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Singapore Changi Airport Air Hub News Apr-Jun/2015 Issue 21 Kia Ora! Air New Zealand Makes a Strong Comeback Changi Airport crosses 54 million passenger mark in 2014 Changi Airport bags Skytrax's World's Best Airport for third year running

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Singapore Changi Airport Air Hub News

Apr-Jun/2015Issue 21

Kia Ora! Air New ZealandMakes a Strong Comeback

Changi Airport crosses54 million passenger mark in 2014

Changi Airport bags Skytrax's World's Best Airport for third year running

AIR CARGOForging Partnerships and Gaining Insights on Southeast Asia’s Air Cargo Landscape at Let’s Talk Cargo! 2015

Changi Airport handles 10,000 Colombian Roses during Valentine’s Day

DHL Express invests S$140 million in South Asia Hub at Singapore Changi Airport

INGAPORE FOCUSS

Editorial tEam

Donald Tan, Vice President, Airline Development

Damon Wong, Assistant Vice President, Airline Development

Tan Ping Hong, Assistant Manager, Airline Development

James Fong, Assistant Vice President, Cargo & Logistics Development

Contributors tEam

Jaisey Yip, Senior Manager, Airline Development

Tan Shu Yee, Senior Manager, Airline Development

Toh Ern Chong, Manager, Airline Development

Samantha Yuan, Manager, Airline Development

Nicole Chia, Senior Associate, Air Hub Strategy

Jordan Tan, Manager, Cargo & Logistics Development

Lim Shyan Jun, Senior Associate, Cargo & Logistics Development

Eileen Thian, Associate, Cargo & Logistics Development

Louisa Soon, Manager, Passenger Development

Neo Wei Shan, Assistant Manager, Passenger Development

Adeline Lee, Assistant Manager, Passenger Development

Ng Sie Yen, Senior Associate, Passenger Development

Changi Insight is published quarterly.

Design by Meta Fusion Pte Ltd.

MICA (P) 189/04/2014

For enquiries on aviation business opportunities with Changi Airport,

please contact [email protected]

www.changiairportgroup.com

CONTENTS

03 COVER FEATUREAir New Zealand makes a strong comeback

NETWORK GROWTHLatest updates on Changi Airport’snetwork and services

06 CHANGI STATISTICSPassenger and airfreight data

10 FIRST PERSONMr Benjamin Tan, Regional General Manager Asia, Qantas Airways

08

1311 EVENTS

15 CHANGI NEWS

NATAS TRAVEL FAIR 2015

Every year, the National Association of Travel Agents Singapore (NATAS) organises two of the largest consumer travel fairs Singapore. Its first for 2015, the NATAS Travel Fair, was held on 6-8 March 2015 at Singapore Expo. The 3-day event saw over 90 exhibitors, including travel agents, airlines, national tourism organization, cruise liners and other travel related companies all gathering under one roof to offer competitive travel deals. Amongst these exhibitors were participants such as Air New Zealand (ANZ) and Lufthansa, who took the opportunity to showcase their latest in-flight products. Having just recently launched its Auckland-Singapore flights on 6 January this year, the NATAS Fair was a good platform for ANZ to raise awareness of its services and also New Zealand’s tourism attractions. Visitors were treated to a Maori Kapa Haka performance and could also purchase the many attractive New Zealand travel packages on offer. In total, the 3-day fair attracted over 55,000 visitors. Destinations such as continental Europe, Japan, South Korea, China and Australia remained the perennial favorites amongst visitors, while cruising and exotic countries such as Brazil, Denmark and Norway also saw more interest and bookings.

NATAS 2015 Opening Ceremony

ChANgI AIRpoRT SCoRES hIgh IN puNCTuALITy

With more than eight in 10 flights last year landing and taking off within 15 minutes of the scheduled times, Changi Airport has been named as Asia Pacific's second most punctual in the large-airport category under a global ranking by aviation consultancy OAG. Worldwide, Changi Airport comes in fourth. Changi Airport Group remains committed to work with partners to ensure readiness of the aircraft for on-time departures.

2 — CHANGI INSIGHT Issue 21

AIR NEw ZEALANd MAkES A STRoNg CoMEbACk WITH A STRATEGIC ALLIANCEWITH SINGAPORE AIRLINES

VIPs at the welcome event in Changi AirportProsperous welcome for Air New Zealand

