Background to Changi
Operation management is key aspect of management that provides operation management of a typical international airport. Changi Airport is typical airport that offers the most convenient air transport that attribute to its global status. For the last five years Changi Airport has been named world’s best airport and one of the busiest airports in the world (Skytrax, 2016). Changi Airport operations provide air transport for passengers and cargo mainly to its destination 250 cities within 60 countries. Changi Airport is also host to a number of airlines connecting most of cities throughout the world. Changi Airport has history that dates back to 1981 and up to date it handles huge number of passengers with over 50 million passengers in 2012. Changi Airport operation focuses on issues such as sustainable air travel and environmental management. The following paper compares and contrasts Singapore Changi Airport (Passengers) Operations.
Changi Airport is currently the largest airport in Singapore and one of the largest airports in Southeast Asia. Changi Airport was established in 1975 with official operation beginning 1981. According to Skytrax is currently the best airport in the world and Changi Airport has top the list for five consecutive years from 2013 to 2017 (Skytrax, 2016). Changi Airport is located in Changi Island to the east of Singapore. The location was chosen in 1975 following the need for expansion of the two initial airports, Paya Lebar and Kallang Airport. The main governing body for Changi Airport is Changi Airport Group. Changi Airport has three main operational terminals, Terminal 1-3. Other two terminals that include terminal 4 is expected to be operational in 2017 while terminal 5 2020 (Melissa, 2005).
The operation of Changi Airport currently handles air traffic from all over the world. To assist international operations, the three main operational terminals of Changi Airport are fitted with immigration facilities that help in registration of passengers. Changi Airport is premium airport with total size of 1,300 hectares approximately 1,800 football fields and the number of runways are 2 (length of each runway is 4km). The aircraft that is currently served by Changi Airport stand at 92 with remote aircraft number of 37. In terms of destination Changi Airport serves 250 cities within 60 countries it currently reach. Changi Airport of 32 000 staff serve over 50 million passengers annually as at 2012 (Simchi & Kaminsky, 2007).
Prior to the existence of Changi there were two main airports in Singapore, these two airports were Paya Lebar and Kallang airport. Paya Lebar was established in 1937 as the Singapore’s main airport and Kallang Airport in 1955 (Winchester, 1938). The increase in air traffic globally in 1970s poses an increase in passengers from the initial 300000 in 1955 to over 1.7 million in 1970 and the figure was even higher in 1975 at about 4 million passengers. The existing pressure on the two airports made the government to look for alternative solution with the main focus on expanding Paya Lebar Airport to accommodate the increasing air traffic. The expansion and construction of new runways did not solve the traffic pressure and on review of government’s plan concluded that there is need to build a new airport. One of the main reasons for shifting attention to new location was also contributed with urban growth that poses challenge to the expansion of the Paya Lebar airport. Changi Island was therefore selected for its easy expansion through land reclamation (Goldberg & Sifonis, 1994).
History of Changi
Changi was selected in 1975 specifically at the tip of the Changi Island and this also offers the solution to noise pollution as aeroplanes could fly over the sea. In 1979 the government of Singapore decided to benchmark on the Taiwan’s new airport as the model for building Changi Airport. The construction of Changi Airport initially had only one terminal the terminal 1 that became operational in 29th December 1981 with the first flight from Kuala Lumpur. The Changi Airport Terminal 2 was officially opened in 1990 to reduce the coming air traffic. The Changi Airport operation policy enables the airport to expand freely with the plan establishing another terminal at Terminal 3. The third terminal became officially operation December 2007 though the flight test began in 2006. In 2012 the Changi Airport Group unveil the plan to built another airport terminal that suppose will serve over 16 million passengers at Terminal 4. Since 2013 the ministry of state for transport has come up with plan to build another terminal that will be the largest facility at Terminal 5 (Walsh, Hershauer, Tommelein & Walsh, 2014).
Changi Airport has three main operational terminals and these terminals are terminal 1-3 with terminal 4 not officially operational. The Changi Airport is home of many operational activities that aim to make Changi Airport home to its million passengers. The following is an overview of value chain within Changi Airport terminal.
