Singapore Changi Airport Air Hub News

Transcription

1 Singapore Changi Airport Air Hub News CHANGI AIRPORT RECORDS ALL TIME HIGH OF 58.7 MILLION PASSENGER MOVEMENTS IN 2016 SINGAPORE S TOURISM NUMBERS HIT HISTORIC HIGH OF 16.4 MILLION IN 2016 SINGAPORE IS RANKED AMONGST THE WORLD'S TOP OUTBOUND TOURISM MARKET ISSUE 29 April -June 2017

2 PAGE 02 SINGAPOREFOCUS 04 SINGAPORE FOCUS Boost to Singapore s Cruise Sector as Dream Cruises Announces Year-Round Sailings from Singapore 06 COVER FEATURE Year-In-Review 08 CHANGI STATISTICS Passenger and Airfreight Data 10 NETWORK GROWTH New Services and Frequency Changes Ethiopian Airlines to Start Direct Services to Singapore Increased Services to Cebu, Phillipines 11 FIRST PERSON General Manager South East Asia and Oceania, Air France KLM 12 AIR CARGO Let s Talk Cargo! Conference, 8th Edition 13 EVENTS Changi Airport Group and Henan Province Airport Group Forge Even Closer Ties 14 CHANGI NEWS SINGAPORE HOSTS The ASEAN Tourism Forum (ATF) 2017 took place from 16 to 20 January 2017 under the theme Shaping Our Tourism Journey Together. It was also the first event hosted by Singapore during ASEAN s 50th anniversary year. Into its 36th year, the ATF is a cooperative regional effort to promote the ASEAN region as one tourist destination and this year s theme speaks to the importance of continual, collective efforts by ASEAN members to jointly develop and grow the region s tourism industry. At the forum, Singapore s Prime Minister Mr Lee Hsien Loong, ASEAN s Secretary General Mr Le Luong Minh and ASEAN tourism ministers, launched a year-long Visit Asean@50 campaign to encourage more visitors to visit the region, spend more, and stay longer. Specifically, the campaign aims to grow international tourism arrivals to the region by 10% to 121 million, spending to US$83 billion (S$118 billion) and the average length of stay to six to seven days by the end of the year. Gracing the campaign launch, Prime Minister Lee Hsien Loong suggested three ways to go beyond a marketing campaign to drive tourism growth in the region: Strengthen air links within ASEAN member countries, promote cruises within the region and develop talent in the industry. The strengthening of air links in particular, has been one of the most important drivers of tourism growth in ASEAN over the last ten years, where there had been a doubling of annual air seat capacity of the flights to and within ASEAN. This in turn contributed to the robust tourism landscape that ASEAN enjoys today. Lim Ching Kiat, Managing Director, Air Hub Development Donald Tan, Vice President, Airline Development Damon Wong, General Manager, Airline Development Peh Ke-Wei, Vice President, Passenger Development Jaisey Yip, Associate General Manager, Cargo & Logistics Development Kwah Yi Kai, Senior Associate, Airline Development Changi Insight is published quarterly. Design by Meta Fusion Pte Ltd. MCI (P) 108/03/2016 Liew Zhong Yao, Senior Manager, Air Hub Strategy Samantha Yuan, Senior Manager, Airline Development Tan Shu Yee, Senior Manager, Airline Development Pang Yee Huat, Manager, Airline Development Louisa Soon, Manager, Passenger Development Lim Shyan Jun, Assistant Manager, Cargo & Logistics Development Jen Tey, Senior Associate, Air Hub Strategy Tan Chun Wui, Senior Associate, Airline Development Eileen Thian, Associate, Cargo & Logistics Development For enquiries on aviation business opportunities with Changi Airport, please contact Changi.Marketing@changiairport.com