ChANgI AIRpoRT SCoRES hIgh IN puNCTuALITy

OVER FEATUREC

On 6 January 2015, Changi Airport welcomed the return Air New Zealand and her successful launch of its daily Auckland-Singapore service. After a decade’s hiatus, Air New Zealand made a strong comeback with a strong strategic business partner. In early 2014, the proposed alliance between Air New Zealand and Singapore Airlines was approved by both the Competition Commission of Singapore and the New Zealand Ministry of Transport. This partnership is envisaged to bring about significant benefits not only to passengers, but also to both Singapore and New Zealand’s air hub positions. With an increase in total capacity on the Singapore-Auckland route by up to 30%, the alliance will strengthen Singapore’s connectivity to New Zealand and the Pacific Islands through Air New Zealand’s network of almost 40 destinations in the Southwest Pacific region. At the same time, this will also give New Zealand access to over 50 destinations in Southeast Asia, Europe and South Africa through the Singapore Airlines and SilkAir network. The new service operated by Air New Zealand will also foster stronger people flow between the two countries. Today, New Zealand is a very popular destination both locally and globally. Most recently, she has been voted by Wanderlust readers as the Top Destination. For a small country with less than 5 million population, New Zealand offers endless supply of breath-taking landscapes, experiences,

adventures and attractions. Film tourism further boosts New Zealand’s popularity with the release of Lord of the RingsTM and The Hobbit TM Trilogies. Singapore is presently the country’s 9th largest source of international visitor arrivals. In 2014, New Zealand welcomed over 46,000 Singapore visitors, marking an impressive 11% year-on-year growth. With the recommencement of Air New Zealand and the strategic alliance between Air New Zealand and Singapore Airlines, it is timely that Changi Airport takes part in promoting our air connectivity to New Zealand and her dynamic tourism developments. A notable collaboration is the “Naturally New Zealand” in-airport event. From 14 March to 5 April this year, an elaborate New Zealand-themed set-up will be erected in Changi Airport Terminal 3 departure hall, highlighting the country’s breathtaking nature, stunning tourism attractions and delightful offerings. Changi Airport and Tourism New Zealand have also brought a slice of Middle-earth to Singapore for a display. Moving ahead, Changi Airport looks forward to a close partnership with Air New Zealand, as well as other key partners including Singapore Airlines, Tourism New Zealand, Auckland Airport and Christchurch Airport to jointly promote air services between Singapore and New Zealand.

CHANGI INSIGHT Issue 21 — 3

ENhANCEd SuPPORt fOR AIRlINE PARtNERS

2014 was a challenging year for the aviation industry, especially in Southeast Asia. CAG responded quickly to the situation by introducing a wide-ranging Growth and Assistance Incentive (GAIN) programme. With GAIN, CAG is committing a total of S$100 million through various initiatives and measures aimed at lowering costs for airlines, boosting passenger traffic and improving operational efficiency at Changi Airport. Under the GAIN programme, all airlines operating at Changi Airport across-the-board rebates of 50% on aircraft parking fees and 15% on aerobridge fees.

Singapore Changi Airport managed 54.1 million passenger movements in 2014, the most in its 33-year history. This was a 0.7% increase compared to the whole of 2013. Cargo

volumes were stable at 1.84 million tonnes while flight movements dipped 0.7% to 341,390 for the year. Travel to and from Thailand and China continued to show signs of recovery at the end of 2014. In Thailand’s case, seat capacities and flight frequencies to Bangkok have also been restored to end-2013 levels, before travel to the country was impacted by the political situation.

RESIlIENCE IN A ChAllENGING ENVIRONMENt

Despite the challenges facing the aviation industry in the region, passenger traffic at Changi Airport grew, albeit at a more moderated rate compared to previous years. While traffic to the South Asia and Northeast Asia regions rose 6.0% and 4.0% respectively, this was offset by weaker performance on European and Southeast Asian routes. Accounting for more than 7.5 million passengers in 2014, Indonesia continued to be the airport’s top country market, followed by Malaysia, Australia, Thailand and China. In terms of Changi’s busiest routes, the top 10 destinations remained unchanged with Jakarta, Hong Kong, Kuala Lumpur, Bangkok and Manila taking the top five spots. For the second year in a row, Denpasar-Bali was the fastest growing among the top 10 routes, enjoying a robust 15.7% growth on-year.

StABlE CARGO VOluMES

Changi Airport’s total cargo throughput for 2014 increased 0.3% compared to a year ago, as higher imports and exports offset lower transshipment volumes. Airfreight shipments between Singapore and Japan rose 7.5% on-year, boosted by the commencement of a new Okinawa-Singapore freighter service operated by ANA Cargo. Two of Singapore’s key trade partners – Australia and China – also exhibited positive growth of 5.7% and 1.3% respectively. During the year, Changi Airport also enhanced its reputation as a trusted transshipment hub for temperature-sensitive cargo when SATS Coolport received the world’s first ‘Centre of Excellence in Pharmaceutical Handling’ certification by IATA.

OVER FEATUREC

ChANgI AIRpoRT CRoSSES 54 MILLIoN pASSENgER MARk IN 2014

4 — CHANGI INSIGHT Issue 21

GAIN provides temporary relief for airlines while laying the foundation for more efficient operations at Changi Airport in the years ahead. CAG’s incentives and support programmes beyond this year will be calibrated depending on how traffic patterns at Changi Airport and how the operating conditions of airlines in the region develop. Over and above GAIN, additional landing fee rebates were provided for long-haul flights and an incentive scheme (Gateway Incentive) was rolled out for airlines to grow transfer traffic through Changi Airport.

