Media Division, Ministry of Information and The Arts, 36th Storey, PSA Building, 460 Alexandra Road, Singapore 119963. Tel: 3757794/5
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SPEECH BY PRIME MINISTER GOH CHOK TONG,
AT THE SINGAPORE AIRLINES GOLDEN JUBILEE DINNER
ON THURSDAY, 29 MAY 97, AT 7.30 PM
AT THE WESTIN PLAZA HOTEL
Introduction
Over the years, SIA has earned the distinction of being one of the best airlines in the world, known for its product innovation and service quality. It has been the regular recipient of many major travel and aviation awards. These awards have been won in competition with the world's best airlines. SIA is to be congratulated for this achievement.
2 Today, SIA's fleet of aircraft, which is among the world's most modern, carries passengers to 72 cities in 41 countries. If cargo destinations and flights by its subsidiary airline SilkAir are included, the network is even bigger, covering 97 cities in 46 countries.
3 As Dhanabalan has said, the story of SIA parallels the story of Singapore. Like Singapore which was separated from Malaysia, SIA was born out of the split of one airline into two. This airline began operations 50 years ago as Malayan Airways. For its inaugural flight, it flew no further than Penang, using a twin-eingined aircraft that could carry no more than five passengers. I am told that the only refreshment on board the flight at that time was a flask of iced water. Today, SIA's new Boeing 777, appropriately named Jubilee, can carry almost 300 passengers who will be able to enjoy a variety of meals and drinks on board, including iced water.
4 Malayan Airways subsequently became Malaysian Airways and then Malaysia-Singapore Airlines, or MSA. In 1972, MSA ceased operations and two airlines were formed in its place, to become the national carriers of Malaysia and Singapore. Singapore Airlines as we know it today thus came into being in October 1972.
Formula for Success
5 SIA's success has been hard-earned. It is a triumph of will,
ingenuity, hard work, team spirit and superior organisation.
In terms of annual revenue and aircraft numbers, SIA is still
a relatively small player in the international arena. However,
like Singapore, SIA has not allowed its size to be a handicap
in out-performing its competitors. Its management is innovative
and forward-looking. Its workers are disciplined and dedicated.
SIA has strong marketing skills and its cabin crew a high standard
of service. SIA takes a long term view of things. Heavy emphasis
is placed on training and re-training. Profits are ploughed back
into the Group to buy new aircraft, invest in new technology,
and to continually improve its service and infrastructure.
6 SIA has attained its present status with little protection from the Government of Singapore. In fact, the Government had, on more than one occasion, allowed airlines of other countries to expand their services to Singapore even though they would compete directly with SIA. This policy of exposing SIA to competition has made it a stronger and better airline.
The Danger of Complacency
7 However, being a top airline now is no guarantee that SIA will
be at the top in 10 years' time. As countries recognise the enormous
economic advantage of good air transport infrastructure, newer
airports will be built.
This would intensify the contest between countries to be an aviation
hub. The keen competition amongst airports would certainly affect
Changi Airport and hence SIA. Because Changi Airport and SIA
have a symbiotic relationship, with each feeding on the other's
efficiency and success.
8 Then there are the trends in the airline industry - rising costs, market de-regulation and liberalisation, fast expanding smaller airlines improving their quality of service, big established airlines becoming leaner and more efficient, and airline alliances. All this points towards the need for a strategic change in thinking to meet the increased competition in the years ahead.
9 Indeed, the lead which SIA has built up over other airlines is narrowing. SIA has recently purchased new Boeing 777 aircraft. So have others. Those of you who have travelled on SIA flights must be aware that SIA has equipped its planes with an inflight entertainment system which allows passengers to watch different movies, listen to a variety of music, play video games, track the progress of the aircraft and make phone calls, all from his or her own seat. Other airlines have either done the same or are planning to do so.
10 As SIA must have recognised by now, it is no longer sufficient
to rely on its brand name. Instead, SIA must differentiate itself
from others through even better service and innovative means of
making the aircraft journey an experience in itself for passengers.
Many airlines have also realised this. I am told that Virgin
Atlantic has a beauty therapist on board most of its flights,
and she serves as manicurist and masseuse. It is also reported
to be considering private bedrooms, showers and jacuzzi facilities.
While SIA might not wish to go this far, it would nonetheless
have to seek other creative ways to draw in more passengers.
The Stakes
11 SIA is a source of pride for Singaporeans and a symbol of our nation's drive for excellence. It is a national icon.
12 Because of this, Singaporeans are not slow to give feedback
if they perceive shortcomings. I have heard comments that other
airlines are catching up with SIA in terms of service. I myself
have given feedback to SIA management when I heard of the occasional
lapses in its service.
Some in SIA may think that Singaporeans criticise too readily
and too harshly. Perhaps they do. But it is not a bad thing
as they do so out of concern for SIA. Singaporeans are proud
of their national airline.
They want to have the reasons to remain proud. They do not want
to see SIA's standards slip while other major carriers win accolades
for product innovation and service quality - traditionally the
hallmarks of SIA.
13 We cannot allow SIA to lose out to its competitors. The reasons
for SIA's success are the same for Singapore's. If SIA falters,
Singapore's confidence and international reputation will be severely
diminished.
SIA understands this. Chairman, SIA, has just assured us that
SIA will give of its best. I am happy with his assurance.
The Challenge
14 SIA will have to make the right strategic decisions over the next few years. Dhanabalan spoke of the challenge before SIA, that of seeking and climbing another peak, "a peak so steep that few would venture after us". He did not tell you what this peak is. I shall define for him this peak.
15 Without a big domestic market, SIA will have to tap into the
region and the rest of the world to seek further growth. It has
to think even bigger than in the past, and be even more brash,
to become a world airline. This is possible when the open skies
policy is adopted by more countries.
SIA can also be a world airline by forging alliances with reputable
airlines to provide a first class global service. This must be
the next grand vision of SIA, the grand peak to climb - to be
a world airline.
16 The key to success is people, as Dhanabalan has reiterated. I would add that for the people to work as a strong cohesive team, trust and confidence between management and the unions and workers is critical. Staff morale and motivation, personnel development and succession plans, staff welfare and compensation packages - these are matters which require the company's attention at the highest level.
17 SIA enjoys generally good industrial relations climate. This has helped SIA to remain competitive. Strengthen this and SIA will be tough to beat. SIA is now under pressure to cut costs. But it also understands that this must be done with the workers' welfare in mind. Managers must lead, motivate and communicate their goals; workers and union leaders must be prepared to see the bigger picture and think of the present and future well-being of the company by consistently improving efficiency. You must regard SIA as your own and give of your best. If you can do that, I have no doubt that SIA will achieve even greater success and make Singaporeans even prouder of you. At any rate, we cannot allow SIA to lose in the new competitive environment of the 21st Century.
Closing Remarks
18 On this occasion of SIA's Golden Jubilee Dinner, I call on all SIA staff, the management, the unions, and the workers, to rally behind SIA and make it an airline we can all be proud of, a world airline which is the first choice of passengers.
19 This is a happy occasion. SIA has done well. So let us celebrate and be happy. But in rejoicing, let us vow to keep up the good performance, set new standards of service and grow into a world airline. Then we will have reasons for more such celebrations in the years to come. Congratulations on your 50th anniversary.
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