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5 PAGE 03 SINGAPOREFOCUS SINGAPORE AMONGST SOME OF THE LARGEST OUTBOUND TOURISM MARKETS WORLD-WIDE In 2016, Singapore was ranked 6 th most visited city in the world by Mastercard s Global Destination Cities Index. Indeed this accolade was rightly bestowed upon the city state known globally for, among other things, its melting pot of cultures, futuristic attractions, beautifully manicured vegetation, e.t.c. Yet not many might realise that just as the country receives large crowds of inbound tourists, Singapore itself is a similarly large source of outbound travellers. In 2015, Singaporeans made more than 19 million trips abroad 1, placing it 15 th amongst the world s top outbound tourism source countries 2. When narrowing the scope to top outbound source cities, Singapore leaps to 4 th spot, coming in just after Hong Kong, Mexico City and London 3. These numbers might not seem much against the global giants of China or the United States but they do stand out for a city state housing a population just above 5.6 million residents in Excluding cross-border overland trips into Malaysia, these numbers translate to an estimated average of 6.2 trips per Singapore household in ; the highest number of trips per household amongst countries in the Asia Pacific region. According to forecasts by Mastercard, this figure is set to climb close to 7 trips per household by The relative affluence of the average Singaporean plays a large part in the high outbound travel rate for Singaporeans. In 2016, Singapore placed 5 th amongst countries with the world s highest GDP per capita 6. Wealth is also fairly distributed amongst the population as well. In 2016, lower income households, which made up 46% of all Singaporean households, were responsible for 34% of all outbound trips; middle income households, which made up 34% of all households, took 39% of all trips; high income households, which made up 21% of all households, took 27% of all trips. The resultant distribution places Singapore amongst the most evenly distributed outbound markets, if not the most 5. Equally interesting are the destinations Singaporeans are travelling to. While globally popular destinations such as Japan and Thailand are high on Singaporeans list of favourite destinations, Singaporean travellers are also seeking increasingly exotic destinations such as Finland, Myanmar and the Maldives. 1 The figures include Singapore-Malaysia cross border movements 2 UNWTO, Country-specific: Outbound tourism 3 IPK International on behalf of ITB Berlin, ITB World Travel Trends Report 2015/ National Population and Talent Division, Population in Brief Mastercard, Mastercard Future of Outbound Travel in Asia Pacific (2016 to 2021) 6 CIA, The World Factbook

6 PAGE 04 SINGAPOREFOCUS BOOST TO SINGAPORE S CRUISE SECTOR AS DREAM CRUISES ANNOUNCES YEAR-ROUND SAILINGS FROM SINGAPORE On 20 January 2017, Dream Cruises announced the deployment of its Genting Dream ship to Singapore for year-round sailings. The 3,300-passenger-capacity Genting Dream will initially offer a range of two- to five-night cruises from Singapore to destinations in the Straits of Malacca and the Java Sea. This will be further expanded later to also include new destinations in the South China Sea. Sailings from Singapore will begin from 3 December Described as a floating luxurious integrated resort designed for the Asian market, guests of Genting Dream will be able to enjoy facilities such as the Crystal Life health and wellness (which offers the largest Asian reflexology spa at sea), a six-slide waterpark, ropes course with far-out zip line for families and group team building, the world s first Johnnie Walker House and Penfolds flagship Wine Vault at sea, as well as celebrity chef Mark Best s restaurant on board. A dedicated personal shopper service is also available, at duty free shops spanning 1,100 square meters. In addition, Genting Dream will also feature Zouk, the iconic Singapore night club brand, enabling guests to experience the high energy entertainment and night club scene even while out at sea. BOOST TO SINGAPORE S CRUISE SECTOR Dream Cruise s deployment in Singapore is significant as it represents the first time that Singapore will be hosting a large scale ship year-round. Mr Lionel Yeo, Chief Executive, Singapore Tourism Board (STB) said, We warmly welcome the year-round homeporting of the Genting Dream in Singapore. This historic deployment underscores the potential of Southeast Asia as one of the world s prime cruising destinations. As the ASEAN lead coordinator for cruise development, Singapore will continue working closely with our neighbours to grow the cruise industry in this region. Dream Cruises boost to Singapore s cruise sector comes on the back of another cruise brand s additional ship deployment to Singapore. Last year, Royal Caribbean International (RCI) announced the deployment of its three ships, Ovation of the Seas, Mariner of the Seas and Voyager of the Seas, to Singapore from October 2016 to May This represents RCI s longest-ever home-porting season here. The three ships will operate a total of 55 cruises over the eight month period, bringing an estimated 200,000 guests to ports in Southeast Asia. This deployment will also increase RCI s capacity to the region by 30% in In 2015, Singapore registered one million cruise passengers. This represented a 14% growth from 2014, which far outpaced Singapore s Visitor Arrivals (VA) growth in STB is expecting a 5 to 8% Compound Annual Growth Rate (CAGR) in passenger cruise traffic for the next three to four years.