NEW AIRlINES ANd CIty lINKS

Changi Airport welcomed six new carriers in 2014. The arrival of MIAT Mongolian Airlines and Uzbekistan Airways enhanced Changi’s connectivity to Central Asia, with the launch of new services to Ulaanbaatar and Tashkent respectively. Jetstar Pacific, Malindo Air, Tigerair Taiwan and VietJet rounded up the list of new additions to Changi’s family of airlines. Besides the new links to Mongolia and Uzbekistan, Changi Airport also added new services to Lanzhou and Xi’an in China, Okinawa in Japan, Seattle in the United States and Phu Quoc in Vietnam, bringing the total number of new destinations in 2014 to seven.

OutlOOK fOR 2015

2015 is expected to be another challenging year for Changi Airport and the aviation sector. Lower oil prices will offer some relief to the sector. Nonetheless, with the global economy still struggling to gain any momentum, airlines will have to continue to watch their bottom lines closely in an increasingly low-yield environment. Competition from other airports will continue to intensify, and the manpower situation will continue to be a challenge too. Changi Airport has embarked on several projects to strengthen its value proposition to travelers. This means that parts of the airport will be affected over the coming years as certain facilities will be relocated to allow construction works to take place. CAG will work closely with its partners to minimise the impact of these works and ensure safety. CAG looks forward to the steadfast support of the airport community to make the airport an even better one for everyone.

The late Mr Lee Kuan Yew, Singapore's founding leader and first Prime Minister, not only transformed Singapore to a First World nation but also personally shaped

Singapore's aviation industry. Without him, Changi Airport would not exist today. It was Mr Lee who took the difficult decision to move Singapore's international airport from Paya Lebar to Changi despite the recommendations of foreign experts to expand the former. It meant writing off some S$800 million that had already been invested in Paya Lebar and a commitment of S$1.5 billion in the late 1970s to develop the new airport. This was a bold move, but as Mr Lee himself said, "one of the best $1.5 billion investments we ever made". Mr Lee took a personal interest in the development of the new airport at Changi. He flew over the site to oversee construction, ensuring that Changi Airport was to become a shining beacon of the Singapore brand in the global economy. His unique vision and leadership paid off, resulting in one of the most recognised airports in the world today. Over the years, the Singapore Government has continued Mr Lee's vision of developing Singapore as an important hub for global aviation with strong support for open skies and liberalisation in the industry. These have reaped multi-fold benefits for the Singapore economy and hundreds of thousands of jobs. Changi Airport Group remains committed to maintaining Changi Airport's reputation as one of the world's best. We continue to pursue Mr Lee's vision to drive innovation and pursue excellence both in Singapore and overseas.

A TRIbuTE ToMR LEE kuAN yEw (1923 – 2015)THE PIONEER OF SINGAPORE AVIATION

Special commemorative tribute to the late Mr Lee, located at the departure level of Changi Airport Terminal 3

CHANGI INSIGHT Issue 21 — 5

hANGI STATISTICSC

Top 5 Short-Haul Cities (by Passenger Movements)

Cities Passenger Movements

(feb 2014-Jan 2015)

1 Jakarta 3,948,175

2 Hong Kong 3,673,603

3 Kuala Lumpur 3,590,726

4 Bangkok 3,321,626

5 Manila 2,016,189

16,550,319 (31.2% of total pax movements)(Short-haul defined by flight time of less than 4 hours)

Top 5 Medium-Haul Cities (by Passenger Movements)

Cities Passenger Movements

(feb 2014-Jan 2015)

1 Tokyo 1,888,425

2 Taipei 1,450,358

3 Sydney 1,410,414

4 Shanghai 1,248,657

5 Seoul 1,230,976

7,228,830 (13.6% of total pax movements)(Medium-haul defined by flight time of 4 – 8 hours)

Top 5 Long-Haul Cities (by Passenger Movements)

Cities Passenger Movements

(feb 2014-Jan 2015)

1 London 1,119,557

2 Frankfurt 630,229

3 Paris 427,575

4 Zurich 401,412

5 Auckland 377,210

2,955,983 (5.6% of total pax movements)(Long-haul defined by flight time of more than 8 hours)

Top 3 Fastest Growing Regions (by Passenger Movements)

North East Asia West Asia South Asia

fEB 2014-JAN 2015 fEB 2014-JAN 2015 fEB 2014-JAN 2015

13,694,026 1,292,016 4,637,378fEB 2013-JAN 2014 fEB 2013-JAN 2014 fEB 2013-JAN 2014

13,373,366 1,247,431 4,374,944

GROWth GROWth GROWth

2.4% 3.6% 6.0%

45%South East Asia

26%North East Asia

10%Oceania

7%Europe

8%South Asia & Africa

2%West Asia

1%Americas

Total Passenger Movement By Region (Feb 2014-Jan 2015)

pASSENgER STATISTICS

Passenger Movements (Rolling 12 months from Feb 2014-Jan 2015)

