SPEECH BY PRIME MINISTER LEE HSIEN LOONG AT THE SINGAPORE AIRLINES A380 WELCOME EVENT, 17 OCTOBER 2007, 7.00 PM AT CHANGI AIRPORT TERMINAL 3

Mr Stephen Lee, Chairman, Singapore Airlines

Mr John Leahy, Chief Operating Officer (Customers) of Airbus

Distinguished Guests,

Ladies and Gentlemen

1.            I am pleased to join you this evening for the delivery of the Singapore Airlines A380. This first A380 to enter commercial service marks a milestone in aviation history, just like when the first jumbo jet started flying in 1970.

SIA’s Success

2.            SIA is a national icon.  It is one Singapore company with a widely recognised and readily identifiable global brand.  Behind the Singa­pore Girl icon is a competent, imaginative, and disciplined team, whose efforts have distinguished SIA as a leader in the air travel industry, known for its service quality and product innovation.  SIA has worked hard to keep its lead year after year, winning numerous inter­national travel and aviation awards.  Its route network, including SIA Cargo and SilkAir flights, extends to over 100 destinations in 41 countries.  SIA is a source of pride for all Singaporeans, and a symbol of our nation’s relentless drive for excellence.

3.            The story of SIA parallels the story of Singapore.  Singapore separated from Malaysia in 1965. Malaysia-Singapore Airlines (MSA) continued for another 7 years, before it split into SIA and MAS in 1972.  The challenges then were formidable.  SIA was just a fledgling airline with a small fleet of 14 aircraft – 9 Boeing 707s and 5 Boeing 737s – and a route network of 22 cities.  It had to fend for itself, without any financial subsidy or preferential treatment from the Singa­pore Govern­ment.  But this policy of exposing SIA fully to competition made it a stronger and better airline.  SIA quickly learnt, just as Singa­pore did, that in order to survive, it had no choice but to expand and compete internationally.

4.            SIA’s success is a triumph of the ingenuity, hard work and spirit of its people.  Like Singapore, SIA did not allow its small size or small domestic base to handicap its development.  Instead, it tapped growth opportunities in the region and the rest of the world, and made bold and imaginative moves to carve a space for itself in the aviation industry.  In the 70s, SIA created waves by being the first airline to offer economy-class travellers free drinks, free headsets and a choice of meals.  Other innovative products soon followed, like the satellite-based in-flight phones, and audio-video on demand entertainment for all passengers, to name but a few.  Step by step, SIA built up its global branding and reputation as a preferred airline for travellers around the world.  

5.            Today, with its latest addition, the Airbus A380, SIA is once again making waves by being the first to operate the largest commercial airliner ever built.  The A380 will give SIA the advantages of greater efficiency,  lower fuel emissions and less noise than existing long-haul jets.  The A380 will also provide more capacity for SIA’s key high-density markets, and maximise the use of limited landing slots at congested airports worldwide.  With its growth potential, SIA can develop new products and services to enhance its status as a global premier airline.

Challenges Ahead

6.            While SIA has been successful in anticipating change and breaking new ground, and has built up an enviable track record, it faces intense competition today.  Many other airlines aspire to replicate SIA’s success, and are steadily narrowing the gap.  As SIA has long realised, it cannot afford to operate only within its comfort zone, nor can it just coast along on its brand name.  Staying ahead of the competition requires both a bold vision to develop innovative products and services, and a keen eye on basics like controlling costs, improving service quality and deepening customer loyalty.

7.            SIA must also continue to strengthen its industrial relations climate.  The key to SIA’s success is its people.  For SIA’s people to work as a strong cohesive team, confidence and trust between management, unions and workers is critical.  Every employee must feel the sense of mission to make SIA a truly global airline, and give of his or her best, whether in delivering first-class service, improving efficiency, or finding better ways to get things done.  

8.            SIA has made much progress in this respect, especially in the last few years. But it must continue to strive to do better.  The experience of other airlines shows how difficult it is to get all the managers and workers in an airline to work as a team.  But SIA must show that this can be done, just as it has shown that an airline can stay profitable without government handouts or protection, even in the toughest of times when most airlines go into the red.

9.            But being a top airline alone is not enough; good airport infrastructure is critical to complete the travel experience.  In this regard, the launch of the A380 is a milestone not just for SIA, but also for Changi Airport.  Changi is the first airport in the world to handle commercial A380 operations.  Both Terminals 1 and 2, and this soon-to-be-opened Terminal 3 are A380-ready, with a total of 19 gates across the three terminals suitable for A380 aircraft.  Changi’s preparedness will stand it in good stead as a key international air hub and strengthen Singapore’s position as a gateway to the Asia Pacific.

10.        The futures of SIA and Changi Airport are intertwined; each feeds on the other’s efficiency and success.  With fiercer competition between would-be aviation hubs in different countries, it is even more critical for SIA and Changi Airport to look beyond the immediate future, set higher standards and prepare for tougher market conditions.  I am confident that you will rise to this challenge and achieve even greater success for yourselves and for Singapore.

Conclusion

11.        Finally, let me congratulate SIA for being the first to operate the Airbus A380, the world’s largest commercial airliner.  I also commend SIA and its partners for giving back to the community by raising funds for the less fortunate through its charity auction of the A380 inaugural flight.  On behalf of all Singaporeans, I proudly welcome the arrival of the first Airbus A380 aircraft to Singapore.  I wish SIA every success in flying this great aircraft around the world.