7 PAGE 05 SINGAPOREFOCUS SINGAPORE S TOURISM NUMBERS HIT HISTORIC HIGH OF 16.4 MILLION IN 2016 Visitor arrivals and tourism receipts to Singapore hit record highs in 2016, with arrivals growing 7.7% to 16.4 million and receipts expanding 13.9% to S$24.8 billion. Last year s figures were achieved in spite of the economic malaise and a Zika outbreak in Singapore last August. It also came on the back of a poor showing in 2015, when tourism spend fell for the first time in six years. Indonesia remained the top source of visitors to Singapore for 2016, edging out China after the Chinese took the top spot for arrivals from January to November. In addition, the top three growth market sectors were China, which grew by 36% from 2015; India, at 8%; as well as Indonesia, at 6%. The preliminary figures released by Singapore Tourism Board (STB) also revealed that visitors spent 48% more on shopping between January and September 2016 compared to the same period in For the second year running, tourists from China were the top spenders in Singapore, notching up S$2.8 billion in tourist receipts, with the bulk of the spending going into shopping. STB said that tourist receipts from China increased because of a larger volume of tourists, a result of the agency s promotion efforts in Tier 1 Chinese cities such as Beijing and Shanghai, and Tier 2 cities such as Nanjing, Xiamen and Shenyang. STB said one marketing campaign it launched was done with Chinese digital travel companies Tuniu and Ctrip, which helped promote longer trips to just Singapore. As a result of the partnership, 99,200 Singapore-only packages were sold by Tuniu, a 52% increase from STB has also been promoting Singapore as a destination for business and cruise tourism, reaping double-digit year-onyear growth in the two sectors. More than 410 business events were held in 2016, which brought in some S$611 million in tourism receipts, up 28% from Meanwhile, the cruise passenger throughput grew 16% to about 1.2 million and India was ranked as the number one cruise arrival market with 100,000 passengers. For this year, the agency is forecasting tourist receipts to grow in the range of 1 to 4%, or S$25.1 billion to S$25.8 billion. As for visitor arrivals, it is targeting a growth of 0 to 2%, or a total of 16.4 million to 16.7 million.

8 PAGE 06 COVERFEATURE Singapore Changi Airport recorded a strong performance in 2016, reaching all-time highs of 58.7 million passenger movements (+5.9%) and 360,490 aircraft movements (+4.1%) for the year. Airfreight throughput increased by 6.3% to also reach a new high of 1.97 million tonnes. In 2016, routes in South East Asia, North East Asia and Oceania contributed 90% of the growth in passenger traffic. China moved from fifth to become Changi Airport s third largest country market for the year, with robust traffic growth of 15%, in line with very strong visitor arrivals from China to Singapore. A healthy increase in visitor numbers also contributed to passenger traffic growth for Thailand (+6%) and Vietnam (+8%). There was little change in Changi Airport s busiest routes for the year, with Jakarta remaining at the top. Kuala Lumpur moved up one notch to second, swapping places with Bangkok. Among Changi Airport s top 20 city links, Guangzhou was the fastest growing (+ 21%), with Melbourne, Penang and Seoul also achieving double-digit growth. Changi Airport welcomed two passenger airlines (West Air and Fiji Airways), and two freighter carriers (Neptune Air and Silkway West Airlines) to its family of over 100 airlines. United Airlines and Singapore Airlines commenced non-stop flights to San Francisco, while freighter airline K-Mile Air resumed operations to Changi Airport. Eight new city links were established during the year to India (Amritsar and Jaipur), China (Urumqi), Australia

9 PAGE 07 COVERFEATURE (Canberra), New Zealand (Wellington), Fiji (Nadi), Japan (Sapporo) and Germany (Dusseldorf). In terms of airfreight throughput, growth was recorded across imports, exports and transshipments. The top five country markets for airfreight were China, Australia, Hong Kong, the United States and India. Perishables and pharmaceuticals were segments that performed well, contributing a significant portion of Changi s total cargo throughput. To strengthen its pharmaceutical cargo handling capabilities, Changi Airport formed a community of cargo partners to undergo the attainment of International Air Transport Association s (IATA) Center of Excellence for Independent Validators on Pharmaceutical Handling (CEIV Pharma) certification. Under a community approach, at least one company from each of the supply chain nodes (airlines, ground handlers, freight forwarders) will undergo the CEIV Pharma certification. The pioneer group of companies consists of Singapore Airlines Cargo, dnata Singapore, Global Airfreight International, Expeditors Singapore, CEVA Logistics Singapore, and Schenker Singapore. SATS Coolport was the first facility in the world to be certified in Beyond the establishment of a CEIV Phama certified community, Changi Airport Group also joined Pharma.Aero, an organisation focused on achieving reliable end-to-end air transportation for pharmaceutical cargo. Changi Airport was awarded 26 Best Airport awards in 2016, bringing the total to 533 to date. Accolades included Skytrax s World s Best Airport Award 2016, for the fourth time in a row, and Business Traveller s Best Airport in the World award for the 29 th consecutive year. Changi Airport Group CEO Mr Lee Seow Hiang, said, Despite a backdrop of economic and socio-political uncertainties, we maintain a positive outlook for the year ahead. We see opportunities in emerging markets within Africa and Eastern Europe. At the same time, we will continue to grow our long haul routes to Western Europe, and strengthen our connectivity within the region to secondary cities in South East Asia, China and India. We have observed emerging trends such as growth in the self-transfer and fly-cruise segments, and will continue to work with our partners to develop innovative solutions to better serve passengers. Similarly, manageable fuel costs and improvement in aircraft technology bode well for Changi Airport s drive to work with airlines to expand our network of city links."

