Aviation in Singapore

Aviation in Singapore

Aviation in Singapore is a key component of the Singaporean economy in its quest to be a transport hub of the Asian region. Besides currently the sixth busiest airport and the fourth busiest air cargo hub in Asia, the Singaporean aviation industry is also a significant aerospace maintenance, repair and overhaul centre.

A study conducted in 2001 showed the aviation industry contributing about 5.5%, or S$7.9billion, to Singapore’s gross domestic product. It provided one in 20 jobs in the country, or one in 17 jobs if the indirect impact of the sector on the rest of the economy is taken into account. A different set of measures by the Economic Development Board showed the industry having an output of S$3.8 billion in 2003, contributing 1.2% to the GDP and employing over 11,000 people. In 2004, the industry grew 16% to hit a record high of S$4.5 billion.

History

Market

As a result of an almost non-existent domestic market, Singapore has to place immediate emphasise on opening up the international market for its own airlines, as well as to allow foreign airlines to establish operations there. Singapore has Air Services Agreements with over 90 countries and territories [cite web|url=http://www.mot.gov.sg/airtransport/policy.htm|title=Aviation Policy] , and has the most liberal aviation policy in Southeast Asia [cite web|url=http://www.atimes.com/atimes/Southeast_Asia/IG06Ae01.html|title=Prying open ASEAN's skies] It has been an active advocate of open skies, and has concluded over 20 Open Skies Agreements. In June 2006, it became the first Asian country to conclude a “horizontal” aviation agreement with the European Union [cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/760&guiLanguage=en|title=Single market for air transport between EU and Singapore] [cite web|url=http://app.mot.gov.sg/data/pr_06_06_9.htm|title=Singapore Signs Landmark Aviation Agreement with the European Union] . On 2 October 2007, Singapore became the first country to be allowed cabotage rights within the United Kingdom in a fully-liberal aviation agreement [cite web|url=http://www.channelnewsasia.com/stories/singaporebusinessnews/view/303608/1/.html|title=Singapore, UK conclude landmark Open Skies Agreement] . Singapore was also the first Asian country to conclude an Open Skies Agreement with the United States in 1997 [cite web|url=http://www.aftaonline.com/aol%20archives/industry/Travel%2097.htm|title=The skies open up] , and has significant liberal agreements with the United Arab Emirates.

Open Skies Agreements

Singapore has attempted to conclude an open skies agreement with Australia since 1996, but was met with numerous obstacles [cite web|url=http://app.mot.gov.sg/data/pq_03_11_10.html|title=Oral Answer to Question on the Open Skies Agreement between Singapore and Australia] [cite web|url=http://app.mot.gov.sg/data/p_05_08_17b.htm|title=Singapore and Australia Transport Ministers Meet for Discussions] [cite web|url=http://app.mot.gov.sg/data/pr_22_02_2006.htm|title=MOT's Press Statement on Trans-Pacific Air Route] [cite web|url=http://app.mot.gov.sg/data/pr_06_05_31.htm|title=Response to Queries on Open Skies Agreement Between Singapore and Australia] . There are also huddles in its attempts to open up the Singapore-Malaysia sector [cite web|url=http://app.mot.gov.sg/data/pq_05_11_21b.htm|title=Oral Answer to Question on Air Services Between Singapore and Malaysia] [cite web|url=http://app.mot.gov.sg/data/pr_06_08_7a.htm|title=Response to Queries on Singapore-Kuala Lumpur Air Route] .

Low-cost travel

Partly in response from competition from AirAsia based in neighbouring Malaysia, Singapore-based low-cost airlines only began to operate from the year 2004 when Valuair launched its maiden flight on 5 May 2004. In rapid succession, two of the largest airlines operating out of Singapore Changi Airport began operating their competing carriers, namely Singapore Airlines' Tiger Airways and Qantas' Jetstar Asia, who began commercial flights on 15 September 2004 and 25 November 2004 respectively. A planned Singapore-affiliated airline by AirAsia was scuttled when it failed to obtain an air operator's certificate from the Singaporean authorities, possibly in retaliation to the Indonesian ban on all new low-cost flights into the country by non-Indonesian carriers [http://www.worldpress.org/Asia/2360.cfm#down] .

The physical size of Singapore meant practically all low-cost air routes have to be international in nature, imposing greater risks on the airlines with the greater dependence on aviation negotiations between Singapore and its markets. With relatively limited air rights on offer in the Southeast Asian region, the three airlines had to contend with flying to a select number of destinations where air rights are available, resulting in intense, direct competition on specific routes. The Singapore-Bangkok sector, for example, saw all three Singapore-based carriers, as well as AirAsia flying the route prior to market consolidation. The airlines were able to take advantage of subsequent liberation of air rights between Singapore, Brunei and Thailand [http://www.dot.gov/affairs/shane052605.htm] in late 2004, although key destinations such as Kuala Lumpur remain closed to all low-cost airlines.

