, 2016). These changes have converted government
retained and operated airport to commercial airport which is open up for competition.
Additionally, previously the airports that served network carriers along with their core
competencies in aircraft handling and passengers are presently serving low-cost
carriers (LCCs). Based on core competencies aviation industry adopts core theory that
results in a lack of stable equilibrium and core problem, hence it is observed as a
standard economic concept. This network provides customized goods like dedicated
low-cost terminals (LCTs). These LCSTs are determined to be minimalistic in providing
non-essential factors for their passengers but are accurate in executing the facility to
supply lower price. This is to present a lower cost structure that helps LCCs in executing
market pressures to provide a low cost to the budget travelers.

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On the other hand, new or existing airports are required to enhance their
response and adaption strategically to increase globalization and competitive air-ticket
pricing that spreads strategic alliances between international airlines. These strategic
alliances help international airlines to collaborate and network to identify the mutual
benefit in accessing markets and resources at competitive costs. The alliances have
helped the creation of alliance hubs that may approve logical locations of the airlines
within the terminal and increase competitive advantages of the airlines bargaining
power. The administration of airport may be approached according to privatized airports
and government-owned airports that has been leased on concession to the operator of
an airport known as a concessionaire (Schultz & Götz, 2016). This concessionaire buys
a lease or concession by providing the payment earlier to operate the airport for a
limited period of time. Its role is to operate the airport and imagine whole economic risk
for the operations of the airport that enables air travel, shipment and cargo handling.
Hence, such competitiveness is often recognized with the help of strategic alliances and
networking in the administration of the airport.
Functions and roles of airports
Airports that are necessary for the airport transport system helps freight and
passengers to convert from land to air modes of transport. The infrastructure of the
airport possesses freight, terminals for passengers, apron space, taxiways, and
runways. It also supports in handling facilities for departure gates, immigration check-
points, passengers and baggage and facilities like duty-free shops, restaurants,
recreation and rest for passengers (Mousavi & Bossink, 2017).
Economics of Airport Operations
The operating revenue sources of the airport are classified into following
categories such as, aeronautical revenue that involves air bridges, airport lighting, air
traffic control, aircraft parking, passenger, fees for landing and so on. It also includes
non-aeronautical revenue that provides concessions, direct sales, rents by property
development, business services, visitor, car park, airport operator and so on (Shabani,
Golrizgashti & Seyedaliakbar, 2016).

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Provision and operations of Commercial facilities
These facilities are patronized or utilized by shoppers especially for the
passengers who are affluent and seeks to pay for quick meal or shop to purchase gifts
and souvenirs at the time of returning home from an international tour. As a result, it
becomes important to understand the preferences and requirements of the airport
passengers group. It is also necessary to improve the performance of the operations of
the airport facilities as per cost, flexibility, dependability, speed, and quality (Yücesan,
2016). Such types of improvements boost the criteria of order winning and withstand the
core competencies of the operations.
Nature of Airport Operations
Nourishing the core competencies of the airport operations needs equilibrium
between the commercial facilities and airport along with passengers and the airlines.
This equilibrium helps to derive optimal operations of the work environment and airport
facilities for airline and airport employees. Although the optimized operations will ensure
the provision of appropriate flight deliveries, support facilities, and safe operations at low
operational costs to the stakeholders of the airport. Additionally, the airport operations
found a huge variation in demand with the time that puts an impact on the passenger
traffic and economies of passenger and scale flow. Such type of operations involves
ensuring the availability of facilities like air bridges, ground handling, and baggage
handling systems, managing airport noise control, airport peaks, and airport schedules
(Anderson & Burney, 2018). Moreover, it is necessary that terminal operations like,
ticketing services, airline information, airport security, passenger services; reclaim,
baggage delivery and baggage check-in are provided at the time of airport
development.

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The external and internal environment of the Aviation sector's
External Environment
Like most of the businesses, the aviation industry is also impacted by its external
environment based on political, economic, social, technological, environmental and
legal factors.
Political factors
The political factors involve government intervention in a specific industry or
economic operations. The aviation industry operates in a political environment that is
restricted and regulated. Government intervention is essential to secure the interests of
the passengers and safety measures of airline operations. There possess strict
regulations related to airlines industry in most of the countries (Klimas, 2016).
Numerous policies have been prescribed to prevent the passengers instead of the
airline's industry. In a particular country war or insecurity factors always puts a negative
impact on the aviation industry. This is a major risk as it possesses more chances for
airlines to lose consumers in areas that possess high-security threats.
Economic factors
A stable economy is determined to be a catalyst for the growth of an industry.
Economic stability is measured through economic indicators, for example, it involves
growth in consumer confidence, level of business, industrial production, disposable, per
capita income and gross domestic product (GDP). Fluctuation in oil prices is determined
to be another factor that puts an impact on the profitability of airlines (Le Roy & Czakon,
2016). Moreover, the economic indicators such as business confidence and industrial
output put a direct impact on the growth of cargo traffic and airline passenger.
Social factors
Presently the demand for air travel has shown a significant increase that signifies
preferences of changing travel between the latest generations. Thus, social factors play
a significant role in future travel preferences and forecasting demand. To meet the
changing demands of the customer's airlines are needed to incorporate changes.