59.00

54.00

49.00

44.00

39.00

JAN FEb MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

milli

ons

360

340

320

300

280

260

240

220

Aircraft Movements (Rolling 12 months from Feb 2014-Jan 2015)

JAN FEb MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Thou

sand

s

2014 / 2015

2013 / 2014

2012 / 2013

2014 / 2015

2013 / 2014

2012 / 2013

6 — CHANGI INSIGHT Issue 21

1,880

1,870

1,860

1,850

1,840

1,830

1,820

1,810

AIRFREIghT STATISTICS

Top 10 Cargo Markets (Feb 2014-Jan 2015)

1. China2. Australia3. Hong Kong4. United States5. Indonesia6. India7. Japan8. Germany9. United Kingdom10. Thailand

102 Scheduled Airlines302 City Links79 Country Links6,554 Weekly FlightsAs of 1 Feb 2015

INTERNATIoNAL LINkS

Cargo Movements (Rolling 12 months from Feb 2014-Jan 2015)

JAN FEb MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Thou

sand

Ton

nes

**The statistics are provided for your convenience only and are not to be treated nor relied upon by any person as any kind of advice.

As the statistics have been provided to Changi Airport Group ("CAG") by third parties, CAG is in no position to verify the veracity or correctness of any of the published statistics. CAG shall not be liable for any damage or loss suffered by any party as a result of the use of, or reliance upon the statistics or information provided in this publication.

New Zealand

Australia

Papua New Guinea

timor-leste

Brunei

Indonesia

South Korea

Japan

PhilippinesCambodia

hong Kongtaiwan

Malaysia

thailand Vietnam

Bahrain Macau

Myanmar

Russia

China

Nepal

Bangladesh

India

Sri lanka

Maldives

Mauritius

South Africa

Greece

Portugal

Kenya

Ethiopia

Brazil

uSA

Canada

OmanSaudi Arabia

Egyptunited Arab Emirates

Sweden

Polandunited Kingdom

denmark

Norwayfinland

turkeySpain

Azerbaijan

francehungary

luxembourgSwitzerland

Italy

Czech RepublicBelgiumAustria

Netherlands Germany

Qatar

Singapore

BhutanKuwait

lithuania

uganda

Rwanda

Republic of Congo

tanzania

Burkina faso

uzbekistan

ukraineBulgaria

Albania

Estonia

Cote d'Ivoire

Senegal

2014 / 2015

2013 / 2014

2012 / 2013

laos

CHANGI INSIGHT Issue 21 — 7

SCOOt lAuNChES INtERlINE WIth VIRGIN AuStRAlIAScoot announced in January that it has expanded its Australian network to eight more cities through a new interline agreement with Virgin Australia. The destinations are Adelaide, Ayers Rock, Brisbane, Canberra, Cairns, Hobart, Launceston and Melbourne.

Passengers flying to Australia on Scoot flights are able to purchase tickets through to these cities in a single transaction.

fIRSt A350 SERVICE tO SINGAPORE ChANGI AIRPORt Qatar Airways will launch a new additional daily flight from June 2015. This is in addition to the existing two daily flights between Doha and Singapore. All flights will eventually be operated by the new A350XWB aircraft this August. Changi Airport will be the first airport in Asia Pacific to receive this new aircraft type.

XIAMEN AIRlINES tO lAuNCh NEW dAIlyXI'AN-hANGZhOu-SINGAPORE SERVICEWith effect from 29 March 2015, Xiamen Airlines will launch a newdaily Xi'an-Hangzhou-Singapore bidirectional service. The existing Hangzhou-Fuzhou-Singapore bidirectional service will be converted into a daily Fuzhou-Singapore bidirectional terminator service. With this new development, Xiamen Airlines will now operate four daily services from Changi Airport, serving seven cities in China -- Xiamen, Fuzhou, Hangzhou, Xi'an (via Hangzhou), Zhengzhou (via Xiamen), Dalian (via Xiamen) and Tianjin (via Xiamen).

SRIlANKAN AIRlINES ENtERSINtO COdEShARE AGREEMENt WIth JEtStAR ASIAFrom 5 April 2015, SriLankan customers will be able to travel on codeshare services operated by Jetstar Asia on seven routes from Jetstar Asia’s hub in Singapore. The cities of Darwin, Phnom Penh and Phuket will be new destinations to SriLankan’s customers. The other destinations to be included are Bangkok, Ho Chi Minh City, Kuala Lumpur and Perth. Changi Airport welcomes this development between SriLankan Airlines and Jetstar Asia as not only would it promote greater people flow between South Asia and Southeast Asia/Australia via Changi, but also grow both airlines' businesses in Singapore.

