Abstract
The Air transport industry is growing globally and specifically in the Asia-Pacific region as the demand for air transport services grows and infrastructural development continues. Singapore has emerged as an important air transport hub in the Asia-Pacific region owing to its strategic geographical location, developed infrastructure, connectivity to other regions of the world, and its well-defined regulatory environment. Singapore is a major air transport hub as it is strategically located in the Strait of Malacca which puts it at the crossroads of important air routes, particularly between major economic blocs such as Japan and Europe. The emergence of Singapore Airlines as a leading global air transport service provider in the civil aviation industry facilitated by the combination of state ownership and professional management is one of the major factors that contributes to Singapore’s prominence in the air transport industry. Factors related to operational safety, setting regulatory bodies and agencies, and international recognition by agencies of the air services industry have contributed to the recognition of the country’s airline industry and operations. In particular, the country has set up The Civil Aviation Authority of Singapore (CAAS) which is involved with aviation development, regulations, and international coordination thus contributing to a safe, responsive, and efficient air transport industry in Singapore. This paper analyzes Singapore’s air transport industry with respect to aspects of geography, demography, economy, politics, major airlines, and major airports. Safety and regulatory compliance aspects will also be analyzed in the paper.
Country Analysis- Singapore
Geography
Singapore is an island city-state that consists of 63 islands including the main island located between Indonesia and Malaysia (Malayan Peninsula) and over the years, land reclamation activities have led to the increase of the country’s land area by merging smaller islands. In the 1960s, Singapore’s land area was 581.1 sq. km and between 2014 and 2015, the country’s land areas has increased from 718.3 sq. km to 719.1 sq. km due to land reclamation projects (Department of Statistics Singapore, 2016). Over 20% of the country’s land area is made up of forests and natural reserves that have been reduced in the recent years as urbanization is realized in the country. The country’s terrain is classed as lowlands with the Bukit Timah Hill being the highest natural point at 537 ft. The country’s climate is classified as tropical with temperatures ranging between highs of 31.9 degrees and 25.8 degrees.
The increase in land mass is an important strategic aspect that facilitates logistical support with respect to air transportation. It is also on the basis of the increased land mass that infrastructural development is realized with the development of national networks of air services. The lowlands are characterized largely by a plain landscape with little hillocks and form an undulating terrain which allows smooth operations of aircraft on a flight. Singapore’s geographic configuration with respect to its land masses endows the country with a strategic location for air transport because of the understanding that its terrain and vast land mass is critical in the development of aviation infrastructure and the creation of internal networks. With respect to the geography of Singapore, despite the potential constraint of limited space, maximizing the value of the space through detailed physical planning has been key in developing the country as an air transport hub. The country has also been proactive in setting up the infrastructural support and fostering a favorable economic climate to facilitate the operations of the airline industry which is the major source of transport in the Asia-Pacific region
Demographics
Singapore has an estimated population of about 5.7 million according to a report presented by Singapore Department of Statistics (2016), and the median age is 34 years. Singapore’s young majority population is a valuable aspect in relation to the availability of labor for different industries. About 3.5 million people in the country occupy Singapore, which is the capital city of the country with others concentrated in other planning areas such as Bedok, Changi, and Rochor (Singapore Department of Statistics, 2016). The primary languages are Mandrin, English, and Malay which are spoken cumulatively by over 72% of the country’s population. The major ethnic group in the country is the Chinese making up over 76% of the total population followed by Malay, Indian and others making up 14%, 8%, and 1.4% respectively. The dominant religions are Buddhism, Islam, and Taoism making up 42.5%, 14.9%, and 8.5% of the population respectively (World Atlas, 2016). The diversity and huge population in the city indicate demographic shifts, changes in consumer lifestyle, and results in a higher travel propensity all of which have a positive effect on the air transport industry in the country. With respect to the country’s small geographical size, there may be benefits, notably greater social cohesion and the absence of a backward rural sector which improves the quantity and quality of human resources in the country.
Economy
Singapore’s economy exhibits increasing resilience to the changing global conditions and this is attributed to the pragmatic macroeconomic management and continuous structural reforms. The country has exerted strenuous effort to promote economic development. The country’s economic success is often explained in terms of its geographical location, continuous industrial restructuring, technology upgrading and changes in the structure of the economy since the 1960s (Wong, Ho, & Singh, 2010). Trade, transport, manufacturing, and communication, as well as services, are the main sectors of the country’s economy. The economic performance of the country has been impressive considering that the total GDP stood at $325.1 billion and GDP per capita at $60,900 according to the 2012 estimates (World Atlas, 2016). Over the last four decades, the country’s average GDP growth annually has been approximated at 7% (Wong et al., 2010).