10 PAGE 08 CHANGISTATISTICS (Rolling 12 months from Feb 2016-Jan 2017) South East Asia 26.1% North East Asia 10.4% Southwest Pacific 8.9% South Asia and Africa 6.9% Europe 2.8% West Asia 0.9% Americas (by Passenger Movements) Africa America South East Asia Feb 2016-Jan , ,235 25,961,987 Feb 2015-Jan , ,212 24,303, % % + 6.8% (As of 1 Jan 2017) Sweden Canada USA Norway Finland Denmark United Kingdom Lithuania Poland Netherlands Germany Belgium Czech Republic Luxembourg Austria Kazakhstan Switzerland Hungary France Italy Ukraine Turkey Azerbaijan Spain China Russia South Korea Japan Nigeria Egypt Saudi Arabia Oman Ethiopia Kenya Nepal Bhutan Qatar Bangladesh United Arab Myanmar Emirates Laos India Thailand Maldives Macau Cambodia Malaysia Sri Lanka Singapore Vietnam Hong Kong Taiwan Brunei Philippines Brazil Indonesia Timor-Leste Papua New Guinea Madagascar South Africa Mauritius Australia Fiji 121 Scheduled Airlines 382 City Links 89 Country Links 7,138 Weekly Flights 288 Weekly Freighter Flights 55 Weekly Freighter Links Note: New Zealand **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.

11 PAGE 09 CHANGISTATISTICS (Rolling 12 months from Feb 2016-Jan 2017) (by Passenger Movements) Jakarta 4,132, / Kuala Lumpur 3. Bangkok 4,068,425 3,961, / Hong Kong 3,605, / 2015 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 5. Manila 17,883,236 (Short-haul defined by flight time of less than 4 hours) 2,115,222 of total pax movements (Rolling 12 months from Feb 2016-Jan 2017) / / / 2015 TOP 5 MEDIUM-HAUL CITIES (by Passenger Movements) 1. Tokyo 2. Taipei 3. Sydney 4. Melbourne 5. Shanghai 2,041,658 1,606,260 1,562,679 1,438,530 1,400, FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 8,049,660 (Medium-haul defined by flight time of 4 8 hours) of total pax movements (Rolling 12 months from Feb 2016-Jan 2017) 2,000 (by Passenger Movements) 1, / London 2. Frankfurt 1,229, ,977 1,900 1, / / Paris 4. Auckland 5. Zurich 391, , ,488 1,800 1,750 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 3,054,311 (Long-haul defined by flight time of more than 8 hours) of total pax movements (Rolling 12 months from Feb 2016-Jan 2017)