EtWORK GROWTHN

NEw SERVICESANd FREquENCy ChANgES

Airline CityNew Weekly Services

(total Resultant Weekly Services)Effective

date

Oman Air (Wy) Muscat 7 (7) 29-Mar-15

Oman Air (Wy) Kuala Lumpur 7 (7) 29-Mar-15

Singapore Airlines (SQ) Bangkok 2 (37) 29-Mar-15

lao Airlines (QV) Luang Prabang 3 (3) 29-Mar-15

Bangkok Air (PG) Koh Samui 3 (10) 29-Mar-15

VietJet Air (VJ) Ho Chi Minh City 7 (14) 30-May-15

Qatar Airways (QR) Doha 7 (21) 1-Jun-15

Air france (Af) Paris 3 (10) 10-Jun-15

All Nippon Airways (Nh) Tokyo (Narita) 7 (14) 11-Jun-15

EVA Air (BR) Taipei 4 (11) 21-Jun-15

Singapore Airlines (SQ) Sydney 3 (31) 30-Jul-15

Scoot (tZ) Melbourne 5 (5) 1-Nov-15

8 — CHANGI INSIGHT Issue 21

From 9 August 2015, coinciding with the 50th anniversary of Singapore’s independence, Singapore Airlines will roll out a new Premium Economy Class product. Customers travelling on select flights from Singapore to

Sydney will be the first to experience the new cabin class, which will subsequently be made available to other destinations served by the airline’s Airbus A380s and Boeing 777-300ERs, in addition to the future fleet of Airbus A350s. Each seat offers 38-inch pitch and 8-inch recline, plus a calf rest and foot bar. Complementing this is a sleek 13.3 inch full HD monitor, the largest in its class. Customers in Premium Economy Class can choose from a more extensive range of food and beverage offerings. Champagne will be offered, in addition to a selection of curated wines, throughout the flight. Flights to Auckland, Beijing, Delhi, Hong Kong, Frankfurt, London, Mumbai, New York, Shanghai, Tokyo and Zurich will have premium economy product in the later part of 2015 and early 2016.

INTRODUCTION OF SINgApoRE AIRLINES’ pREMIuM ECoNoMy CLASS

SCOOT RECEIVES FIRST boEINg 787 dREAMLINER

Changi Airport welcomed Scoot’s first Boeing 787 Dreamliner – Dream Start - on 2 February 2015. Not only this is the first B787

Dreamliner to be based at Changi Airport, Scoot is also the first carrier to operate the -900 variant at Changi Airport. Hong Kong and Perth are Scoot’s first two destinations to have Dreamliner operations, from 5 February 2015. This development opens up new opportunities for Scoot and Changi Airport to reach out to new markets in North Asia and Southwest Pacific. For this special occasion, Changi Airport arranged for a water cannon salute to wish Scoot and its B787 routes prosperity and success.

A roaring welcome for Scoot's first Dreamliner at Changi

CHANGI INSIGHT Issue 21 — 9

qANTAS AIRwAyS:CELEBRATING 80TH ANNIVERSARYIN SINGAPOREAn exclusive interview with Mr benjamin Tan, Regional General Manager Asia

Mr Benjamin tan

Qantas is celebrating its 80th Anniversary in Singapore this year. how do you see the development of passenger traffic between Australia and Singapore in the years ahead? Singapore and Australia are much more closely tied than many people realise. There are lots of Aussies living and working in Singapore, and also lots of Singaporeans living, working and studying in Australia. Singapore is a top 5 two-way trading partner to Australia, and Australia is among the top tourist destinations for Singaporeans. The list goes on. The deepening social and economic links between Singapore and Australia bodes very well for the development of passenger traffic. Qantas looks forward to participating in that growth.

how will Qantas be celebrating its 80th anniversary of international operations and flying to Singapore?The comprehensive upgrade of our product is a key part of celebrating Qantas’ 80th year of international operations. Singapore - being our first international destination - will be the very first market in Asia get our enhanced offering. We will be working closely with Changi Airport as a pioneering airline to commemorate this milestone, and will also be running a series of promotions to extend our hospitality to more travellers in Singapore. I look forward to being in a position to make more comprehensive announcements along the way!

IRSt PERSONf

Prior to your current position, you spent a few years with Jetstar Group. how has it been like switching roles from a low cost carrier to a premium carrier? Both the low cost and premium segments of aviation have to react very quickly and pragmatically to changes in market conditions. Both have to be focused on brand-building as a means of differentiation in a highly competitive marketplace. The LCC product tends to be quite commoditised in nature, so brand-building can be a pretty hard thing to do. LCCs are better positioned for, and more focused on short term selling. Premium carriers tend to have greater leeway and scope for driving differentiation in product and positioning, and also have to be more disciplined, segmented and long-term in approach. I am very fortunate to have had the opportunity to work in both, and it continues to be a wonderful learning experience for me.

Qantas has recently introduced its retrofitted A330s featuring an all-new Business Suite to the Singapore market. What are some of the special features and competitive edges? The new Qantas Business Suites are shaped by extensive ergonomic trials and inflight monitoring with a panel of experts, as well as ongoing feedback from our customers. It is designed for practicality, comfort, privacy and style, and is the only Business Class product in the world that enables gate-to-gate recline, from take-off through to landing. This means more time for our customers to rest and sleep before arrival. The generous amount of space also means our customers will be able to eat, work and store their luggage with greater comfort and convenience than ever before. While we are proud of our new Business Suites, Qantas has also been extremely conscious and proactive about investing in every class of travel. For example, Qantas was awarded Best Premium Economy Catering in the Skytrax World Airline Awards, and are deploying a new Economy Class product, which will feature our next-generation Recaro seats, with larger seatback touchscreens and also the option to stream content directly to the customer’s own device. Our upgraded Economy Dining also increases meal portions by 50%, and provides up to 3 options including Wagyu beef!