Singapore operates based on a metropolitan economic strategy that is pro-business and encourages foreign investments combined with state-directed investments. At the core of the strategy are issues related to human capital mobilization, continuous infrastructural development, and the strategic role of the government. According to the Ministry of Transport and Industry (2014), the overall economic growth was estimated at 5.5% between 2012 and 2013 and is expected to exhibit similar growth mainly due to overall growth of factors like labor productivity, external and internal demand for products and services, and the contribution by the business service, transport, and storage industries. The air transport sector has been a key growth sector of the country’s economy since independence given Singapore's status as the regional aviation hub. Singapore’s economic development and air transportation interact with respect to the understanding that the country’s economic activities generate a demand for air transportation services and attract foreign firms in the aviation sector to invest in the country due to its favorable policies and investment climate (Ishutkina & Hansman, 2009). In addition, the availability of labor and support infrastructure also influence the interaction. Singapore benefits from excellent transport infrastructure, with ground transport infrastructure and air transport infrastructure all of which are facilitated by the strong economy that gives room for infrastructural development.
Politics
As a unitary state, Singapore enjoys a reputation for political stability and an effective government facilitated by its multiparty system and parliamentary representative democracy. The political system of Singapore is guided by the supremacy of the constitution and the rule of law. The president is the head of state and the Prime Minister the head of government. The current president and prime minister of Singapore are Tony Tan and Lee Hsein Loong. The country’s political democracy promotes political stability, which underpins economic growth and social order as well as providing room for the formulation of policies that support the liberalization of market access and stopping unnecessary government intervention from determining industry players that can access the country’s economic sphere. It can be analyzed as a country that practices neoliberalism.
Major Airlines
Singapore Airlines (SIA) is the major airline in the country and its flag carrier. Another major airline is Jetstar Asia Airways. Singapore Airlines has 111 registered aircraft and its fleet includes Boing 777, Airbus A350, and Airbus A330. The airline has employed 24,574 people that serve in various capacities and roles. The company serves 32 countries in which over 60 destinations of the airline’s destinations are located. The airlines’ hub is located in Singapore, Changi Airport. Singapore Airlines is a Star Alliance member since 2000. Jetstar Asia airways has a fleet size comprising 29 aircraft, 11 Boeing 787-8, and 18 Airbus A320 (Jetstar, n.d.). The airline’s key hub is Singapore Changi Airport and serves 28 destinations in its regional East Asia routes in countries like Japan, Taiwan, and Hong Kong. The airline is a member of the Jetstar group consisting of Jetstar Airways in Australia, Jetstar Pacific Airlines, and Jetstar Japan.
Major Airports
Singapore Changi Airport/Changi Airport and Seletar Airport are the major airports in Singapore. The airports provide a comprehensive range of air transport and aviation services to the international aviation community that is commensurate with Singapore’s status as a major air hub. Changi Airport, the largest international airport located at the eastern edge of Singapore, handles over 7,000 flights weekly and over 55.4 million passengers annually and serves as the passage for over 6,000 deplaning and enplaning passengers every hour. Today, Changi Airport is the preferred choice for international air transport services for both passengers and air cargo and thus a preferable hub for major Airlines in Singapore. Seletar Airport is a domestic airport located in the north-eastern region of Seletar that can handle up to 700,000 enplaned passengers annually. It is much smaller than Changi International Airport but over the years, the airport has been upgraded, improved, and thus put in the forefront of the global air routes.
Safety Oversight
The Civil Aviation Authority of Singapore (CAAS) formed in September 1984 regulates and provides safety oversight management over Singapore registered aircraft and civil aviation, publishes safety directives, provides air navigation services, and develops aviation knowledge and human resource development. CAAS is a statutory board under the Ministry of Transport and represents the government in the negotiation of air services agreements as well as advises on matters related to civil aviation. The agency works towards ICAO's mission of promoting safety, security, and reliability in international civil aviation.