Terminal 1 is the oldest terminal within the Changi Airport since it’s officially operational in 1981. The terminal is H-shaped designed with aerobridge that maximise the high number of aeroplanes. Since it was established the terminal has undergone renovation that includes its halls and control tower to add value to customer’s comfort. For instance, the halls have been renovated to increase floor space so as to give customers spatial comfort and better flow. Some of the facility that betters the terminal includes retail and F&B offering facilities. Some of the facilities and features found in terminal 1 that complete the value chain include: airline lounge, baby care room, baggage storage, business centre, garden and many other. The terminal has Airline Lounges that offers customers good resting place where one can relax at comfort. For those passengers with babies, baby care room is the best place to stop and reduce stress. Changi Airport has a convenient business centre that has lots of stores and offer services such as mailing, faxing and photocopying. Other business facilities are pharmacies and clinics that offer the best medical services to customers. At the end of the Changi Airport terminal 1 is garden specifically full of cactus to give passengers the best moment at Changi Airport (Changi Airport Group, 2013b).
Terminal 2 was officially opened in 1990 adjusted to terminal 1 towards the south initially linked to terminal 2 via sky-train system. Terminal 2 was initially used by all Singapore airlines and SilkAir flight with other Southeast Asian carriers. The area under terminal 2 is approximately 358,000 sqr/metres. Some of the value chain features found in the Terminal 2 are 1983 café Nanyang, bakery café, juice bar, and other dining facilities. Within the terminal there are many different dining and refreshment facilities that give the customers a memorable experience at Changi Airport. These facilities offer services ranging from drinks to indigenous meals such as seafood, Indian foods, Thai foods and Australian juice (Institute of Service Excellence, 2014).
A typical international airport operation
Terminal 3 was officially operational on 9th January 2008 leading to an increase annual passenger’s capacity of 22 million. Terminal 3 has 28 aerobridges that can handle up to 8 Airbus A380. Terminal 3 is also designed with features that make it attractive such as Birds in Flight sculpture, tour bus, restaurant and floral inspiration garden. To help passengers will to tour around the city, the hop in and hop of bus give the passengers service they can use to tour. Being connected to terminal 1, terminal 3 also has business centre, pharmacies and clinics, baby care room and baggage store room. Another feature that stands within terminal 3 is Birds in Flight sculpture that acts as inspiration for liberty and freedom. To complete the value chain the Changi Airport has floral garden and restaurant free to use for tired passengers. Finally, terminal 3 also has convenient customer information centre that assist any customer within the facilities (Lynch, 2012).
Terminal 4 is supposed to be officially operational in 2017 and is expected to reduce air traffic within the year. The terminal that replaces the previous Budget Terminal was started in 2008 with the aim to cub the ever increasing traffic demand. Terminal 4 is slated to host Cathy Pacific airline as the first airline to use the terminal. Other airlines that are also expected to use the terminal include the Korean Air, Vietnam Airline and AirAsia (Changi Airport Group, 2014).
Changi Airport has undergone key passengers’ transformation since its inception. Some of the key passenger transformations that can be evident are increase passengers number, technological transformation, passengers service and customer experience. Firstly, the number has been on the steady increase since its inception. Passenger’s number is one of the major milestones in passenger transformation. Currently the number of passengers that passes through Changi Airport is 148,000 passengers per day. Changi Airport surpasses the 20 million passenger milestone in 1994 (Changi Airport Group, 2014a).
Secondly, technological changes in the Changi Airport have facilitated fast passengers number transformation. This is coupled with Fast Seamless Travel (FST) that is self service system allow customers to access services such as checking flight, seats and bag tags. FST technology is one of the technological milestones that have transform passengers services within the Changi Airport. Another technological milestone is fast feedback system that allows customers to rate their experience at the air port (Changi Airport Group. 2014c).
Thirdly, passenger’s services are another milestone as customer service has change over the year with introduction of digital customer service. This gives the airport good time to serve huge number of customers at ago. Changi Airport has integrated digital technologies operation model that gives high productivities and vast passengers services. The digital services focus on making customer experience non-travel services such as shopping and dining. Moreover, numerous business stores and hotels within the airport have truly transform passengers services at Changi Airport (Kaplinsky & Morris, 2001).