“The comprehensive upgrade of our product is a key part of celebrating Qantas’ 80th year of international operations. Singapore - being our first international destination - will be the very first market in Asia get our enhanced offering.”

10 — CHANGI INSIGHT Issue 21

This year, CAG kicked off its engagement of the India travel trade with a series of exciting activities in the metro cities of New Delhi and Mumbai. With participation in a combination of national-level tradeshow and targeted

travel agents seminars, CAG has set a positive tone for the year of India market development efforts ahead. StRONGESt SINGAPORE PRESENCE yEtAt SAttE 2015

As India’s leading travel tradeshow event, South Asia Travel and Tourism Exchange (SATTE), has a longstanding history and reputation. Into its 22nd edition this year (29-31 January 2015), this platform has once again enabled the global travel industry to reach out to the India market effectively. Gathering good responses from the Singapore travel trade’s previous years of participation, this year, National Association of Travel Agents Singapore (NATAS), supported by CAG and Singapore Tourism Board (STB), organised and coordinated Singapore’s participation in SATTE 2015. Joining CAG, NATAS and STB at the Singapore booth were 16 other trade partners including airlines, attractions, inbound travel and hotel operators – the strongest Singapore contingent at SATTE yet. Collectively, the comprehensive Singapore representation at the booth transformed into a one-stop shop travel information centre for our Indian counterparts, and vice versa, the Singapore partners were able to network and discuss business opportunities with more than 16,000 tradeshow attendees, a staggering 50% increase in visitorship over last year’s event. Based on the partners’ positive feedback and their firm belief in Singapore’s continued presence in SATTE, local Singapore partners can anticipate a bigger and even better participation in SATTE 2016!

BINtAN RESORtS INtERNAtIONAl RECONNECtS WIth INdIA

Bintan Island and its host of beautiful beaches, relaxing resorts, and world-class golfing ranges has always been the perfect twin tropical destination to Singapore. More is to come in the next couple of years as Bintan Resorts International (BRI) ramps up the offerings on the island with the development of Lagoi Bay. In anticipation of the island’s new burst of attractions and resorts, BRI shared this information with the India travel consultants through the organisation of a two-city roadshow event in Mumbai and New Delhi on 10 and 12 February respectively. To drive home the message of Singapore and Bintan Island as twin destinations, CAG participated in the roadshows and further affirmed the convenience of travelling to Bintan Island from Singapore (Changi Airport is only a 10 mins car ride from Tanah Merah Ferry Terminal, where Bintan-bound ferries depart). Both events were well-received by the trade, who were sincere in learning more about other BRI’s partners like Angsana Hotels and Resorts, Clubmed and Swiss-Belhotel too. Even though a majority of the travel consultants are already packaging Singapore and Bintan Island together, and have found more reasons to do so after attending the sessions. For the latest information on the Lagoi Bay developments, visit www.lagoibaybintan.com

VENtSE

Singapore booth at SATTE 2015

STRENgThENINg INdIA ANd SINgApoRE TIES

CHANGI INSIGHT Issue 21 — 11

VENtSE

On 26 February 2015, Changi Airport launched an outbound campaign promoting five Chinese secondary cities – Chengdu, Lanzhou, Guiyang, Changsha and Zhengzhou. This is the sixth year Changi Airport is collaborating with airlines and travel agents to promote travel to Chinese secondary cities. With Changi’s growing connectivity to Chinese secondary cities, the campaign targets to

raise awareness of selected Chinese cities through an extensive media campaign. Through a series of weekly destination features in local Chinese daily Lianhe Zaobao, as well as outdoor advertisements at Chinatown MRT station, the campaign introduces unique highlights and attractions of each Chinese city to Singaporeans. To complement the publicity efforts, airlines and travel agents also offer promotional packages to the featured destinations, and the public stand to win return tickets to the featured destinations by participating in a weekly contest. Details of the campaign can be found on www.changiairport.com/VisitChina

ChINESE SECoNdARy CITIESouTbouNd CAMpAIgN

CAG exhibited in the annual MATKA Nordic Travel Fair held in Helsinki, Finland from 15 to 18 January 2015. This is the 5th time

that CAG is taking part in this travel fair. With about 68,000 visitors attending the fair, MATKA remains the largest travel fair in Northern Europe. CAG was joined by partners, Singapore Tourism Board (STB) and inbound tour agent, Vacation Singapore at the Singapore booth at MATKA. Thanks

to the concerted efforts between CAG and its partners at MATKA over the years, mindshare about Singapore has grown over the years. Visitors to our booth were generally familiar with Singapore’s attractions such as Gardens by the Bay and Marina Bay Sands. Many visitors cited that they have visited Singapore before and were keen to revisit, as well as recommend friends to visit the city state. CAG also took the opportunity to participate in the PATA Long Haul Workshop in Helsinki. This is the second time that CAG has taken part in this event, engaging and networking with more than 40 long haul outbound tour operators during the event.

