Mr William Franke, Chairman of Tiger Airways

Distinguished Guests

Ladies and Gentlemen

It is my pleasure to be here today to celebrate the launch of Singapore’s newest home grown carrier, Tiger Airways.

2                    I am also happy to say that with the start of operations by Tiger Airways, the network of airlines serving Changi will increase to 73.  Together, these airlines give travellers a choice of over 3,500 weekly flights to more than 160 cities in some 50 countries.

3                    The entry of Tiger Airways underscores the pick-up in air travel this year.  Changi Airport, too, has experienced strong growth in both passenger and freighter traffic.  From January to August this year, passenger traffic to Singapore rose by a commendable 31 per cent over the same period last year, surpassing pre-SARS levels.  Cargo traffic, which was relatively unaffected by SARS, expanded by almost 12 per cent over the same period of last year.  All in all, I am optimistic that Changi’s traffic will reach new heights this year.

Market Stimulation by Low Cost Carriers

4                    Even before its take-off today, Tiger Airways has already succeeded in ramping up interest in low cost travel with its jet-stopping advertisements offering ultra-low fares.  The entry of the Tiger is certainly a boon to consumers, who can now fly to regional destinations at previously unimaginable prices.   

5                    With the arrival of LCCs, both Singapore and our regional neighbours can look forward to greater opportunities for travel.  South East Asia has a total population of about 500 million, with a combined GDP of more than US$700 billion.  Affluence is rising too. This is a huge, but not well tapped travel market.  The popularity of Tiger Airways’ website just after the launch of its offers hints strongly at the pent-up demand in the market.  Based on what has happened in Europe and America, there is no doubt that the availability of low fares here will stimulate the growth of intra-Asia tourism.

6                    Apart from tourism, greater air connectivity will also fuel regional trade and investment growth, as entrepreneurs and Small and Medium Enterprises take advantage of more affordable fares and greater connectivity to expand into the region.  Indeed, as ASEAN becomes even more connected, we will become more attractive to investors from outside ASEAN.

Facilitating the Low Cost Airline Phenomenon

7                    The low cost airline phenomenon presents many opportunities for Changi Airport as well.  We intend to be at the forefront of partnering low cost carriers, to ensure that we cater to their needs and business models.  To better collaborate with LCCs as well as to help them lower their costs, the Civil Aviation Authority of Singapore (CAAS) will be constructing a brand new low cost terminal.  We are pleased that Tiger Airways has committed to use the terminal immediately after its completion. 

8                    Scheduled to be ready by early 2006, the terminal will have an initial capacity of 2.7 million passengers a year, with scope for further expansion.  Whilst airport charges in Singapore are already one of the lowest in the region, airlines like Tiger Airways will stand to benefit from even more competitive charges, with the use of this low cost terminal.

9                    Singapore is also committed to pursuing more liberal air services agreements with countries in the region, so as to promote the proliferation of such air services.  With a more liberalised air services regime in the region, the potential multiplier effects on regional economies would be tremendous, and will bring about economic growth and social integration for the region. 

Partnering the Airlines

10                CAAS believes in working closely with its airline partners to achieve a win-win outcome.  Singapore Changi Airport endeavours to create a conducive environment for our airline partners to thrive and flourish, so that they in turn, will help to enhance Singapore’s status as an aviation hub.

11                Through such synergistic efforts, I am confident that the ties between Singapore and the airlines will continue to strengthen over time.  This inaugural ceremony today is a fine example of a valued and trusted symbiotic relationship between Singapore Changi Airport and Tiger Airways.

12                On that note, my congratulations once again to the energetic team at Tiger Airways, and my best wishes to you for your success.  And to all passengers travelling onboard this inaugural Tiger Airways flight, I wish you a pleasant and enjoyable journey and I hope you will have a roaring good time on board!