12 PAGE 10 NETWORKGROWTH NEW SERVICES AND FREQUENCY CHANGES Airline City Increase in Weekly Svs Resultant Weekly Svs Effective Date Singapore Airlines Ahmedabad Mar-17 Singapore Airlines Bangkok Mar-17 Singapore Airlines Ho Chi Minh City Mar-17 Singapore Airlines Moscow May-17 Singapore Airlines Stockholm May-17 Singapore Airlines Sydney Jun Jun-17 to 30-Nov-17 only Singapore Airlines Rome Jul-17 Singapore Airlines Melbourne Jul-17 Singapore Airlines Dhaka Jul-17 Singapore Airlines Brisbane Aug-17 Ethiopian Airlines Addis Ababa Jun-17 Scoot Athens Jun-17 IndiGo Chennai Mar-17 VietJet Hanoi Apr-17 Myanmar National Airlines Yangon Mar-17 US-Bangla Airlines Dhaka Mar-17 SilkAir Phuket Mar-17 SilkAir Colombo Apr-17 Tigerair Jaipur Mar-17 ETHIOPIAN AIRLINES TO START DIRECT SERVICES TO SINGAPORE Ethiopian Airlines, Africa s largest airline, will commence five weekly Singapore-Addis Ababa-Kuala Lumpur flights from 1 June The route will be operated by a 270-seat Boeing aircraft. Ethiopian Airlines CEO, Mr. Tewolde GebreMariam said, In our continuous effort of connecting the continent of Africa with its major trading partners around the world through direct services and with the youngest fleet of modern airplanes, we are glad that we are able to offer a direct and non-stop services to the Lion City, Singapore, a global aviation centre and a preferred gateway to Asia and Australia. Our direct and non-stop flights will serve the growing traffic between Africa and Singapore, giving the best possible connectivity options to passengers travelling between most points in Asia and Africa, in partnership with fellow Star member, Singapore Airlines. Addis Ababa will be Changi s fourth city link to the African continent after Cape Town, Johannesburg, and Mauritius. INCREASED SERVICES TO CEBU, PHILLIPINES Changi s connectivity with the Philippine island of Cebu increased from 25 weekly to 33 weekly in late-2016, with the entry of two new airlines on the Singapore-Cebu route. AirAsia Philippines commenced 4x weekly services on 25 November 2016, while Philippine Airlines also commenced 4x weekly services on 17 December Cebu is Changi s second largest market in the Philippines where traffic grew by 7% in Best- known for its diving spots, the Philippine government has been actively promoting Cebu and the region as a premier destination in the Philippines. The increase in Singapore-Cebu capacity should therefore stimulate more tourism and business flows between the two cities.

13 PAGE 11 FIRSTPERSON GENERAL MANAGER SOUTH EAST ASIA AND OCEANIA, AIR FRANCE KLM An exclusive interview with Mr Gijs van Popta, General Manager South East Asia And Oceania, Air France KLM Q : KLM and Air France commenced operations to Singapore in 1933 and 1964 respectively. As long standing partners of Changi Airport, what are some of the key milestones in Singapore that both airlines have achieved till date? Both Air France and KLM have a rich history in Singapore, long before we merged in KLM started flights to Singapore as far back as 1924 when we started our first intercontinental flights from Amsterdam to Jakarta. Singapore was a regular stop on that route. In May 1933, KLM was the first airline with a scheduled service to Singapore - three times a week, 5½ days of flying with numerous stops along the way. KLM was also the first airline to land at Kallang Airport, Singapore s first commercial air field which officially opened in June A KLM DC3 was on the way from Indonesia to Seletar Airport when bad weather made landing at Seletar impossible. Instead, the crew was requested to land at the new Kallang Airport. So that was another first! Air France introduced services to Singapore from October 1964 and was the first airline to operate the commercial DC10 to Singapore in More recently, in 2015, we debuted our newly refurbished cabins on the Singapore-Paris route, including the new La Premiere (first class) suites. Q : Air France-KLM recently established your new regional office in Singapore. How will this development help to better manage your business activities in the region? We consolidated our three main businesses: passenger, cargo, and aeronautical maintenance under one roof. Through our office in Singapore, we are able to efficiently serve our customers in the South East Asia and Oceania market, including Cargo operations in Asia Pacific and Middle East. This will reinforce our competitiveness and bring about better operational experience, enhancing the customer experience. We want to be the airline group that customers prefer to do business with, excels in customer intimacy, provides seamless information at all touchpoints and thereby offer competitive fares with a network that is easy to connect to. Singapore being an attractive business hub has the right environment to spur commercial growth, thanks to it being a well-connected travel hub and having one of the best infrastructures around the world. Additionally, Singapore is a great place to find good talent, and as such we have been able to build up a very professional and energetic team, who I really enjoy working with, and who are all contributing to our activities in the diverse South East Asia and Oceania region Q : With the growing traffic between Europe and Asia Pacific, how does the Air France-KLM see Changi Airport as a strategic partner in your growth in this region? Changi Airport is a key partner to the Air France KLM group and close collaboration with Changi is very important. Air France and KLM, along with our SkyTeam partners, currently offer one of the largest networks with departures from Asia. We are always exploring new opportunities, especially on enhancing the Singapore hub functionality, to offer an even wider range of flight connections. Singapore was the first Air France destination to welcome the Air France B fully equipped with our four new cabins. Similarly, KLM also offers the fully refurbished cabins including the brand new World Business Class product on our daily Singapore route. This underlines the importance of Singapore and the region in our worldwide network where we intend to offer the best products to all of our customers. Q : What are some of the upcoming developments in Air France-KLM that passengers can look forward to? The Air France KLM group is continuing its commitment to customers by making further investments in new products and services. For example, we offer an exceptional First Class designer suite, La Première for the Singapore market. The four suites are tasteful and luxurious, with gourmet dishes designed by French Michelin-starred chefs. This really offers a deluxe flying experience with a French touch. Our network is also growing. In 2016, we added from our hubs in Paris-Charles de Gaulle and Amsterdam Schiphol Airport over 22 new destinations, counting among them Dublin, Miami, Teheran, Colombo, and Windhoek. In 2017, we will be introducing 27 new destinations including Marrakech, Porto, Catania, Gdansk, and Graz. Q : As an airline veteran with a decade of experience, what is the greatest satisfaction that you derive from your job? The greatest satisfaction is when you achieved challenging goals knowing that we had to go that extra mile together. That s what inspires me - collectively, we contribute positively and succeed in one of the most competitive and complex industries in the world. In January, KLM was announced as the safest and most punctual airline. This recognition makes me proud as it is shows that all our combined efforts to offer customers a safe and pleasant travel experience are paying off.