MATkA NoRdIC TRAVEL FAIR 2015

The Singapore booth at MATKA 2015CAG team at MATKA 2015

12 — CHANGI INSIGHT Issue 21

IR CARGOA

Reebonz addressing the audience Participants in Let's Talk Cargo 1-to-1 meeting

CAG organised its 6th Let’s Talk Cargo! conference cum networking event on 10 February 2015. More than 150 participants including fly-in guests from the air cargo and logistics industry gathered at the annual forum to

exchange insights on the air cargo industry. Specifically catered for the Southeast Asia’s air cargo industry, the 2015 edition of Let’s Talk Cargo! included insights by Seabury Group as well as supply chain requirements by regional e-commerce and pharmaceutical companies such as Reebonz, Zalora and Merck Sharp & Dohme. A new interactive polling segment was introduced this year to invite participants to

express their opinion on various aspects of the air cargo industry such as their outlook and priorities for 2015. CAG also continued with the 1-to-1 meeting session, which is a platform for airlines and logistics service providers to discuss potential partnerships at Changi Airport, and for industry players to establish contacts, forge new partnerships and explore growth opportunities. A total of 52 1-to-1 meetings were held, up from 33 meetings seen in last year’s event.

FoRgINg pARTNERShIpS ANd gAININg INSIghTS oN SouThEAST ASIA’S AIR CARgo LANdSCApEAT LET’S TALK CARGO! 2015

With Valentine’s Day occurring in February every year, the demand for flowers, especially roses, are in high demand.

Setting February 2015 apart from previous years is the handling of 10,000 stalks of Colombian Roses in Changi Airport - The largest single delivery of Colombian roses in Singapore. Leveraging on Changi Airport’s 3 weekly services to Latin America, these roses were flown in by air and handled by SATS Coolport, one of the two dedicated perishables handling facilities in Changi Airport. Celebrating Valentine’s Day, about 4,000 of the Colombian roses were purchased by Changi Airport Group and displayed at Changi Airport Terminal 2.

ChANgI AIRpoRT hANdLES 10,000 CoLoMbIAN RoSES DURING VALENTINE’S DAY

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On 5 March 2015, DHL Express unveiled the blueprint of DHL Express South Asia Hub, a 24-hour express hub facility located within

Changi Airfreight Center (CAC) at Singapore Changi Airport. The new facility boasts a total investment of S$140 million (€85 million), the largest infrastructural amount invested by DHL Express in Singapore, to better support regional businesses operating in and out of Singapore. DHL Express has been working with Changi Airport Group (CAG) on its expansion plans since 2013, and will move its South Asia Hub to a bigger premise at CAC, a 24-hour Free Trade Zone managed by CAG. Occupying a land area of 26,200 square meters and a total floor area of 23,600 square meters, DHL Express South Asia Hub features the first fully automated express parcel sorting and processing system in Singapore and South Asia. Upon completion, the facility will be able to handle a cargo throughput of more than 628 tonnes per day when at full capacity and process shipments at the speed of 14,000 shipments per hour. In comparison, the manual processing system in the current facility handles up to 225 tonnes per day at a speed of 2,400 shipments per hour.

Speaking at the unveiling event, Mr Jerry Hsu, CEO, DHL Express Asia Pacific, said: “The DHL Express South Asia Hub reinforces our global multi-hub strategy by leveraging the unmatched regional connectivity provided by Changi Airport and Singapore.” With over 4,000 weekly flights linking Changi Airport to 100 cities in the regions that DHL SAH will serve, the strong connectivity strengthens DHL Express’ ability to better serve the region. The projected increase in volumes will in turn provide growth opportunities for airlines operating at Changi Airport in the years ahead. Mr Yam Kum Weng, Executive Vice President, Air Hub & Development, Changi Airport Group, said: “CAG is delighted that DHL Express has chosen Singapore as its preferred location for its South Asia Hub which further anchors Changi Airport’s position as a key cargo and logistics hub in Asia. The new facility, which has improved capabilities and three times more capacity than that of DHL’s existing facility, allows air express parcels to be shipped or transshipped within an hour. CAG will build on our collaborative partnership with DHL Express to see to the successful completion of DHL Express’ South Asia Hub.” Leveraging the island-nation’s strategic location, DHL’s current facility is responsible for consolidating and distributing shipments to these regions. It is also a vital springboard to other continents as shipments from Singapore can reach Germany via flights through India while those going to Oceania can connect through Australia. Once the expanded South Asia Hub is completed, DHL will be able to support up to five times more flights in Singapore, further capitalizing on the country’s prime position. Construction of DHL South Asia Hub is expected to be completed by the first quarter of 2016.