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Presently the passengers prefer such type of airlines that facilitates high-quality
services at low fares (Johnstone & Wilkinson, 2018). Another factor that affects the
external environment of the aviation industry is automation where people hold a
conference or uses Skype features instead of traveling.
Technological factors
In order to face intense competition in the aviation industry, organizations must
implement the latest technology. The utilization of advanced aircraft technology leads to
less consumption of fuel that improves the cost and efficiency of airport operations.
Technology is considered to be one of the four pillars based on the strategy of
International Airline Transport Associations (IATA) to address climate change (Veen &
Felkel, 2017). Most of the aviation sectors are replacing their old aircraft with new
efficient fuel.
Environmental factors
The environmental factors put a great impact on the aviation industry as
compared to any other sector. Fuel is determined to be a significant expenditure of the
sector and airlines are required to invest more in fuel efficient and environment-friendly
aircraft. However, climate changes also put an impact on the airline sector as the
airlines are needed to practice the procedure of ‘green flying' for preventing the
environment (Garg, 2016). This procedure includes finances, where airlines could not
compromise as the passengers possess accountable for their carbon footprint.
Legal factors
Similar to political and economic factors, legal factors also possess significance
for analyzing the external environment of an aviation sector. There possess certain laws
for the safety and security of passengers and air traffic. There comprise of various
regulations that need airlines to provide safer travel along with high-standard of
services. Airlines are held responsible for any types of disaster or damage and air
crashes (Mills, Koliba & Reiss, 2018). Hence, several laws have been made to regulate
how the aviation industry treats its passengers.

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Internal Environment
Airport's cost and revenues are influenced by several factors such as nature and
volume of the traffic, the number of domestic passengers versus international
passengers and choice of service and physical standards. It is also influenced by the
number of terminals to facilitate a huge range of services and facilities for passengers,
the size of airports, economies of scale, nature of the traffic and volume.
Service quality
The service quality of an airport is spurred by structural changes that include
globalization, commercialization, privatization and increased competition among the
airports. This service is developed by combining organizational activities like customs,
immigration, baggage handling, airlines, and other service providers (Marek, Titze,
Fuhrmeister & Blum, 2017). Each of these activities possesses organizational
perception and objectives based on the service quality provided to the passengers.
Airport-Airline relationship
This significant relationship proves to be effective for any of the airport business.
Airlines work hard to enhance their financial outcome in a deregulated and increasingly
competitive environment. They are highly focused on scrutinizing the charges enforced
for utilizing the airport and its facilities. These charges involve government taxes, fuel
and ground handling charges, security charges, and passenger charges and landing
charges.
Airport Development
The air traffic of Asia Pacific region’s forecast to maximize two-fold by 2040,
facilitating new challenges for airport construction and development. These challenges
involve the use of airport technology and dealing with matters considering cargo
volumes and passengers and building more runways. This technology enables more
accurate and faster processing and documentation of passengers, retrieval of cargo
handling and baggage check-in. It is significant to incorporate interfacing of the airport
terminals to facilitate accessibility of quick passengers and transfer among terminals for

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outbound and inbound flights (Dodd, Orlitzky & Nelson, 2018). It helps on transferring
passengers for their flights to a different multitude of global locations.
Part 2
Changi Airport Terminal-5 operations, planning, and construction
The construction of Changi Airport International (CAI) was done to replace Paya
Lebar Airport due to the requirement of space to extend the airport in future.
Subsequently, the proposed infrastructure of CAI involved three airport terminals with
an option for constructing two runways and fourth terminal that would be enhanced by
airport utilities and facilities. On 1st July 1981, Terminal-1 was operationalized and was
officially opened on 29th December 1981. Whereas, on 22nd November 1990 Terminal-2
was operationalized and was opened officially on 1st June 1991, while on 9th January
2008 Terminal-3 was constructed and operationalized (Corrigan et al., 2015). On 26th
March 2006, a Budget Terminal for low-cost carriers was opened and it was closed on
25th September 2012. The government has announced the building a multi-complex
facility and Jewel that would be completed by 2018. The facility would provide leisure
and retail amenities for the travelers and will function as a linking hub for all the airport
terminals that are already served by the Sky train system.
As per the report posted on 1st July 2015 on Straits Times Changi Airport, Mass
Rapid Transit (MRT) Station serves Changi Airport which was launched on 8th February
2002. It facilitates train that provides convenient and fast transport from the heartland
and city to the airport. The Singapore government in August 2013 announced plans to
construct the third runway as well as Terminal-5 which is larger than the combined
capacity of Terminal-2 and Terminal-3 (Wu & Liu, 2017). From the five terminals, the
combined capacities of Changi Airport will increase the capacity of the airport to carry
out 135 million passengers each year up to 66 million now. The plans are ambitious and
the price may run into millions, but Terminal-5 is necessary to stay forward of
competition from neighboring countries like Middle East, Malaysia, China, and Hong
Kong. These countries are enhancing capacity for runway and terminal in anticipation of
the growth of air travel from the Asia-Pacific. In 10 years Terminal-5 is expected to be
ready and is able to carry out 50 million passengers annually (Heringa, Hessels & van

