AIR HUB

Mr Andy Gan Lai Chiang asked the Minister for Transport with growing competition from other countries setting in, what are the plans to keep Singapore an important air hub over the next 10 years.

Mr Yeo Cheow Tong: Sir, competition to Changi as a regional air hub is not new. Many new airports have opened in the region, offering new and larger capacity; more are being planned. In part, this is due to the rapid expansion of the air passenger and air cargo market as Asian economies grow. The Asian financial crisis and September 11 have temporarily disrupted the growth, but the long-term trend is positive. As a result, the competition amongst airports will continue to intensify.

To preserve our position as an air hub, we will continue to focus on three main areas. First, strengthening our position as a regional business and tourism hub. This ensures that there is high passenger traffic originating from and coming into Singapore. A strong economy also translates into large numbers of Singaporeans who can afford to travel abroad for business or on holiday.

Second, enhancing our connectivity. Fifty eight scheduled airlines now serve Singapore, connecting us with 50 countries and 139 cities. This huge network of air links provides the excellent connectivity that makes Singapore an important air hub. Passengers can fly into Singapore and catch a convenient connecting flight to his next destination.

Third, providing the highest standards of airport service. We take great pains to ensure that Changi Airport is well designed, equipped and managed, so that the airlines and air passengers who use Changi Airport find their Changi experience a memorable one.

As a result of all these efforts, Changi Airport has been rated highly by passengers, airlines, shippers and freight forwarders. Particularly noteworthy is the Eagle Award conferred on Changi Airport by the International Air Transport Association last year, as a token of the airlines' appreciation for the excellent service extended to them by Changi Airport. If we continue to remain relevant to the airlines and the passengers and alive to the competition, we will be able to keep Changi's hub status in the region for the long term.

Mr Andy Gan Lai Chiang (Marine Parade): Sir, with increased competition coming in, how are we to maintain our cost structure, especially when we are giving value-added services and adding new infrastructure to our airport?

Mr Yeo Cheow Tong: Sir, first, Changi Airport will continue to make sure that it runs a very tight ship, so that it can keep the cost down by being efficient. Secondly, Changi Airport keeps a very constant eye on the competition, to make sure that the rates that it charges are not out of line, and that airlines do find it profitable to continue calling at Changi Airport.