dhL ExpRESS INVESTS S$140 MILLIoN IN SouTh ASIA hubAT SINGAPORE CHANGI AIRPORT

IR CARGOA

Artist's impression of DHL Express South Asia hub

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CRowNE pLAZA ChANgI AIRpoRTIS woRLd'S bEST AIRpoRT hoTEL

Crowne Plaza Changi Airport has been named the World's Best Airport Hotel and also the Best Airport Hotel in Asia by London-based Skytrax, a global source of airline ratings and reviews.The double accolades were announced at the 2015 Skytrax World Airport Awards last week in Paris.This is the first time that Crowne Plaza Changi Airport Hotel has won the World’s Best Airport

Hotel award, though it has been in the top 10 for the past three years. Connected to Changi Airport Terminal 3 by a fully covered link-bridge, the 320-room Crowne Plaza Changi Airport hotel features a 24-hour fitness centre, a spa and an outdoor pool. The hotel, which opened in 2008, will increase its room count by 243 rooms with the opening of a new wing next year.

CAG DEEPENS PARTNERSHIP WITHkuNMINg ChANgShuI INTERNATIoNAL AIRpoRTAT ROUTES ASIA

Changi Airport Group (CAG) signed a Memorandum of Collaboration with Kunming Changshui International Airport at the Routes Asia Conference on 15 March 2015. Under

the collaboration framework, both airports seek to deepen the partnership through network and frequency expansions between Singapore and Kunming. Changi Airport and Kunming Airport will also work with airline partners to explore opportunities to establish links to Northeastern and Northwestern China via Kunming, as well as connect Chinese cities to Southeast Asia and Southwest Pacific via Singapore. The signing ceremony was witnessed by Mr. Ding Shaoxiang, Vice Governor of the Yunnan Provincial People's Government and Mr. Tang Xuefan, Chief Executive Officer of the Yunnan Airport Group. Signing ceremony between Kunming Changshui airport and CAG

CHANGI WINS AGAIN ATRouTES ASIA CoNFERENCE 2015

Changi Airport was named the winner of the Best Airport Marketing Award (Over 20 Million Passengers Category) at the Routes

Asia Conference held in Kunming, China on 14-17 March 2015. The annual Routes Marketing Awards are regarded as one of the most prestigious awards in the industry and they are voted for and judged by the airline network planning community. They provide a platform for the provide the airline community with the platform to recognise airports and tourism authorities that they feel provide the best overall marketing services to them. Changi Airport was once again honoured the top accolade for its strong support for airlines as well as innovative techniques to establish new routes and sustain existing services. CAG would like to thank our valued airline partners for their strong support and we look forward to more years of close collaboration ahead!CAG team with the Best Airport Marketing Award (Over 20 Million Passengers Category) award

at Routes Asia

CHANGI INSIGHT Issue 21 — 15

CAG played hosts to two large groups of airlines at the start of 2015. In January, the International Air Transport Association (IATA)

hosted 15 mid to senior level airline representatives under its Airports Working Group in Singapore. IATA engages the working group to discuss strategy and positions for IATA to engage airports globally on costs, regulation and infrastructure. At the request of IATA, CAG gave a presentation on Changi Airport's new developments to our guests, followed by a tour of the airport facilities and premises.

Oneworld held a workshop for its Customer Service Delivery team at the start of February in Singapore Changi Airport. Boosting senior customer experience representatives from 14 different airlines, the group was keen to learn more from Changi Airport about the upcoming new Terminal 4, which is slated to be built with design and process innovations to redefine passengers’ travel experience, raise operational efficiency and manpower productivity for airlines and airport agencies. In addition, CAG also gave an overview of the adoption of technology at Changi Airport. Through these events, various CAG stakeholders had the opportunities to engage airline partners that are both online and offline at Changi Airport and valuable contacts were exchanged in the process.

Singapore Changi Airport has been voted the World's Best Airport by air travellers for the third year in a row at the 2015 World Airport Awards,

held at the Passenger Terminal EXPO in Paris, France. This is the 6th time that Changi Airport has picked up this top title at the World Airport Awards. Changi Airport celebrated further success at the Awards, receiving the award as Best Airport for Leisure Amenities. This is the 7th time that Changi Airpoort has picked up this accolade. These leisure amenities include the music bar lounges, cinemas, music deck, swimming pool, napping and rest areas and the in-terminal Transit Hotel. The accolade is the outcome of the dedication and passion of every single member of the Changi Airport Community. CAG would like to thank all partners for the continued strong support!

CHANGI AIRPORT GROUP HOSTSIATA AIRpoRTS woRkINg gRoup ANd oNEwoRLd CuSToMER SERVICE dELIVERy EVENTS

ChANgI AIRpoRT bAgS SkyTRAx'S woRLd'S bEST AIRpoRT FOR THIRD YEAR RUNNING

Oneworld audience comprising of representatives from 14 airlinesMr. Lim Ching Kiat, SVP Marketing Development CAG addressing the audience

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