With soaring fuel prices, limited markets, and the impact from the 2004 Indian Ocean earthquake, the low-cost aviation industry went into a consolidation phase, with Valuair, the only low-cost airline without a major stakeholder, becoming the first casualty when it was merged with Jetstar Asia Airways on 24 July 2005. The airline was still operated like a separate airline, however, due to regulatory restrictions on its flights to Indonesia, where Jetstar Asia had no access after the Indonesian ban.

The fiscal fortunes of the two remaining players began to diverge, however, when it became apparent that Jetstar Asia was struggling, while Tiger Airways was doing relatively well.

Keen interest by low-cost carriers to serve the highly-protected Singapore-Kuala Lumpur market was one of the primary reasons in bringing forward a partial liberation of the route despite possible business impact particular on Malaysia Airlines. Both countries inked an agreement on 23 November 2007 to allow up to two flights a day for low-cost carriers from each country from 1 February 2008. The route will be fully liberalised on 1 December 2008, with a possibility of opening up other routes between Singapore and secondary Malaysian cities in planned meetings in early 2008. [http://app.mot.gov.sg/data/pr_07_11_23.htm]

Corporate Aviation

Based out of Seletar Airport (WSSL), Singapore provides the South East Asian hub for corporate aircraft sales and servicing. Although presently limited by runway length for operations of ultra-long range aircraft, Seletar offers corporate aircraft owners 24 hours access to Singapore and to manufacturer approved service centres, such as Jet Aviation (for Gulfstream Aerospace, Bombardier and Cessna) and Hawker Pacific (Hawker Beechcraft and Dassault Falcon).

Seletar is also the home base for several smaller charter aircraft operations serving regional corporate travel and aeromedical evacuations as well as charter brokers and aviation consultancies specialising in regional aircraft ownership and operation [http://www.asiacorporatejet.com Asia Corporate Jet]

Airport security

Security for the country's two international passenger airports, comes under the purview of the Airport Police Division of the Singapore Police Force, although resources are concentrated at Singapore Changi Airport where scheduled passenger traffic dominate. Seletar Airport, which specializes in handling non-scheduled and training flights, is seen as posing less of a security issue. Since the September 11, 2001 attacks, and the naming of Changi Airport as a terrorism target by the Jemaah Islamiyah, the airport's security has been stepped up. Roving patrol teams comprising of two soldiers and a police officer armed with machine guns patrol the terminals at random.

Assisting the state organizations, are the security services provided by the ground handlers, namely that of the Singapore Airport Terminal Services's SATS Security Services, and the Aetos Security Management Private Limited, formed from a merger of the Changi International Airport Services's airport security unit and that of other companies to become a single island-wide auxiliary police company. These officers man check-in counters to screen luggage, control movements into restricted areas, and so forth.

Since 2005, an upgrade in screening technology and rising security concerns led to all luggage-screening processes to be conducted behind closed-doors. Plans are also in place to install over 400 cameras around the airport to monitor passenger activity around the clock and to check on suspicious parcels and activity to prevent bomb attacks similar to the 2005 Songkhla bombings in Southern Thailand where Hat Yai International Airport was targeted. Tenders to incorporate such a system was called in late September 2005 [ [http://www.abc.net.au/ra/news/stories/s1473762.htm Radio Australia - News - Singapore to install more security cameras at Changi airport] ] .

References

Related links

*Airport Logistics Park
*Asian Aerospace
*Changi Airfreight Centre
*Civil Aviation Authority of Singapore
*Seletar Airport
*Singapore Changi Airport

External links

* [http://www.caas.gov.sg/caas/en/About_CAAS/Our_History.html# Singapore Civil Aviation History]
* [http://infopedia.nlb.gov.sg/articles/SIP_137_2005-02-02.html First paying passenger on a flight]
* [http://www.mindef.gov.sg/imindef/mindef_websites/atozlistings/air_force/about/museum.html Air Force Museum]
* [http://sg.geocities.com/sotong_onion/ Aerophilately in Singapore]
* [http://www.singaporeaircargo.com/combinedttd/Catalog.aspx?Ctry=SG&catalogname=SGTTD_AirCargo Singapore Air Cargo Directory]
* [http://www.edb.gov.sg/edbcorp/sg/en_uk/index/in_the_news/publications/singapore_investment3/singapore_investment/the_sky_s_the_limit.html The sky's the limit]
* [http://www.ainonline.com/Publications/asian/asian_04/d1_changip52.html Changi nurtures ailing avbusiness]
* [http://www.sedb.com/edbcorp/sg/en_uk/index/in_the_news/2003/2005/the_opening_of_st.html Opening of ST Aerospace Narrow-Body Hangar 500]


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