SPEECH BY PRIME MINISTER LEE HSIEN LOONG

AT THE OFFICIAL OPENING OF CHANGI AIRPORT’S

TERMINAL 3, ON 25 JULY 2008 AT 3.45 PM

1          I am happy to join all of you today for the official opening of Changi Airport’s Terminal 3.  It marks a significant milestone for Changi Airport since its opening in 1981.

2          In January this year, Changi Airport made a smooth and seamless transition of its operations to Terminal 3.  We sometimes take such performance for granted, but in fact it is an impressive achievement, especially when set against what has happened in other new major airport terminals, where the first few days of operation are often plagued by trouble and inconveniences for travellers.  In contrast, the transition to Terminal 3 was almost flawless – there were no hiccups, delays or computer glitches.  This is a tribute to the entire team in Changi Airport who have worked hard together to make this happen and keep standards high.

Changi Airport – Growing with the Nation

3          The shift from Paya Lebar to Changi Airport was a bold decision taken by the government in the seventies.  At that time, the additional airport capacity that we needed could have been met by building a second runway at Paya Lebar airport.  This option involved lower land acquisition costs and fewer uncertainties.  Relocating to Changi, on the other hand, would cost over $1 billion, a princely sum even now.  Yet, the govern­ment decided to shift the airport to Changi, because we had a vision of creating a vibrant air travel hub, and Paya Lebar could not fulfil that vision.

4          Ever since then, Changi Airport has grown with Singapore.  When it first started operations in 1981, Changi handled 8 million passengers.  Last year, the airport handled 37 million passengers, making it the 6^th busiest airport in the world for international traffic.  Today, the economic activities of Changi Airport and airlines that use it directly contribute 100,000 jobs and over $10 billion in value-added. 

5          Beyond its economic contribution, Changi Airport holds a special place in the hearts of many Singaporeans.  The Changi Control Tower is one of our most recognised buildings.  It is one of the first things that children draw in their kindergarten art classes.  Changi Airport is probably the only airport in the world which students flock to during exam periods, in search of a cool and pleasant place to study in.

6          Changi Airport has made an indelible mark on the aviation industry.  It has set an international benchmark for service excellence and operational efficiency.  It has won over 280 awards over the last 20 years, and is consistently recognised as the best airport in the world by travellers and the travel industry.  To airport administrators around the world, Changi is the airport to emulate and beat.

7          These achievements would not have been possible without the airport’s team of dedicated leaders and staff.  In particular, I would like to pay tribute to the late Mr Sim Kee Boon, who spearheaded the construction of Changi Airport, and then instilled in Changi Airport’s management and staff the importance of providing the highest level of quality and customer service, keeping a close interest in the airport right up to his passing last year.  Mr Sim’s influence persists in many aspects of Changi Airport’s operations and organisational culture today.

Soar High; See Far

8          Not many people know that when Changi Airport was first conceived in the seventies, the masterplan already provided for three terminals.  In other words, Terminal 3 has been 30 years in the making.  The planners then knew that Terminal 3 would not be needed for some time, but still they boldly looked decades into the future to the day when the traffic volume would make the terminal necessary.  The foresight of those planners long ago is the reason why we have been able to steadily expand Changi Airport over the years in a coherent and systematic manner. 

9          In line with this spirit, CAAS is already starting on master-planning for Terminal 4. The new Terminal 4 will provide capacity for future growth beyond Changi’s current capacity of about 70 million passengers per year.  It will not be needed for many more years.  But forward planning will ensure that passengers can continue to enjoy high quality and excellent service, and Changi can keep its leadership position, far into the future.

Staying Nimble; Staying Focused

10        Not everything can be planned, and a successful organisation needs to stay nimble to stay in the game.  The development of Low Cost Carriers (or LCCs) is a case in point.  No one foresaw the rapid growth of LCCs, and a dedicated terminal for LCCs was certainly not in the original Changi Airport masterplan.  But Changi Airport reacted swiftly and constructed the Budget Terminal within 8 months.  For the first 6 months of this year, LCCs contributed about 11.5% of passenger traffic in Changi Airport as well as 47% of the net growth in traffic.

11        Looking ahead, Changi Airport faces new risks and challenges.  Fuel prices are at record highs, impacting the bottom line of every airline.  The uncertain economic climate has further pushed consumers to become more careful with their spending, and trim back on discretionary travel.  In addition, competition amongst airports is growing more intense.  Many other airports aspire to be global and regional air hubs, and are building up their capabilities in order to attract more airlines and travellers.

12        Changi Airport needs to stay focussed to tackle these challenges.  It must watch closely the changes in the external environment and respond promptly to new opportunities and threats.  It must pay meticulous attention to service quality and innovate relentlessly, to stay ahead of the competition.  

13        The Government has announced plans to corporatise Changi Airport and restructure the Civil Aviation Authority of Singapore.  The Ministry of Transport has been working intensively with various stakeholders over the past year and will announce details of the corporatisation exercise soon.

14        This is a major step forward to prepare for the future.  We must set up the right operating and regulatory framework, so that Changi Airport can react faster and more effectively to new business needs, and the staff can continue to deliver outstanding service.  The transformation will not be easy.  But having done several major corporatisations over the years, the Government has a better sense of the implementation issues and potential difficulties.  We therefore have the confidence and experience to work these out.  In doing so, we will not forget the importance of the people who make Changi Airport work so well.  We will do our utmost to take good care of them both during and after the corporatisation process.

Conclusion

15        Changi Airport is the first and last impression that most visitors have of Singapore.  It is therefore a standard bearer for the Singapore brand.  Indeed, for many transit passengers, Changi Airport is the only place in Singa­pore they come into contact with.  Hence, it is essential that these passengers leave with memorable experiences, impressed with both the airport and with Singa­pore, and interested to come back for a repeat visit.  This will require the entire airport community, from private operators to government agencies, to work in concert to deliver the highest standards of customer service and efficiency.  The reputation and high standing that Changi Airport enjoys today is testimony to your hard work and commitment to excellence.  I congratulate all of you on the successful opening of Terminal 3, and wish you every success in ensuring its smooth development and operation for many more years to come.