Finally, customer experience at Changi Airport is great as evidence with feedback received from customers. The Changi Airport Group has transform the airport structure and service that allow both travel and off-travel customer experience. The main aim of the airport operation is not offer customer services. The renovation of terminal 1 through fitting of various services hub that that are also aided by digital services. Currently Changi Airport stands out as one of the airport with operational excellence. Some other technological breakthrough that facilitates faster customer service is use of mobile phone to reach customers (Changi Airport Group, 2013).
The value chain for passengers within the Changi Airport terminals
The core business of moving customer across the world through Changi Airport is mainly enhanced with world class infrastructure, specialized logistics and technology. Firstly, building of two more terminals, terminal 4 that is expected to open in 2017 and terminal 5 schedule for 2020 gives the airport high class infrastructure. The renovated terminal 1 is also one of the modern terminal that is fitted with current technological self service systems. Customers can therefore experience good tour around the city aided with the bus station within the airport. Bust transport is also interconnected with several roads connecting various towns within Singapore to the airport. Some of the infrastructure companies working within the airport are aerospace maintenance, repair and overhaul sector (MRO) and global 3PLs (Germin, 2014).
Secondly, being cargo hub Changi Airport offers the most convenient logistics services though its automated cargo transit services. In addition, Changi Airport forms the connection point with several international logistic firms operating within the airport facility. Some of the logistic firms currently working within the city are Airport Logistic Park of Singapore (ALPS), service parts logistics (SPL) and Vopak. Other logistic firms include Katoen Natie that deals in chemical manufacture and transport logistics (Nurdianah, 2013).
Changi Airport is currently one of the technological advance airports in the world with well developed self service systems. Some of the technological advance systems are fast seamless travel (FST) and information technology that facilitate internet connectivity within the facilities. Nearly all terminals within the Changi Airport are connected through fast internet connectivity that facilitates the operation of fast seamless travel (FST) kiosks (Changi Airport Group, 2016).
Changi Airport is one of the logistic hubs that facilitate high movement of passengers and cargo throughout the world. Changi Airport connects 250 cities across 60 countries in the world. The Changi Airport supply chain consists of aerospace, chemicals, and electronics. Firstly, aerospace section consists of aerospace maintenance and spare parts. There are many companies that offer space maintenance repairs, through aircraft-on ground (AOG) and integrated materials management spares. Katoen Natie’s facilities offer logistics for chemicals that also form part of supply chain within the Changi Airport. Some of these chemicals form part of cargo that are transported through Changi. Some firms such as leveraging Singapore manufacture electronics that are also used in maintenance of airplanes such as production vendor managed inventory (Andrew, Dan & Tom, 2006).
There are other products that are transport through Changi Airport, some of this products are perishable food products. These food products are stored within the [email protected] building that offers solution for perishable products. The facility is used to store other products that include pharmaceuticals and seafood. Some of the users for Coolport are Australia and New Zealand that produce most of these perishable products (Nagurney, 2006).
There are some firms that offers supply chain management consultant service which are also based at Changi Airport. Changi Airport is connected to many supply chain consultants that ensure sustainable global ecosystem. Some of these firms are third-party logistics (3PLS), ABeam and Accenture provides services that aim at complete ecosystem. This three consultants focus on strategic planning, marketing and sale and efficient operation to ensure competence. Accenture for instance, offers services that streamline supply chain, procurement and operation with the aim of establishing excellent supply chain in the air transport. ABeam assist in supplying chain management for various products within the Asia with main focus on Singapore. Abeam also provides customer quality assessment services aiming at offering good services and products to customer within Southeast Asia (Halldorsson, Herbert & Tage, 2003).
Terminal 1
Changi airport has excellent environmental policy that focus on energy efficiency, water management waste management and noise management. Changi being the Singapore’s air transport hub is working toward environmental sustainability. To achieve the environmental sustainable air travel the airport management is committed to minimise environmental pollution to the community. The environmental policies therefore sets environmental target aiming to reduce pollution to the minimum level. For instance, on energy efficiency Changi airport has policy that sets their target on energy conservation and efficiency. One of the main struggles of the airport is to get cost effective ways to minimise energy consumption and lower the environmental pollution from oil usage (Carol & Chad, 2011).