14 PAGE 12 AIRCARGO 8 TH EDITION CAG organised the annual Let s Talk Cargo! conference on 16 February The conference, now in its eighth edition, attracted more than 150 air cargo and logistics stakeholders including airlines, ground handlers, freight forwarders and shippers. Let s Talk Cargo! 2017 also featured an exciting line-up of local and overseas speakers, including representatives from the Economic Development Board of Singapore, Seabury Group, Zuellig Pharma, ST Aerospace and Lazada to share the latest air cargo trends and developments, as well as how airfreight is integral to their businesses. One of the key themes arising from the conference was that airfreight demand would remain positive in the short term, while in the longer term, the air cargo industry should focus on fast-growing cargo segments and adapt to the shift of production bases in order to outperform. Seabury shared that overall tonnage growth for air cargo globally was 2.6% in 2016, with Asia-Europe registering an outstanding growth. Despite the healthy growth in cargo throughput, the air cargo industry also saw falling yields and load factors, attributed to oversupply of capacity. Looking forward, China s exports are expected to accelerate in the first half of USA s exports are expected to recover marginally while Europe s exports are expected to stabilize. In the longer term, Seabury forecasted that there would be continued pressure in the air cargo industry, and that the air cargo industry should focus on fast-growing cargo segments such as e-commerce and adapt to the shift of production bases in order to outperform. Turning to e-commerce, Mr. Stephen Leung from Lazada opined that due to the lack of retail alternatives in Southeast Asia Tier 3 and Tier 4 cities, and coupled with the rapid urbanization of these cities, the e-commerce opportunities in the region are ample. With respect to the Aerospace cargo sector, Mr. Tan Heng Seng from ST Aerospace shared about the changing needs for the aerospace supply chain strategy. The global leading MRO player is shifting its supply chain model from a decentralized to a centralized one. They would also be outsourcing parts of their supply chain. (Airlines are generally more positive on the outlook of 2017, as compared to freight forwarders.) 25% 38% 39% 22% 13% 100% 88% 75% Pure Pax Carrier (Pharmaceuticals and E-commerce are key target segments for 2017) 6% 54% 8% 6% Pure Freighter Carrier 29% 33% 22% Combi. Carrier 11% 44% 17% 17% Freight Forwarder 6% Integrators 22% Much better than 2016 (>5%) Marginally btter than 2016 (+0.6% to 5%) No change compared to 2016 (-0.5% to 0.5%) Marginally worse than 2016 (-0.06% to -5%) Much worse than 2016 (>-5%) Total: 99 entries 9% 32% Aerospace E-Commerce Electronics Perishables Pharmaceuticals None Others

