CONCORDE SERVICE BETWEEN LONDON AND SINGAPORE (Advantages)

Dr Ong Leong Boon asked the Minister for Finance if he will ascertain from Singapore Airlines (a) the rationale of Singapore Airlines entering into agreement with British Airways to operate the Concorde service between London and Singapore; (b) how this agreement will benefit Singapore Airlines; (c) if it will enhance the prestige, competitiveness and profitability of Singapore Airlines in international civil aviation; and (d) whether Singapore Airlines have fully studied and realised the controversies concerning the Concorde supersonic aircraft.

Mr Goh Chok Tong (for the Minister for Finance): Mr Speaker, Sir, I understand that the reasons for Singapore Airlines signing an agreement with British Airways to operate the Concorde between Singapore and London are financial, commercial and technical. While SIA does not expect the service to be a great money-spinner in its own right, it is satisfied that the Concorde will at least break even.

Commercially, the service will position SIA firmly in the forefront of the airlines of the world. The agreement with British Airways underscores the esteem of travellers for SIA from 13th place in 1970 to first place in triennial surveys in 1973 and 1976. SIA's partnership in a supersonic service will increase its aviation competence and business potential.

SIA will have the opportunity to acquire experience, over a period of time, of a now and advanced technology.

The entry of the Concorde into Singapore will consolidate Singapore's position as the communications crossroads of the Asia/Pacific region.

If by "controversies" the Member is referring to the long and eventually unsuccessful struggle by the Port of New York Authority to keep the Concorde out of Kennedy International Airport, the answer is, yes. Singapore has to examine the impact of Concorde on the environment in the light of its own circumstances. The Department of Civil Aviation is satisfied that a thrice-weekly service by the Concorde will not damage the environment, certainly no more than it does in London or Paris, Washington or New York.