Changi airport has various environmental initiatives that work to reduce environmental pollution within the airport and around the globe. The main source of energy within the airport is electricity that light buildings and cooling ventilations. This energy is used together with fuels used in vehicle and air support equipments. Energy consumption within the airport is managed though Yellow Initiative program. On water management, the airport has program called Blue Initiative that provides guidelines in management of water pollution. Another concern of Changi airport is waste management that indicate that some waste within the airport come mainly from terminals and flight operations, maintenance and infrastructure constructions. Through green initiative, Changi airport is able to maintain clean environment free from pollution. Lastly, noise pollution poses challenge to most airports around the world. Noise from the airport affects the community around the airport. The noise pollution comes mainly from airline operations, engine maintenance and loading or unloading activities. The airport manages noise pollution through Silent Initiative (Wieland & Wallenburg, 2013).
Changi Airport is economic hub of Singapore with several economic activities interconnected through network of global logistic. There are some strategies that have been developed by Changi Airport to ensure economic sustainable environment. Firstly, Changi Airport has established network of international monetary system that allow payment from any point in the supply chain. To facilitate faster supply and customer service within the airport Changi Airport has automated credit and debit card payment system. This is particularly important for the current international money payment. Secondly, through global logistics network majorly boosted by logistic consultant firms, Changi Airport is interconnected with many cargo transport network that is economical sustainable to the country. Thirdly, the technological infrastructure in Changi Airport has helps in maintenance of customer self service which is the key solution to air traffic. This makes the airport realize its economic sustainable policy throughout Southeast Asia (The Business Times, 2016).
Changi Airport has some of the best social facilities that include bar, restaurants and other social amenities. There are number of hotels and restaurants that offer socializing options within the airport. Bars within Changi Airport are some facilities that are social points where customers can sit and refresh before travelling to any destination. The airport is also connected to the social media where it has subscribers or followers and this is important for connecting to customers globally. With the development of iChangi application many passengers can now connects at convenient speed with the Changi Airport services (CNBC, 2014).
Terminal 2
Changi Airport through minister of state for transport launch a plan to built terminal five following terminal 4 that is suppose to start working 2017. Terminal 5 is expected to be the largest facility owing to the increasing number of passengers and traffic demand. The future plan for Changi Airport is projecting to remain one of the best airports in the world as it currently stands. The development of terminal 4 and 5 are the main expansion features for Changi Airport. The Changi Airport is on continuous expansion plan and is expected follow the same trend in the near future (Monczka et al, 2000).
Terminal 5 has been planned through multi-agency taskforce that was formed to lead the development plan. The terminal will be operational in 2020 and is expected to handle up to 50 million passengers annually as compared to other terminals that can handle a combine number of 50 million passengers. Terminal 5 alone will be built on 1080 hectares of land reclaimed from in the east of Changi (Changi Airport Group, 2017). The future plan of Changi Airport points to overall customer management of approximately 135 millions. Changi Airport terminal 5 will be connected to other four terminals roads to ensure connection between the five terminals for good management. Changi Airport faces expansion challenges with ever increasing traffic demand. This expansion due to increase in demand and terminal 4 and 5 are expected to reduce this traffic with increase capacity of terminal 5 (Changi Airport Group, 2016).
Conclusion
In conclusion, Changi Airport truly offer quality services through its three operational terminals and other two terminals 4 and 5 expected to start operation in 2017 and 2020 respectively. Value chain within Changi Airport is aided with businesses, store, garden and cooling facilities help in ensuring customers get the best services at the airport. Changi Airport has wide network of logistics and supply chain management. The future plan of Changi Airport is expected to expand reaching overall customer number of 135 million. Changi Airport is economic hub of Singapore with several economic activities interconnected through network of global logistics and network of destinations.
Though Changi Airport is currently the best airport in the world, there are some other changes that need to be made in order to better customer. Some of the recommendations that need to be considered by Changi Airport include environmental concern, increase marketing and low cargo transportation. As much as the airport has develops initiatives to cub environmental pollution, much need to be done due to continuous maintenance going on within the airport. The environmental pollution still remains a matter of concern. The marketing of the airport services abroad is still low as compared to its rival airports such as Dubai’s Emirate and Air France (Kozlenkova et al, 2015). Cargo transport still remains low with low number of cargo place available within the Changi Airport. The Changi Airport Group need to consider increasing the number of cargo place to help cub the increasing number of cargo.
Terminal 3
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