Air Navigation Service Provider
CAAS provides air navigation services in Singapore and focuses on the development of the air hub and aviation industry in the country. The main focus of the provider is to review and improve Air Traffic Services (ATS) quality for both domestic and international flight over Singapore’s territory, provide flight information services, and alert services (CAAS, 2017). With respect to the provision of air navigation services, CAAS is responsible for aspects such as airspace planning, coordination, and administration to ensure aircraft operations in the Singapore airspace are protected against hazards. The agency ensures that airports and other air navigation facilities in the country with the inclusion of radio and meteorological services are reasonable for a safe, regular, efficient and economical operation of local and international air services.
Accident Investigation
Singapore’s commercial air transportation industry is known for its high-quality service and safety consideration but several aircraft accidents have been reported over the past decade. On 27th June 2016, a Singapore Airlines flight SQ368 involving a Boeing 777 scheduled to fly from Changi Airport to Milan Airport in Italy was involved in an accident (Air Accident Investigation Bureau of Singapore, n.d.). There was no reported causalities or fatalities in the accident. The accident was caused by fuel entering the oil system which led to the right engine catching fire and damaging the wing. Over the past 10 years, Jetstar airways have not reported any accidents.
Safety Status
Ensuring an excellent safety record remains an important consideration not only for agencies concerned with air transport in Singapore but also air transport companies in the country. With reference to the EU Ban List, Singapore or its major airlines, Singapore Airlines and Jetstar Asia airways are not on the list. This is attributed to the country’s and the airline’s adherence to international safety and operational standards. Singapore is in the Category 1 according to the FAA IASA Rating, meaning it meets the ICAO standards (FAA, 2016). The rating is attributed to the fact that Singapore has laws and regulations in place that oversee the commercial civil aviation industry in general in accordance with the international standards as defined by ICAO in addition to the establishment of The Civil Aviation Authority of Singapore (CAAS) which is the equivalent of FAA. Both Singapore Airlines and Jetstar Asia Airways have been listed on the IATA Operational Safety Audit (IOSA) registry. Singapore Airlines was Asia's first and the world's third airline accredited by IATA with the IATA Operations Safety Audit. According to the ICAO’s Universal Safety Oversight Audit Program (USOAP) results, Singapore’s air industry is ranked above average with the aspect of legislation score at 100%, organization 100%, licensing 96.3%, operations 100%, airworthiness 98.11%, investigation 96.84%, air navigation services 98.45%, and aerodromes 99.32%. This means that Singapore’s airline industry operates with adherence to ICAO regulations, procedures, and policies.
References
Air Accident Investigation Bureau of Singapore (AAIB). (n.d.). Interim Report. Ministry of Transport. Retrieved from https://www.mot.gov.sg/uploadedFiles/Ministry_of_Transport/Content_Blocks/About_MOT/Air_Transport/AAIB/B777-300ER%20Engine%20Fire.%20Interim%20Statement%20-%202016-07-29.pdf
Civil Aviation Authority of Singapore (CAAS). (2017). Air Navigation Services. Civil Aviation Authority of Singapore. http://www.caas.gov.sg/caasWeb2010/export/sites/caas/en/About_CAAS/Our_Strategic_Thrusts/Air_Navigation_Services/index.html
Federal Aviation Administration (FAA). (2016, December 16). International Aviation Safety Assessment (IASA) Program. (2016). FAA Flight Standards Service. IASA. Retrieved from https://www.faa.gov/about/initiatives/iasa/
Ishutkina, M. A. & Hansman, R. J. (2009). Analysis of the interaction between air transportation and economic activity: a worldwide perspective (Doctoral dissertation). Massachusetts Institute of Technology Cambridge, MA 02139 USA.
Jetstar Group. (n.d.). Jetstar Group fleet. Jetstar. Retrieved from http://www.jetstar.com/nz/en/about-us/our-fleet
Ministry of Transport and Industry. (2014). Economic Survey of Singapore 2013: Main Indicators. Ministry of Transport and Industry.
Wong, P. K., Ho, Y. P., & Singh, A. (2010). Industrial cluster development and innovation in Singapore. In M. Tsuji & A. Kuchiki (eds.), From Agglomeration to Innovation: Upgrading Industrial Clusters in Emerging Economies (pp. 50-117). Basingstoke: Palgrave Macmillan.
World Atlas. (2016). Singapore Facts. Retrieved from http://www.worldatlas.com/webimage/countrys/asia/singapore/sgfacts.htm
Appendix 1- Singapore Country Map