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der Zouwen, 2016). This terminal will place Singapore as the key hub for air travel
within Asia and all over the world. It would be the world's largest passenger terminal
after Dubai and Beijing.
Moreover, in order to plan a mega terminal, it needs commitments of heavy
resources due to its long gestation where Changi Airport plans to stand the test of time.
The inter-agency Committee of Changi 2036 steering spent countless to trend the
benefits and cost and analyze the data. The significant advantage of this is the first
mover where the airport infrastructure takes enormous time and sufficient capacity to
grow, hence it is clear that Changi airport hub could grow rapidly. To construct Terminal
5 three gigantic tunnels will be dug to move people and bags between the current
airport and future Terminal 5. According to the project director of the Changi Airport
group the project would commence in 2019 and will take two to three years to complete
(Ramler, Felderer, Kitamura & Marinov, 2016, April). Additionally, to build the huge
constructive zone huge canals and paved roads being dug and a network of taxiways
are being laid up to the Pan-Island Expressway from Tuas to Tampines. As per the
forecast of global airline body, the total air passenger traffic of Changi Airport would
enhance a number of aviation based jobs that would be double in 20 years. In turn, this
may increase the contribution of the aviation industry to Singapore's GDP by US$65
billion until 2035 as per International Air Transport Association (Takebayashi, 2016).
Therefore, strategic management helps Changi Airport to construct and plan Terminals
to provide convenience to the passengers.
Justification of how stakeholders are influenced by networking, collaborative
partnership, and collaborative working
The project team of Terminal-4 will continue to involve stakeholders to develop
products and new operational concepts to provide initiatives to cost-effective and
efficient for airport users. The stakeholders of Changi Airport are influenced by
extensive networking in the east and south regions of China. Thus, it has extended its
networking of passenger city links by including six new points that are beneficial for the
stakeholders (Mills, 2016). Changi Airport is considered to be the busiest international
air hub in the world to provide the best flight options to the discerning world traveler to

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increase manpower challenges and labor cost for the stakeholders. Despite the
challenging external economic situations, the airport has included two new cargo city
links to its networking. Changi Airport has increased occupancy and drive revenue to
build air cargo agents business networks (Khan, 2015). As a result, it presents the fact
that successful projects based on networking make stakeholders engage within the
project. Several networks build on Changi Airport provides capital funding to the
stakeholders by evaluating the performance of the airport.
Moreover, Changi Airport has undertaken collaboration with tourism authorities,
travel trade, and airlines with the help of various marketing initiatives in the international
and national markets. This helped the stakeholders to focus on commitment and
community engagement to compliment and deliver high-quality customer service
(Kazantsev, Pishchulov, Mehandjiev, Sampaio & Zolkiewski, 2018, February). Such
type of collaboration helps the stakeholders to ensure a safe and secure environment
for passengers where the stakeholders test the system and procedures by emergency
drills. The effective collaboration of Changi Airport influences the managers to make
relevant decisions based on project management and helps them to make effective
communication (Armstrong, 2017). The stakeholders of the airport are able to influence
the decision-making process of project management through collaborative working.
Thus, stakeholders would have a great influence on cost and ability and project time
span to make final decisions. However, collaborative working with the stakeholders has
become significant to understand the requirements of stakeholders to achieve better
project delivery timelines by accepting huge infrastructure as well as operations related
to them.
Communication plays a vital role while collaborative partnership and working that
builds a positive relationship with the organization and people that in turn influences
other stakeholder groups. Thus, collaborative partnership influences the stakeholders to
get more information about the project and make appropriate decisions. On the basis of
collaboration, the stakeholders are considered to be the leaders with effective
communication strategies. The actions and activities of the stakeholders put a great
impact on the success of the project based on constructing Terminal 5 ( Guffarth &

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Barber, 2017). The influences of different stakeholders could be controlled by controlling
the mission values with major stakeholders. Moreover, the process of collaboration
maintains a prolonged relationship with the major stakeholders that is beneficial for
Changi. It influences the stakeholders to enhance growth to the business.
Conclusion
The paper provided a critical analysis of Strategies and Management of Airport
Operations based on the case study. It also discussed the internal and external
environment of aviation sectors. It also provided information based on operations,
planning, and constructions of Changi Airport Terminal-5. It has been observed that
strategic alliances, partnership, collaboration, and networking not only influences the
nature of functional, business and corporate level strategies of aviation sector's
stakeholders but also the stakeholders of Changi Airport. It also stated the fact that
stakeholders of aviation sectors involve strategic partners, collaborators, and the
companies. Therefore, it provided structural change and management of the aviation
industry.

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