15 PAGE 13 EVENTS CHANGI AIRPORT GROUP AND HENAN PROVINCE AIRPORT GROUP FORGE EVEN CLOSER TIES Henan Province, with a population of over 90 million, is one of the most populous provinces in China. It is also home to four of the eight Great Ancient Capitals of China, namely Luoyang, Anyang, Kaifeng and Zhengzhou (which is also the presentday provincial capital). As such, Henan Province is renowned for its rich historical and cultural attractions such as the Longmen Grottoes and Shaolin Temple. In Nov 2010, Changi Airport Group and the Henan Provincial Government Civil Aviation Department signed a Memorandum of Understanding, signifying both parties interest to collaborate in the development of passenger traffic and tourism between Changi Airport and Zhengzhou Airport. Following the signing of the MOU, Xiamen Airlines launched daily Zhengzhou-Xiamen-Singapore service in March Both airports and Xiamen Airlines also conducted joint marketing campaigns to promote the air link as well as leisure travel between Singapore and Henan Province. More recently, Tigerair launched thrice weekly non-stop Singapore-Zhengzhou services in June 2016, increasing services frequencies to 10x weekly. Changi Airport Group and Henan Province Airport Group forge even closer ties Apart from developing passenger services, CAG and Henan Province Airport Group also saw potential to jointly grow air cargo traffic. In recent years, Zhengzhou Airport had been actively promoting itself as a logistics hub in China. Its key advantages include a large manufacturing base such as Foxconn, Lenovo, Microsoft, BMW, Daimler providing stable demand for air cargo uplift; as well as its geographical advantage of being situated mid-way between Shanghai and Beijing (2 major air cargo hubs); and its accessibility to rest of China by rail network and highways which in turn facilitates intermodal cargo traffic. Singapore, on the other hand, is a key cargo node in the Southeast Asia and Southwest Pacific, with extensive connectivity of over 2,800 weekly passenger and freighter services to about 60 cities. Building on the past years close partnership, CAG and Henan Province Airport Group signed a new three year MOU on 15 December 2016 to renew both parties commitment to collaborate on developing both passenger and cargo traffic between Singapore and Zhengzhou. Areas of partnership would include further increasing frequencies of passenger and freighter services, conducting joint marketing activities, pursuing cross-border e-commerce opportunities and developing multi-modal transport links. The MOU was signed by Mr Wong Woon Liong, Senior Advisor of Changi Airport Group and Mr Yang Xianbo, Chairman of Henan Province Airport Group.

16 PAGE 14 CHANGINEWS In 2016, Changi Airport Group conducted a survey to gain a deeper understanding of the Chinese tourists travel behaviours, preference and their perceptions of Singapore. The survey targeted 1,600 Chinese respondents in sixteen cities, across six regions. For a good representation of the market, the survey covered a wide geographical spread and a balanced distribution of the life stages; the singles, married without children and married with children. There was also a good representation of the Chinese travellers who have recently visited Singapore in the past two years. The survey also provides a good comparison of the attractiveness of Singapore vis-à-vis other destinations, in various aspects. The insights presented in the form of infographics (overleaf) are not exhaustive. There are several common trends which pointed to the growing sophistication of the Chinese tourists. Compared to several years ago, Chinese travellers are now less price-sensitive, more quality-focused and online-savvy when it comes to travel research, planning and booking. These developments imply that the travel industry has to similarly evolve to keep up with the latest trends. Married with Children Shenyang Changchun Married without Children Beijing Tianjin Tier 1 Cities Tier 2 Cities Chengdu Xi an Chongqing Nanjing Wuxi Wuhan Hangzhou Changsha Shanghai Guangzhou Xiamen Shenzhen Single East 25% West & Southwest South 19% 19% Central North 13% 12% OF RESPONDENTS VISITED SINGAPORE IN THE PAST TWO YEARS Northeast 12%

