Changi Airport 25th Anniversary Dinner (2006)

SPEECH BY MR LEE KUAN YEW,
MINISTER MENTOR,
AT CHANGI AIRPORT 25TH ANNIVERSARY DINNER,
1 JULY 2006, 8.00 PM
AT THE RAFFLES BALLROOM,
SWISSOTEL THE STAMFORD


I am happy to join you this evening to celebrate the twenty-fifth anniversary of Changi Airport.


Remembering the Past


Singapore’s first civil airport was at Kallang. From 1937 it had only one runway. BOAC flying boats used to “land” on the Kallang River basin beside it. Paya Lebar Airport replaced Kallang in 1955.


By mid 1970s, it was clear that Paya Lebar Airport would not be able to cope with the growing traffic for much longer. We needed a bigger airport, with at least two runways. The proposal put up to me was to expand Paya Lebar and construct a second runway. We employed external consultants who made similar recommendations – that we should expand the existing Paya Lebar terminals and build a second runway by filling up the Serangoon River. This would be a difficult engineering task because of the soft clay of the river bed, so it would need special compaction equipment.


But I felt then that Paya Lebar had inherent disadvantages. It was located near the city centre. Expansion would be limited. Worse, noise and air pollution would become worse because the flight path footprint was already over our city centre. The alternative was to move to Changi, former RAF airbase at the easternmost corner of Singapore. There the landings and take-offs approaches would be over water. Our consultants did not recommend Changi because of the cost of relocating to Changi plus the loss of $800 million in investments already made on Paya Lebar. The Cabinet reluctantly agreed.


But before the plan was implemented the oil crisis erupted in 1973. The price of oil quadrupled from US$1.20 to over US$5.00 per barrel. Air traffic slowed down and the Boeing 747 jumbos entered service. So fewer planes were using Paya Lebar. This delayed the need for a second runway. I took this opportunity to re-consider the decision. I appointed Howe Yoon Chong, then Chairman of the Port of Singapore Authority, to head a team to study if we could move to Changi in time before a second runway was necessary. The team concluded that Changi was possible and could be ready by 1981. However between 1974 and 1981 we would have to invest in more facilities at Paya Lebar to meet the yearly increase in traffic.


Although this cost of relocating the airport to Changi was high, some $1.5 billion, I believed that in the long term this would be the better option. In April 1975, when I was in Washington, Goh Keng Swee, as Ag PM, sent me an urgent message that we had to make a quick decision if we wanted Changi Airport to be built in time by 1981. A few weeks earlier Saigon had fallen to the North Vietnamese. The future was uncertain. I set aside the implications of this political upset on growth and cabled back to him to proceed. Sim Kee Boon, Permanent Secretary of Communications, was tasked with building Changi Airport. He reclaimed land from the sea, and started construction of the first passenger terminal building in earnest. Kee Boon and his team completed Changi Airport with one runway in July 1981. Returning from New Zealand, my aircraft landed in the new Changi airport in August 1981. Kee Boon went on to make Changi Airport a world class facility.



Reviewing the Present


Today, we have an internationally rated Changi Airport. It is an icon Singapore can all be proud of.


When it opened in 1981, Changi Airport handled only eight million passengers and about 200,000 tonnes of cargo in the first year. Today, the passenger traffic has gone up four-folds while cargo traffic has grown by more than nine times. We now have two full service terminals and a budget terminal and two runways. A third terminal is due to open by early 2008.


Changi did Singapore proud when it won its first ‘World’s Best Airport’ award by the Business Traveller (UK) magazine in 1988. The management team continued to win this accolade for the next 18 years to 2005, despite the challenge from many new airports in the region vying aggressively to be better.


Over the years, Changi Airport has gone on to win top ratings from air travellers and travel magazines, picking up some 250 accolades to date. Such feedback from customers assures us that the world continues to enjoy the Changi Airport experience.


During this period, Singapore Airlines has gone on to become a global airline. The parallel growth of Changi Airport and Singapore Airlines has contributed to the success of the aviation cluster in Singapore.


Today, Singapore serves over 100 world-class aerospace companies and commands about six percent of the global maintenance, repair and overhaul industry market and about one quarter of the Asian market. The success of Changi Airport, SIA, the MRO (Maintenance, Repair and Overhaul) and air cargo sectors and their spin-offs have all contributed significantly to Singapore’s economic growth.


Anticipating the Future



However, as with all “icons” of success, previous achievements are no guarantee of its growth. The competition for Changi’s hub position has grown keener with newer, bigger airports around all with the latest equipment. Enhanced cost pressures on airports and airlines, new aircraft technology, and the introduction of low-cost carriers, they all add the pressures of competition on CAAS.


CAAS has responded well to these challenges. Over the past year, Changi has taken steps to keep airport costs competitive, improve efficiency and enhance service levels, and provide a friendly environment for airlines to grow. Changi must continue its efforts to upgrade and adapt its services and facilities in preparation for the challenges ahead. We will also continue to liberalise our Air Services Agreements (ASA) with China, India and ASEAN nations to facilitate the growth of both Singapore and foreign carriers at Changi.


Staying relevant and competitive in this changing environment can be achieved only through the collective efforts of all in the airport community.


No vision will be realised if we do not have committed and competent people in charge and supported by a cluster of organisations. Only together can they make Changi Airport the world’s best airport.


Today, there are more than 35,000 staff from various organizations working at the airport. And, more than 3,500 of these staff have been working at the airport for more than 25 years, that is, since 1981.


As our international gateway, Changi Airport gives all visitors an excellent introduction to the way Singapore works. Changi’s international recognition is a valuable and visible extension of Singapore’s reputation for excellence. Indeed, many of the foreign dignitaries visiting Singapore inspect the airport to find out the secret behind Changi’s success. They include the unions, airlines, ground handlers, air cargo companies, contractors, retailers, as well as government agencies, the Police, Immigration and Checkpoints Authority, and Singapore Customs. The commitment and support of all these organisations have contributed immensely to Changi’s success.


On behalf of the government and the people of Singapore, I record our recognition to CAAS and their supporting cluster for bringing Changi Airport to its present state. It has not been easy. Changi Airport will have many good years as long as there is a team to marshal the various bodies to deliver the renowned Changi Airport experience to Singaporeans and travellers alike.



1 July 2006


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