17 PAGE 15 CHANGINEWS Triggers for Last Overseas Leisure Travel Most Used Channels for Travel Research Relaxation 45% Online travel agents (e.g. Ctrip, Tuniu) 55% Right season to visit the intended destination 26% Family, friends, colleagues 53% Family & friends recommendation 24% Traditional travel agencies 44% Cheap tour packages, hotels/flights discount 22% Travel websites & blogs (e.g. Mafengwo, Tripadvisor) 43% National holidays, e.g. Golden Week 21% Movies/TV programmes 14% Destination programmes on online platforms, e.g. Youku 15% Airlines official websites & social media channels 10% Online travel website s recommendation 15% Travel leaflet obtained in home city (e.g. travel agencies, public areas) 8% Note: Multiple choice question with each respondent limited to max. 3 choices Two-thirds of Chinese Travellers Finalised Their Trips to Short Haul Destinations in Less than 3 Weeks Lead Time to Purchase Air Tickets for Long Haul Destinations Tier 1 Tier 2 Less than 1 Week 4% 2% Lead Time to Purchase Air Tickets for Short Haul Destinations Tier 1 Tier 2 Less than 1 Week 29% 39% 2-3 Weeks 34% 39% 2-3 Weeks 45% 40% ~1 Month 41% 39% ~1 Month 20% 18% 1-3 Months 16% 16% 1-3 Months 5% 2% 3-6 Months 5% 3% 3-6 Months 1% 1% Singapore Ranks Highly for its Strong Hygiene Factors and as a Family Vacation Destination with Children Relaxation Japan, 40% Cultural & Sightseeing Food Affordable Shopping Hygiene Factors (e.g. safety, cleanliness) Japan, 45% Japan, 42% Japan, 29% Singapore, 35% Family Trip with Children Japan, 37% Korea, 36% Singapore, 41% Korea, 36% Singapore, 29% Japan, 33% Singapore, 35% Hong Kong, 34% Korea, 39% Singapore, 32% Korea, 25% Korea, 32% Korea, 34% Singapore, 33% Hong Kong, 34% Thailand, 27% Hong Kong, 20% Thailand, 26% Hong Kong, 27% Thailand, 25% Malaysia, 22% 19% Malaysia Thailand, 20% Australia, 26% Thailand, 25% Maldives, 20% Thailand, 21% 17% Maldives 18% Malaysia Hong Kong, 24% Malaysia, 25% 19% Malaysia 17% Australia 17% Australia 17% Australia Maldives, 21% Australia, 23% 18% Australia 14% Maldives 10% Indonesia 12% Maldives Indonesia, 21% 18% Maldives Note: Singapore ranks 4th in Luxury Shopping Note: Singapore ranks 4th in Family Trip with Elderly 41% of the Chinese Travellers are Receptive to Twinning Singapore with Other Destinations Preferred Destination Types to Twin Singapore With Sample size: 653 Top 5 Destinations to Twin Singapore With 41% 37% 37% 34% 32% Vibrant City Life Cultural & Historical Sites Beaches Peninsular Malaysia Indonesia - Bali Thailand - Inland Maldives East Malaysia Note: Peninsular Malaysia refers to Kuala Lumpur, Johor, whilst East Malaysia to Sabah, Sarawak. Thailand Inland refers to Bangkok, Chiang Mai

18 PAGE 16 CHANGINEWS CHANGI AIRPORT NAMED WORLD S BEST AIRPORT FOR 5 TH YEAR RUNNING Changi Airport has been voted the World s Best Airport by air travellers at the 2017 World Airport Awards for the fifth year in a row. It was also named the Best Airport in Asia, and Best Airport for Leisure Amenities, the latter a title it has held since the award category was introduced in The awards were held at Passenger Terminal EXPO in Amsterdam, Netherlands on 14 March Mr Lee Seow Hiang, CEO of Changi Airport Group said: Winning the Skytrax World s Best Airport Award for the fifth consecutive year is immense encouragement to our 50,000-strong airport community at Changi Airport, every one of whom is passionate about delivering the most memorable airport experience to our passengers. This recognition affirms our service belief which we have held steadfast all these years putting passengers at the heart of all we do. While we expand our facilities to serve more passengers in the coming years, we will continue to work closely with all our airport partners to further enhance the Changi Experience. The Skytrax World Airport Survey is widely regarded as the quality benchmark for the world airport industry, assessing customer service and facilities across 550 airports. The 2017 Awards are based on million airport survey questionnaires that were completed by 105 different nationalities of air travellers from July 2016 to Feb Among the service and product key performance indicators include travellers satisfaction during check-ins, arrivals, transfers, shopping, security and immigration through to departure at the gate. CHANGI INTERLINE CONFERENCE 2017 SAVE THE DATE 12 OCTOBER 2017 The Changi Interline Conference is a platform for airlines to meet and identify new interline opportunities to expand their networks at Changi. Started in 2010, the Changi Interline Conference event continues to grow and establish itself as an effective conference that is attended by both current and potential airline partners, and travel trade partners of Changi. You can look forward to: 1-to-1 meeting opportunities with existing and potential airline partners to explore new interline partnerships Establish contacts and forge new partnerships with Singapore s key travel trade partners. Find out opportunities to grow your regional network in Changi Stay abreast with Singapore s latest tourism products Mark your calendar today! To register your interest, please cic@changiairport.com